The increasing use of technology and data by insurers could impact consumer trust

The Chartered Insurance Institute has released a report on how the increased use of technology and data in the insurance industry is impacting consumer confidence.

Author Shang Miry says technology and data pose new challenges to long-standing trust issues for insurers, requiring the attention of companies of all shapes and sizes.

She said the insurance industry has been enthusiastic about the use of robotic process automation and artificial intelligence, but worries that “hands-on experience with AI does not always bring trust.”

Consumers have been dubbed a “tech rush,” in line with other sector experiences stemming from issues such as wrongful arrests, sexist hiring, and ineligibility.

Her IT leader at Financial Services is already questioning the further adoption of technology.

A significant proportion of professionals fear potential bias or blame for decisions made automatically by technology.

Lack of data literacy in organizations is a major obstacle to building consumer trust, according to Millie, who believes standards, structures, and regulations cannot evolve at the same pace as technology adoption.

She has found in previous research that some pricing activities perpetuate and exacerbate social inequalities among insurance customers, including “uneven (unfair) impacts on low-income earners”.

The idea that fintech itself is key to customers’ financial resilience is not supported by the data,” he added. There are signs in both directions, but there is little avenue for stronger consumer protection.”

Millie said “trust and competitiveness” will be key battlegrounds for many sectors, including insurance, in the 2020s. concluded. You can lose confidence for your business,” she concluded.

Poor digital experiences have historically had a negative impact on insurance customers in the UK.

Originally published at https://businessdor.com on February 6, 2023.