Building the future of General Insurance in Scotland
Alex Cross
Chief Customer Officer
Tesco Insurance
Earlier this month, we hosted the first meeting of our new General Insurance Sector Group, bringing together leaders from across Scotland’s insurance sector to discuss the opportunities and challenges facing the industry.
The conversation highlighted the significant contribution general insurance already makes to Scotland’s economy. The sector supports around 20,000 jobs through its wider supply chain in Scotland, including approximately 10,000 in Glasgow, and contributes an estimated £1 billion in GVA. Yet its economic and social contribution remains relatively under-recognised.
Three themes emerged as priorities for the group's work, with AI and digital transformation, talent and capability, and the changing risk landscape – including climate change and market consolidation being highlighted.
AI was a particular focus. While there is considerable excitement about the potential of agentic AI to transform insurance and deliver even better outcomes for customers. There is also understandable nervousness around the risks and unknowns that need to be considered carefully. The group will explore how AI can be used to make insurance more accessible and understandable, while ensuring vulnerable customers are not left behind.
Talent was another key theme. Participants highlighted strong entry-level and contact-centre pipelines, but challenges in attracting senior and specialist skills, including technology, analytics and design. The group will explore how Scotland can better develop and retain its own talent, strengthen career pathways and improve awareness of insurance as a career.
The group will also consider how insurance intersects with Scotland’s distinctive policy landscape – from flood resilience and climate adaptation to financial wellbeing, consumer understanding and financial education.
Next, we will develop a programme of work around these themes, identify opportunities for collaboration across the sector and connect the group with wider initiatives including the CII, GITF, schools banking and our AI, skills and inclusion work.
The ambition is straightforward: to ensure Scotland has a strong, innovative and customer-focused general insurance sector – and to explore whether Scotland can become a leader in some of the biggest changes facing the industry.