1st Central Group launches the first agentic AI motor insurance proposition, powered by Microsoft technology

1st Central Group has launched Motivo, an agentic AI powered motor insurance proposition, developed in collaboration with Microsoft, designed to reshape how customers buy and manage car insurance. 

Motivo is at the forefront of applying agentic AI to motor insurance. The technology can carry out tasks on a customer’s behalf, including making policy changes and managing payments. Initial testing indicates that comparable customer interactions can be completed in around two-fifths of the time.

1st Central Group is a technology-led personal lines insurance group built for digital distribution and focused on making insurance fast, fair and simple for its customers. Launched in 2008, it now has around 1.4 million customers across motor and home insurance.

Motivo marks a significant development in 1st Central Group’s work with Microsoft, combining Microsoft’s AI and cloud capabilities with the Group’s data-led insurance expertise and proprietary technology platform. Teams from both businesses have worked closely to develop and test the proposition, with the aim of applying the technology across all operational requirements of an insurance business.

Motivo is currently exclusively available on Confused.com. The partnership is a natural progression as both companies focus on bringing new ways for customers to interact with their insurer. Confused.com’s market leading data and performance insights have been key to optimising Motivo.

1st Central Group’s custom-built policy administration system, FOCUS, has been fundamental to the development of Motivo.  Ownership of its technology platform gives 1st Central Group the flexibility to integrate new capabilities directly into its insurance operations at speed and bring new propositions to market. Motivo demonstrates how this investment can support growth by serving customers who want to manage their policies digitally, through voice or chat.

Motivo sits alongside the Group’s existing brands and is designed for customers seeking a digital-first insurance experience. Its conversational AI assistant, KAI, provides support 24 hours a day, helping customers buy cover, ask questions, make changes and manage their policies online or through the Motivo app.

Customers are able to use the AI tool to complete the process of buying an insurance policy for their car, but insurance specialists remain available when customers require additional help or when human judgement is needed. Claims support and additional functionality are planned for future phases of Motivo’s development.

Michael Lee, Chief Executive Officer of 1st Central Group, said:

“We believe this exciting development has the potential to reshape motor insurance propositions. At 1st Central Group, it’s our aim to provide insurance that is fast, fair and simple, and Motivo represents the next step in delivering that aim. 

"1st Central Group is built on proprietary technology. We have invested more than £90m since 2017 in creating an integrated technology and data engine that supports every stage of the insurance journey, from pricing and distribution to policy administration, claims and customer service. That technology has allowed us to deliver an agentic AI proposition at a speed that our competitors cannot match. 

“This collaboration combines Microsoft’s AI and cloud capabilities with our insurance expertise and understanding of customers. Together, we have developed a proposition that applies AI across key stages of the purchase journey and when customers make changes to their policy. Initial testing indicates it could reduce the time customers spend managing their insurance by around 40 per cent.

“We will continue to develop Motivo in a focused and responsible way, and our people will remain central to delivering the service and supporting customers where specialist expertise and judgement are needed.”

Darren Hardman, CEO, Microsoft UK & Ireland, said: “1st Central is showing real vision by embedding AI across the motor insurance journey, making the process faster, simpler and more responsive, while keeping expert support available when customers need it. By reducing the time spent buying and managing a policy and providing support around the clock, Motivo will give customers greater convenience, control and choice.”

Steve Dukes, CEO at Confused.com, comments: “Motivo is an exciting move in the insurance industry, and we’re delighted to be chosen by 1st Central to bring this proposition to our customers.

“Using AI to support a customer when handling everyday tasks like managing their policy removes friction for everyone involved.

“Motivo is a great example of how insurers can be utilising technology and data to better improve experiences for customers - something which is at the core of what we do at Confused.com.”