Only 43% of consumers trust their insurers to use AI responsibly in ways that benefit them, according to recent survey data. That trust gap is forcing insurance companies to rethink how they deploy the technology - not just whether they deploy it.
For insurers, AI has moved from experimentation into the implementation phase. But consumers are now scrutinizing how the technology is used and what impact it actually has on their experience. The challenge isn't simply adopting AI; it's using it in ways that reassure policyholders and restore confidence in an industry built on trust.
Transparency is now a business requirement
Policyholders share sensitive personal and financial information with insurers, and they expect to know when AI is touching that data. According to the source data, 85% of consumers say insurers should disclose when they use AI in customer interactions.
That expectation makes transparency a business imperative, not a best practice. Insurers should be clear about where AI enhances the customer experience, what role it plays, and when a human will step in. Setting those expectations upfront gives policyholders visibility while reinforcing confidence that the technology is being used thoughtfully.
Proactive communication about AI use reduces uncertainty. People are more comfortable when they know what to expect, and that comfort strengthens the customer relationship over time.
Deploy AI where it adds value, not everywhere
Transparency alone isn't enough. Insurers need to be intentional about where and why they use AI in customer communications. Recent data shows that 38% of consumers find AI-powered tools helpful in resolving questions or completing tasks, while 48% believe a human should always review content suggested by AI.
AI can make a positive difference in specific areas:
- Accelerating response times
- Providing more accurate information
- Summarizing and explaining complicated language
- Improving personalization of communications
Knowing where not to use AI matters just as much. High-stakes communications - specific claims, coverage disputes, policy changes - require human expertise, judgment, and empathy. In those moments, insurers must make it clear that an expert will take control.
When used thoughtfully, AI lets teams spend less time on administrative tasks and more time on complex decisions and customer relationships. It should never take over the insurer-policyholder relationship completely. For communications professionals working in insurance, this is where the AI for PR & Communications conversation starts: knowing which interactions to automate and which to keep human.
Security and governance close the trust gap
Safety and security remain among policyholders' biggest concerns. Just 39% of consumers are confident in AI's ability to handle their information securely, highlighting a significant trust gap for insurers to close.
Building that trust starts with clear communication about how customer data is protected, what safeguards are in place, and how sensitive information is handled throughout every interaction. When those protections are visible, policyholders can be reassured that AI is being used responsibly.
Effective AI governance requires defining clear guardrails around how the technology operates. Organizations need to establish what data AI can access, what actions it is authorized to take, and where human oversight is required - especially with sensitive information. When those guardrails are built in from the outset, insurers can innovate with confidence.
These governance questions are central to AI for Insurance teams, where the stakes of getting implementation wrong are measured in customer trust and regulatory exposure.
Why this matters for PR and communications professionals
For communicators in insurance, the data points to a clear mandate: your job now includes translating AI governance into customer-facing language. The 85% of consumers who want AI disclosure won't read technical documentation - they'll read your emails, your claims updates, and your policy change notices.
That means drafting disclosure language before regulators require it, building communication plans that explain when AI is assisting and when a human is in charge, and preparing crisis messaging for when AI makes a visible mistake. The insurers who earn trust will be the ones whose communications teams treat AI transparency as a core responsibility, not an afterthought.
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