Agentic AI systems may be able to switch insurance providers and perform other transactions across retail financial services with delegated authority by 2030, according to a report from the UK industry regulator.

This will “change who shapes the consumer journey”, the Financial Conduct Authority says. AI agents could become “powerful gatekeepers”, influencing what consumers see, which products are compared and how choices are framed.

Only 30% of UK adults hold life or income protection policies, and the FCA says a personal agent with a fuller view of a consumer’s circumstances could reduce “inertia” and identify gaps, explain options and prompt people to consider cover at relevant times – a “powerful consumer benefit”.

“AI agents could help deliver good outcomes that do not depend on consumers having higher capability and engaging constantly,” the report says. “If designed well, they could help those who are less financially capable, time-poor or less confident to review decisions more regularly and secure outcomes that currently require too much effort for such consumers.”

People may allow agents to monitor their finances and execute tasks such as managing subscriptions – delegating most ongoing action to AI while signing off on changes at key points or reviewing activity logs of what the tech has done for them.

“In practical terms, a consumer might begin by asking an AI agent whether they are paying too much for insurance. The agent could explain the policy, compare alternatives, identify exclusions and later switch the consumer to a better product within limits they have set.

“The consumer may still be in control, but the work of understanding, comparing and acting has shifted away from them.”

The FCA says this could make markets more competitive if AI highlights better options. But it could also weaken direct relationships between consumers and companies, reduce brand loyalty and introduce new commercial incentives.

“These benefits depend heavily on how these agents are designed, governed and embedded within markets.”

The FCA says if consumers ask an embedded AI agent to identify an insurance product, the insurer’s own interface “may become less central”.

“Competition could then depend increasingly on firms’ access to the operating system ecosystem. The competition risk is therefore platform gatekeeping: the operating system provider may control access, defaults, ranking and commercial terms.”

See the report here.