Insurers are trying to attract younger customers and use artificial intelligence (AI) to enhance their services, but they are facing a significant hurdle: trust. A recent study by GlobalData highlights that many young people, particularly from Generation Z and millennials, are skeptical about insurance companies and the technologies they use.
In early 2025, GlobalData conducted a poll with 174 participants, revealing that more than half of them felt unsure about insurance. They cited a lack of trust and confusion as major obstacles to engaging with insurers. Many young consumers only encounter insurance through mandatory products like auto policies, which has left them questioning the overall value and transparency of the industry.
Ben Carey-Evans, a senior insurance analyst at GlobalData, emphasized the need for insurers to improve their engagement with younger audiences. He noted that rising premiums in certain areas are not helping the trust issue. To turn things around, insurers must show clear value and enhance customer engagement.
The trust problem extends to AI as well. A separate GlobalData survey from 2024, which included over 5,500 participants across 11 countries, found that while many people see the efficiency benefits of AI, they also have concerns about fairness, bias, and data privacy. Beatriz Benito, the lead insurance analyst at GlobalData, pointed out that even though satisfaction with AI tools like chatbots is high—about 74.5% of users reported positive experiences—this hasn’t led to widespread acceptance. Consumers often feel that AI technology is not yet reliable enough for broader use.
Transparency is crucial when it comes to AI in insurance. Many consumers want to understand how algorithms make decisions, especially regarding claims. Benito stressed that insurers need to be open about their AI-driven processes, particularly for those who worry about bias or have privacy concerns.
To build trust, insurers must also focus on making their policies clearer and educating customers better. Simplifying product terms and improving communication could help ease the worries of younger consumers. Both analysts agree that while younger people are comfortable with technology, they expect transparency and meaningful interactions, whether with a human or a digital tool.
Carey-Evans concluded that improving trust and understanding in the insurance industry requires more than just better marketing. Insurers need to actively engage with customers, simplify their offerings, and provide value where possible to encourage acceptance and loyalty.