2026-08-11 · Source: Carrier Management
Summary in 3 Points • Insurers face scrutiny as only 43% of consumers trust them to use AI responsibly • 85% of consumers in 2026 expect insurers to disclose AI use in interactions • 39% of consumers lack confidence in AI's ability to handle information securely --- The insurance industry is navigating a complex phase of AI implementation, with consumer trust being a significant concern. Only 43% of consumers trust insurers to use AI responsibly, points to the need for transparency and clear communication. By 2026, 85% of consumers expect insurers to disclose when AI is used in customer interactions, making transparency a business imperative. Additionally, only 39% of consumers are confident in AI's ability to securely handle their information, indicating a trust gap that insurers must address. Insurers are encouraged to use AI thoughtfully, ensuring it adds value and is accompanied by human oversight when necessary.
The London insurance market could be impacted by the growing demand for transparency in AI usage. Underwriters and brokers may need to adjust policy wordings to include AI disclosure requirements, reflecting consumer expectations. Pricing strategies might also evolve as insurers invest in AI governance and data protection measures to build trust. Additionally, claims processes could be influenced by the need for human oversight in high-stakes decisions, affecting operational efficiency and resource allocation.