Bank of England and FCA survey finds 93% of responding insurers use AI

Ninety-three per cent of insurers that responded to the Bank of England and Financial Conduct Authority's 2026 survey of AI in UK financial services are using AI, the regulators said on 26 October.

Insurers reported a median of 18 AI systems in production, against 22 at UK banks and 43 at international banks and broker-dealers. Across all firms, 86% now use AI, up from 75% in 2024 and 58% in 2022.

The more detailed figures come from the 105 firms that completed the full questionnaire. More of their AI is bought in. Third parties supplied 39% of all systems, up from 33% in 2024, and 53% of the systems firms rated as high materiality, up from 35%. The three largest model and API providers accounted for 54% of firms' relationships, and 98% of firms used at least one of the three largest cloud providers.

Firms' understanding of those systems is thinner. Eighty-one per cent relied on vendor assurance for high-materiality systems supplied by third parties, and 54% said applying model risk management to vendor models was a challenge.

Eighty per cent of those firms said they were using AI agents, but only 2% gave them broad autonomy. Fewer than half had incident playbooks for AI, while 68% kept a central inventory of AI systems.

The survey drew 196 responses, 101 from larger firms and 95 from smaller ones, which could choose a shorter questionnaire.

Fifty-seven per cent of firms rated the risk that AI amplifies cyber threats as high or severe, and 80% expected it to be at that level within one to three years.

Related coverage: FCA says senior managers are accountable for their firms' AI and Moody's finds AI in core work at two-thirds of North American insurers.

Sources

• Bank of England and FCA, Artificial intelligence in UK financial services 2026, 26 Oct 2026
• Coverwire, 19 Oct 2026

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