esure Group has published its half-year update for the six months ended 30 June 2024, highlighting the successful completion of its digital transformation in the first quarter.

The company announced that in the second quarter it migrated 1.8 million policies, over one billion policy data points and 248,000 claims to a new scalable, flexible, cloud-native platform and completely decommissioned its legacy technology.

esure stated that this digital transformation provides a solid foundation for an improved customer experience and profitable growth. A cautious trading approach during the final phase of the system migration resulted in a reduction in policy numbers in the first quarter, with growth resuming in the second quarter.

esure also reported revenue of £540.5 million for the first half of the year, up 17% on the same period last year. The company also observed signs of stabilisation in the claims environment, although pricing continues to reflect elevated inflation.

The update indicated an improvement in the loss ratio for 2023 and the first half of 2024, coupled with a stable loss environment, contributing to strong profitability in the first half of 2024. esure also reported a strong balance sheet with stable loss provisions for the prior year and strengthened solvency coverage since December 2023.

David McMillan (pictured above right), CEO of esure, commented on the completion of the company’s digital transformation program, noting that it represents an important milestone.

By migrating all customers to esure’s cloud-native platform, the company can now focus on fully leveraging the platform’s potential, enhancing the customer experience and driving operational improvements to support future growth.

McMillan also pointed to the development of advanced data science and analytics capabilities using machine learning and artificial intelligence that are being deployed across the company.

Despite difficult market conditions, esure has maintained its focus on pricing, underwriting and claims management, according to the CEO, which has led to improved profitability and a positive development in new business.

What’s next for esure?

Looking ahead, esure also reiterated its commitment to achieving better customer outcomes and greater operational efficiency through digital transformation.

The company plans to expand the strategic use of data science and generative AI across the business, which should bring additional benefits. The improved data platform is also transforming esure’s pricing capabilities, enabling quick and accurate responses to market changes.

Although there are initial signs of stabilisation in the claims environment, esure stated that it intends to continue to pursue a disciplined approach to pricing and risk assumption and is committed to long-term growth.

The company expects to return to strong profitability in 2024, with the majority of non-trading transformation program costs now behind it. McMillan expressed confidence that the company will maintain its growth trajectory and continue to improve the customer experience throughout the rest of the year.

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