Australian Brokerages Adopt AI Without Formal Policies

A new industry report finds most local insurance brokers use artificial intelligence despite lacking governance frameworks.

Updated on Oct. 26, 2026 in Artificial Intelligence

Isometric editorial illustration showing stylized paper forms transforming into organized blocks, representing insurance technology adoption. — Most Australian insurance brokerages have integrated artificial intelligence into their operations, yet many lack formal policies to manage data privacy and reliability risks. AI Illustration. Upload story photo >

Live Poll

Do you trust businesses to use artificial intelligence responsibly when making decisions affecting your service?

Ninety-one per cent of Australian brokerages have now experimented with or adopted artificial intelligence, yet only one-third maintain a formal policy to govern its use. Over one in five brokerage firms currently operate without any AI-specific safeguards in place.

Why it matters

The widespread integration of AI for policy analysis and coverage comparison brings significant operational efficiency, but the lack of formal policies leaves firms vulnerable to data privacy and reliability risks. As technology strategies mature, the gap between those embedding AI into core operations and those using it informally highlights a need for better governance.

Eighty-six per cent of brokerages use AI for policy analysis, with 58% of users reporting time savings of at least one hour per week. However, 49% of brokers cite concerns about accuracy as the primary obstacle to further adoption.

The players

National Insurance Brokers Association

This is the peak industry body representing insurance brokers in Australia that provides professional development and advocacy.

Australian Prudential Regulation Authority

This is the independent statutory authority that supervises institutions across banking, insurance, and superannuation to ensure financial stability.

The details

Brokerages primarily use AI to process, compare, and summarise large volumes of documentation, generally relying on human oversight for final decision-making. While small firms lean on human review of outputs, 62% of large and enterprise brokerages prioritise staff training to manage responsible AI use.

The survey of brokerage leaders was conducted in August 2026.
The National Insurance Brokers Association released the report in October 2026.
New Privacy Act requirements will take effect in December 2026.
The Australian Prudential Regulation Authority will conduct technology risk reviews throughout 2026-27.

The Tech Race

This industry trend follows the upcoming mandates within the Privacy Act, which will require organisations to provide greater transparency regarding algorithmic decision-making. These regulations mark a departure from the current informal experimentation phase toward a strictly monitored operational environment.

Customers should be aware that while AI can speed up policy comparisons and summaries, firms are increasingly required to disclose when computer programmes drive core decisions. These changes will soon grant consumers more visibility into how their insurance documentation is processed.

The takeaway

Brokerages should prioritise formalising their AI governance frameworks to prepare for impending federal transparency requirements. Implementing robust staff training and human-in-the-loop review processes can help mitigate reliability concerns while maintaining efficiency.

What happens next

The Australian Prudential Regulation Authority is scheduled to conduct targeted operational and technology risk reviews of general insurers throughout the 2026-27 period.