Issue Insurance: personalisation raises the trust threshold

Summary

EY describes trust as existential for insurers, because what they sell is a promise about the future. Customers will only share the personal data that tailored offers depend on, such as risk profiles, health information and behavioural patterns, with companies they trust. As AI makes highly personalised pricing and coverage possible, the exchange of data becomes more intimate and the level of trust required goes up with it. Insurers that cannot earn that trust face a structural disadvantage as customers move to brands they believe in. Less trusted carriers risk being pushed to the back end of the market, supplying commoditised risk capacity instead of acting as trusted advisers.