Artificial Intelligence (AI) is no longer a distant concept for the insurance industry. It has moved from being an emerging innovation to a mainstream enabler, supporting multiple stages of the insurance value chain, including underwriting and claims management.
However, as the 2025 Guidewire European Insurance Consumer Survey highlights, widespread acceptance of AI does not automatically translate into trust. To unlock the full potential of this technology, insurers need to address not only performance, but also transparency, empathy, and the human dimension of decision-making.
Growing familiarity, growing expectations
The Guidewire survey shows a remarkable rise in AI usage among European consumers. In 2025, 33% of respondents report using an AI tool at least once a week, up from 21% just a year ago. Meanwhile, those who have never interacted with AI have dropped from 40% to 28%. Adoption is highest among younger generations: 59% of 18–24-year-olds and 53% of 25–34-year-olds use AI weekly, but even 42% of those aged 35–44 are regular users. This growing familiarity signals a more receptive market for AI-enabled services.
Importantly, greater exposure to AI is correlated with increased comfort when insurers use the technology. For example, the share of consumers comfortable with AI setting policy prices without human intervention rose from 31% in 2024 to 37% in 2025. Acceptance is even higher among those who use AI every day (73%). Similarly, comfort with AI settling claims has grown to 33% overall, but rises to 69% among daily AI users. These figures underscore a clear trend: The more consumers experience AI, the more they trust it to play a meaningful role in insurance.
The trust gap: where consumers draw the line
Despite these positive developments, a significant trust gap remains. Consumers still want assurance that AI will be applied responsibly. The survey reveals that 40% of customers would feel more confident in insurers’ AI if decisions could always be referred to a human when challenged. This human-in-the-loop requirement is essential to avoid the perception of cold, opaque automation.
Interestingly, hostility toward AI is beginning to soften. The proportion of respondents saying “nothing could give them confidence” in insurers using AI has fallen from 29% in 2024 to 24% in 2025. Germany, often seen as skeptical of technological innovation, recorded the most dramatic drop in hostility, from 26% to 17%. Spain also shows growing openness: Comfort with AI supporting human call handlers has risen from 44% to 51%.
These findings confirm a vital point: Insurers have an opportunity to build deeper trust, but they must prioritise how AI is perceived, not just how it performs.
Beyond efficiency: empathy and sentiment matter
At EY, we see the insurance sector reaching a pivotal moment. Generative AI has already demonstrated its ability to boost efficiency, reduce costs, and enhance personalisation. However, the next wave of value creation requires focusing on two key attributes:
1. Sentiment analysis in conversations – Insurers need AI that can understand customer emotions and intentions in real time. From claims calls to digital chats, the ability to detect frustration, urgency, or reassurance needs is critical to providing empathetic service. This is not only about better outcomes; it is about reinforcing the human side of insurance.
2. Trust and transparency – Customers want clarity on how their data is used and confidence that AI-driven decisions are fair. Insurers that proactively explain AI processes, allow human override, and demonstrate accountability will be the ones to gain long-term loyalty.
Unlocking AI’s full potential in insurance
The industry is at a crossroads. The Guidewire survey shows that consumer resistance to AI is reducing, especially among younger generations who are shaping the future customer base. But trust cannot be assumed; it must be earned.
To achieve this, insurers should focus on:
* Embedding human oversight into all AI decision-making.
* Deploying sentiment-aware AI to improve customer interactions.
* Communicating clear, transparent explanations of AI-driven outcomes.
* Using AI not just to streamline processes, but also to enhance customer confidence and empathy.
The trajectory is promising. With careful attention to trust and human-centric design, insurers can leverage AI to revolutionize the value chain and deliver a new era of confidence, personalisation, and resilience.