Swiss Re says it is vital that insurers build “digital trust” as access to consumer data is the key component behind risk analytics and automation capabilities. 

Insurers should be mindful that this trust is influenced by cultural and generational attitudes, trust in institutions, incidence of online fraud, ease of use and understanding of technology such as Artificial Intelligence. 

Pervasive use of AI will make new demands on consumer psychology, Swiss Re says, and while the opportunities are considerable, this “will require empathy”.  

“Gut feelings, cultural heritage and environmental markers are factors as strong in decision making as clear thought. All are required for trust,” it said in a new “Decoding digital trust” report. 

The report found that countries with advanced levels of digital infrastructure have relatively little trust in AI. 

Germany, France, the UK, Canada and the US were in the top 20 most prepared for AI out of 120 countries in the study, though trust in this technology was comparatively low in advanced digital economies, with only a third of respondents on average in each country understanding and trusting AI. 

The most AI-trusting people were in emerging digital growth markets such as India, Nigeria, Mexico, Indonesia, Philippines and Argentina. 

“This really underlines how important it is to be transparent with customers, truly understand their needs and deliver on them. The safety, security and efficiency of online engagements is paramount, especially in the insurance industry where customer relationships are built on trust,” Group Chief Digital & Technology Officer Pravina Ladva said. 

The report examines leveraging real-time data to create hyper-personalised offerings and addressing ethical and societal concerns surrounding data usage. 

Fusion of the digital and physical worlds – via technology such as sensors and AI or automated decision-making – is redefining the traditional boundaries in insurance, it says, and insurers need to successfully cultivate a solid foundation of digital trust as cultural diversity and varying backgrounds for consumers increases. 

Amid a rapidly expanding role of AI applications in insurance, insurers need to be sure trust is not compromised and develop strategies that foster consumer trust while promoting data sharing, with a shift toward rewards to aid this transformation. 

"To foster digital trust in insurance, much can be done in establishing transparency and effectively engaging with customers at every relevant touch point. The findings of this report are a call for insurers to think about their customers' gut feelings and how they can work with them to establish digital trust,” CEO of Swiss Re’s digital B2B2C insurer iptiQ Rob Burr said. 

“The key is to leverage innovative technologies that offer seamless customer experiences and make every aspect of insurance as good as humanly possible." 

See the report here.