Insurers advised to use internal data to build AI trust

Analysts suggest that insurance companies can increase consumer trust in artificial intelligence by prioritizing customer-specific data over publicly available information. Using third-party public data for analytics can lead to privacy concerns and erode trust, as customers may worry that insurers are misinterpreting sensitive information or drawing inaccurate conclusions about their operations.

Olive Lam, senior vice-president at Lockton Companies LLC, recommends that insurers rely on direct information such as historical claims, internal risk assessments, loss-control records, and facility characteristics. Combining these with internal databases can improve the reliability and relevance of AI analysis.

A report from Smart Communications LLC noted that only 38% of consumers found AI helpful during insurance interactions, while 84% requested disclosure when AI is being utilized. Experts, including Oki Stefanus of EY-Parthenon Indonesia Strategy & Transactions, emphasized the necessity for insurers to establish robust governance frameworks and transparency to successfully integrate AI across operations.