2026-11-10 · Source: Insurance Business Australia
Summary in 3 Points • Xceedance is shifting from effort-based contracts to transaction- and outcome-based pricing for insurance services. • The company claims a 35% to 50% efficiency improvement in agency and broker operations using its IAN agent studio. • ASIC's Report 798 highlights a governance gap in AI use among financial services licensees, with 30% relying on third-party models. --- Xceedance is transitioning its pricing model from effort-based contracts to transaction- and outcome-based fees, aiming to enhance efficiency in insurance services. The firm reports a 35% to 50% improvement in operations through its IAN agent studio, which combines AI agents with human oversight. However, the Australian Securities and Investments Commission (ASIC) has raised concerns about governance gaps in AI use, noting that 30% of financial services licensees depend on third-party models without adequate risk management frameworks. The implications for the London Market are significant, particularly for Brokers and Compliance roles, as firms may need to reassess their governance structures in light of increasing reliance on AI technologies. The shift towards outcome-based pricing could influence how delegated authority and binder business are managed, potentially leading to more stringent oversight of AI-driven processes. A key development to watch is how the regulatory landscape evolves in response to these technological advancements and their impact on accountability in insurance operations. The shift towards transaction-based pricing and efficiency improvements could reshape how delegated authority and binder business are managed in the London Market.
The shift towards transaction-based pricing and efficiency improvements could reshape how delegated authority and binder business are managed in the London Market.