How Insurers Can Win Back Consumer Trust in AI-Driven Claims

Property and casualty insurers are investing heavily in artificial intelligence to speed up operations, cut costs, and enhance service delivery. But for all the technological progress, many consumers are skeptical about AI’s growing role in insurance. A key reason for this distrust is a lack of transparency: customers often don’t understand how AI affects their coverage, claims, or pricing, and they fear depersonalized or unfair treatment.

To address this concern, insurers must shift their communication strategies. Rather than relying on buzzwords like ‘innovation’ or ‘digital transformation,’ companies should offer specific, relatable examples of how AI tangibly benefits policyholders. Whether it’s using satellite data to authorize storm repairs faster or adjusting premiums based on proximity to new emergency services, these clear explanations can help bridge the understanding gap.

One of the most effective tools for building trust is explainable AI (XAI), which offers transparency around how decisions are made. By showing customers how data specific to their property, risk profile, or behavior informs claims or pricing, insurers can replace suspicion with clarity. Consumers are more likely to accept AI when they see it working for them—not against them.

Ultimately, the industry must embrace a new communication imperative: always show how AI helps the customer. Every message about AI should answer the core consumer question, ‘What does this mean for me?’ When insurers communicate in this way, they can unlock the full value of their AI investments while earning the trust of their policyholders.