Hastings investing in artificial intelligence to spot fraudulent claims

HASTINGS has become the latest insurer looking to invest in artificial intelligence after chief executive Gary Hoffman pledged to hire hundreds of data experts.

Mr Hoffman said the FTSE 250 company was looking to hire a “few hundred people in the next few years, particularly data analytics people and people involved in AI [artificial intelligence]”. Insurers are competing to embrace AI, or machine learning, to spot risky behaviour and fight fraudulent claims, with Aviva confirming earlier this year that it was looking to acquire start-ups in this space.

Mr Hoffman’s comments follow a strong first half for the group, which reported a 22pc rise in profits to £86.5m after cashing in on the growing number of people shopping for a bargain on price comparison websites.

The group, which provides car, bike, van and home insurance, also saw gross written premiums soar 28pc on a year ago to £462m for the six months to June 30.

“The group’s digitally focused business model has allowed it to benefit as customers shop around,” it said.

Mr Hoffman said the group was on track to deliver the targets it set itself earlier this year – which include having 3m customer policies in place by 2019, up from 2.5m currently – to replace those laid out after its initial public offering in 2015. “Hastings continues to deliver, and indeed over deliver, on its IPO promises,” Barclays’s analyst Alan Devlin said. “While Hastings has undoubtedly benefited from the UK motor insurance pricing cycle, it has taken full advantage and continues to outpace its peers.” Like most of its rivals, Hastings is still waiting on the outcome of a government consultation into a change in the Ogden discount rate, which could cost insurers an estimated £5.8bn if it stays at minus 0.75pc.

The group raised its interim dividend by 24pc to 4.1p per share. However, shares in Hastings fell 1.7p to close at 320p.