Nearly half of UK small and medium-sized enterprises remain unconvinced by AI-generated insurance quotes, according to GlobalData's 2025 SME Survey. The findings show that 48.9% of respondents said nothing would improve their confidence in an insurance quote determined by an AI tool, a signal that insurers face a trust barrier as they automate customer-facing decisions.
The survey, which examined SME attitudes toward AI in insurance pricing, found that 28.9% of respondents would feel more confident if tighter legislation regulated AI use in insurance. Another 27.7% said having the option to be referred to a human insurance agent if they were unhappy with an AI-generated quote would increase their confidence.
The trust gap in AI-driven pricing
AI offers clear efficiency gains across the insurance value chain, from underwriting to claims processing. But the technology's role in decisions that directly affect customers - particularly premium pricing - has created a credibility problem that insurers cannot ignore. The GlobalData figures suggest that transparency and safeguards will determine how quickly customers accept AI in these processes.
The Financial Conduct Authority's focus on good customer outcomes means insurers must be able to explain and evidence how AI systems reach decisions, especially in personal lines pricing. According to the co-founder of INSTANDA, insurers should prioritize AI governance over the speed of adoption.
Where AI adoption is likely to move faster
AI adoption will likely progress more quickly in lower-risk applications, such as back-office automation and claims triage. In decisions that directly affect customers, however, insurers will need greater oversight, explainability, and human involvement. This distinction matters for teams planning AI rollouts: the technology itself is rarely the limiting factor. Governance and customer trust are.
For insurance professionals working with AI for Insurance, the survey underscores a practical point: successful adoption depends on more than model accuracy. Insurers that establish clear governance frameworks and maintain human involvement in consequential decisions will be better positioned to build customer confidence. Those that don't risk regulatory scrutiny and customer attrition.
Building confidence through safeguards
The 27.7% of respondents open to a human referral option represents a meaningful opportunity. These customers are not opposed to AI-generated quotes outright - they want a safety net. Providing understandable explanations of how AI is being used, along with an accessible path to a human agent, could convert this group into willing participants in automated processes.
For leadership teams, this connects directly to strategic planning around AI for Executives & Strategy. Governance choices made now will shape both regulatory exposure and market reputation as AI becomes embedded in pricing and underwriting workflows.
Why this matters for insurance professionals
If you work in insurance pricing, underwriting, or product development, the GlobalData findings give you a concrete benchmark: roughly half your SME customers are skeptical of AI-determined quotes, and no amount of model performance will change that on its own. The path forward involves documenting how decisions are made, keeping humans in the loop for consequential outcomes, and giving customers a straightforward way to escalate to an agent. These measures protect both customer relationships and regulatory standing as AI adoption accelerates.
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