ILC ARTICLE

Trust no longer ‘nice to have’ outcome for insurers


The EY Global Insurance Outlook 2024 has highlighted how trust and transparency is becoming ever-more critical to insurers in an increasingly turbulent and competitive market.

It says trust has eroded due to a number of factors, including insurers exiting high-risk sectors, rejecting business disruption claims during Covid, and failing to digitalise processes.

However, over and above ‘brand trust’, it argues that trust must be founded on a more functional basis – value for money for policyholders, a commitment to ESG, and regulatory compliance. This will enable insurers to become partners rather than just providers.

EY said, “The goal is to build trust in every stakeholder interaction and instil transparency as the animating force behind everyday operations across the enterprise.”

Straining trust still further is the introduction of new technologies such as AI, and insurers have been urged to focus on transparency in every AI-driven process, particularly when sensitive customer data is involved.

“The main objective is to prevent bias and unfair outcomes in coverage, pricing and claims decisions,” EY said.

Insurers can further engender trust by developing products tailored to climate and cyber risks, as well as the growing number of gig workers, while also promoting a diverse workforce.

The report concluded, “Trust can no longer be viewed as a secondary, ‘nice-to-have’ outcome for branding and public relations efforts; rather, it must be an essential element of the organisational vision and mission, a living, breathing part of the culture, and an animating force behind everyday operations across the enterprise.

“Trust can even help insurers generate stronger returns on technology investments and strengthen relationships with customers seeking new solutions and new ways to engage.”

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