Industries · Financial Services & Insurance

Executive AI transformation forfinancial services and insurance.

Where AI creates commercial value in a mid-market broker, insurer, lender or advice business — and what has to change in the operating model before any of it counts.

For regulated firms that price, underwrite, lend, advise or settle claims.

01 · The executive challenge

Cost of service is rising faster than income.

In a regulated business, every extra requirement lands as headcount unless the process changes. Adding AI tools without changing the process is technology without transformation — new licences on top of the same cost base.

The expense ratio keeps climbing

More checks, more evidence, more record keeping. Each reasonable on its own and expensive in aggregate.

Onboarding takes too long

Due diligence and evidence gathering delay the point at which a customer starts earning. Some cases never finish.

Claims and complaints are manual

The same information gets read, keyed and summarised several times by several people.

Consumer Duty raised the bar

Evidencing good outcomes is now a standing cost, not a project.

Experienced people are scarce

Underwriters, claims handlers and paraplanners are hard to recruit and expensive to lose.

Risk appetite is genuinely low

Which is right. But it often stops sensible work before anyone has defined where a human must stay in the loop.

Where it hurts

Three things we hear in almost every conversation.

In the words people actually use. If none of these sound like you, that is useful to know in the first ten minutes.

“Underwriters spend their day reading submissions that should never have reached them.”

Everything arrives in the same queue, in six different formats, and gets read by hand.

“Cases stall for weeks waiting on a document nobody chased.”

The customer is not yet earning, and nobody owns the chase.

“The same claim gets read and keyed four times before anyone assesses it.”

Each handover adds cost and days, and none of it adds judgement.

02 · Where value is created

Five places where cost and income are decided.

Each one has a different lever. AI is only worth doing where it moves one of them.

Acquiring the customer

Enquiry, quotation, submission and onboarding. The lever is conversion and time to income.

Assessing the risk

Underwriting, credit and suitability. The lever is decision quality and speed.

Servicing

Queries, changes, documentation and reporting. The lever is cost per customer.

Handling claims and complaints

Notification, assessment, settlement and resolution. The lever is cycle time and leakage.

Retaining the customer

Renewal, review and repeat business. The lever is persistency.

03 · The processes underneath

The repeatable work that carries the money.

This is the level at which change actually happens. Not “the business” — these processes.

Enquiry and quotation

Onboarding and due diligence

Underwriting or credit assessment

Suitability and advice documentation

Policy and account servicing

Claims notification and assessment

Complaints handling

Renewal and review

04 · Where AI could change the economics

Patterns worth examining, stated as questions.

Whether any of these applies to your organisation is exactly what the paid work establishes. We would rather call these patterns than dress them up as proof.

Practitioner-validated

Submission and enquiry triage

Could incoming submissions be read, summarised and sorted, so experienced people see the ones that need them?

Practitioner-validated

Evidence gathering at onboarding

Could documents be checked and chased so cases stop stalling, with exceptions raised to a person?

Practitioner-validated

Claims first notification

Could a claim be summarised and routed on arrival, separating the obvious cases from the complex ones?

Practitioner-validated

Complaint drafting

Could a first response be drafted from the file for a handler to check, shortening resolution times?

Research-backed

Suitability and file notes

Could evidence of a good outcome be assembled from what actually happened, rather than written up afterwards?

Research-backed

Renewal preparation

Could review packs be prepared in advance, so the adviser or broker spends the time on the conversation?

Each one is marked for evidence. Research-backed means we see it in the sector. Practitioner-validated means people who do this work have confirmed it. Nothing here is claimed as true of your business until your own people have said so.

Notice what is not on this list: anything that starts with a tool. The question is always which number moves.

05 · What usually has to change

In a regulated business, the design work is most of the job.

This is why buying a tool and switching it on almost never produces a measurable result here.

Where a human decides has to be defined

Not “a person reviews everything”, which removes the benefit, and not “the system decides”, which removes the control. The threshold has to be designed, written down and agreed.

The audit trail has to be built in

If you cannot evidence how an outcome was reached, it does not matter how fast you reached it.

Roles change

Handlers and underwriters move from processing to judging exceptions. A higher-skill job on smaller volume, and the team structure has to follow.

Second line comes in early

Risk and compliance involved at design, not at sign-off. Late involvement is how these programmes die.

Data has to be reliable

Policy, claim and customer records need to be consistent enough to use. Often the first real project.

The measures change

Not “cases automated”. Expense ratio, cycle time, straight-through rate and complaint resolution time.

06 · How we would measure it

Numbers your board already reviews.

We set these before anything is built. A baseline taken beforehand is evidence. One reconstructed afterwards is an argument.

Expense ratio

Cost of service against income.

Time to onboard

Enquiry to first income.

Claims cycle time

And handler touch time per claim.

Straight-through rate

Cases completed without a manual step.

Complaint resolution time

And the volume upheld.

Persistency and renewal rate

By book and by segment.

Cost per policy or account

Fully loaded, not just direct cost.

Capacity released

Skilled hours freed, and where they went.

Your Microsoft estate

You probably already own most of what a first case needs.

Microsoft 365 Copilot for document and correspondence work. Copilot Studio agents for defined steps such as evidence chasing or triage. Power Platform and Dynamics 365 where case workflow has to change. Azure and your data estate where records need to be consistent and access properly controlled.

We sell none of it, resell none of it and build none of it. Your technology partner does that, and keeps the work.

Your own risk and compliance functions remain responsible for regulatory judgements. We help design the process; we do not sign off compliance.

Formalus
Commercial transformation & value
Where AI creates value in this organisation
How the work needs to change
What it should return, and whether it did
Your technology partner
Technical implementation & operation
Architecture, build, integration and security
Deployment and support
Whether the technology is working

Every AI programme needs both capabilities. We do the commercial one and never compete for the implementation work.

07 · How to start

Forty-five minutes, in the language of expense ratio and cycle time.

Free

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Our financial services view is a working model. It gets sharper with every engagement, and we will always tell you which parts are evidence and which are still assumption.

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Forty-five minutes with your executive team, and a straight recommendation either way.

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