Federato, the AI underwriting platform for insurers, published research on 10 November 2026 finding that 76% of London Market organisations expect their core systems will need significant integration, modernisation or transformation to support AI and future underwriting, and that 89% say operational speed cost them business to a competitor in the past 12 months. Fintechbits’ archive shows Federato’s July 2026 survey of 750 US property and casualty professionals found only 23% of insurers reported AI fully integrated, while its Federato London Market research says 58% of respondents’ organisations already use AI in production, so the two surveys measure different things and should not be read as a like-for-like comparison. Federato sells the kind of platform the report recommends.

What the Federato London Market survey found

According to the Federato release, only 24% of respondents believe incremental upgrades to their existing core will meet future needs. The most cited barriers reflect how the London Market works: subscription and multi-party underwriting (43%), multiple systems across the policy lifecycle (42%), and difficulty connecting the core with broker, bureau or settlement processes (38%).

Speed is the theme. 42% said changes to underwriting strategy take weeks or longer to reach day-to-day decisions. Reported business losses rise from 59% among organisations that implement changes immediately to all of those that take a month or longer.

Organisations that lost business because of speed were 2.4 times as likely to make a unified platform or policy administration modernisation their top technology investment over three years, 50% against 21%. Faster quotes and broker responsiveness were the top priority for AI and core modernisation (36%), ahead of underwriting margins (26%) and scaling premium without matching headcount (25%).

Will Ross, Federato’s chief executive and co-founder, said: “The research reveals a clear consensus: legacy core systems are too slow, and bolt-on AI can’t deliver what it promised.”

Reading the two Federato surveys together

The July survey covered 750 US property and casualty professionals and found a 64-point gap between what leaders and underwriters believed about their AI tools. Underwriters used an average of 6.8 systems, and only 23% of insurers reported AI fully integrated.

The London figure of 58% using AI in production is a looser measure. Using AI somewhere in production is not the same as having it integrated across underwriting. Both surveys point the same way, though: AI adoption is widespread in name and patchy in practice.

Fintechbits analysis

Why the Federato London Market Findings Deserve a Discount

The Federato London Market findings ring true, but readers should weigh who is asking. Federato sells a unified underwriting platform, and the survey’s conclusion, that bolt-on AI fails and the core must change, is its sales pitch. The sample of 245 is reasonable for a specialist market, but the release gives no detail on how respondents were chosen.

The London Market has specific reasons to be slow. Risks are shared across several syndicates, brokers sit in the middle of every placement, and much data still moves through bureau and settlement systems built decades ago. Lloyd’s own modernisation programme has tried to digitise this for years with mixed progress.

The 89% figure is the one to remember. If nearly nine in ten firms believe they lost business to faster rivals, the competitive pressure is real regardless of who sponsors the research. Fintechbits has covered pricing pressures in smaller lines, such as trades insurance.

Frequently asked questions

What did the Federato London Market survey find?

Federato found 76% of London Market organisations expect their core systems will need significant change to support AI and underwriting, and 89% say operational speed cost them business in the past 12 months.

Who took part in the survey?

The survey covered 245 professionals at Lloyd’s managing agents, company market insurers, managing general agents, reinsurers and brokers, according to the release.

How many London Market firms use AI?

58% of respondents said their organisation already uses AI in production, while only 24% believe incremental core upgrades will meet future needs.

What to Watch Next

The signal to watch is core replacement decisions at Lloyd’s managing agents and large MGAs. If several announce policy administration or underwriting platform changes in the coming quarters, the Federato London Market findings will look like an accurate read of the market rather than a vendor’s wish list.