The insurance industry has undergone huge transformation as consumer confidence in internet-based services has risen. Consumer trends in insurance have led to policies being easier to compare, purchase, and manage . With increasing competition from direct insurers and marketplaces, many insurance firms are investing in technology to help streamline operations, personalise services, and build trust.
Digital innovations are redefining how insurance companies engage with, and deliver value for their customers. In this blog, we’re taking a look at the biggest trends, from AI-driven risk assessments to blockchain-enhanced security, as well as how insurance customer insights from review platforms can help businesses stay ahead.
Insurance brands are adopting digital-first customer experiences
Before the internet made access to providers easier, taking out an insurance policy took a lot longer – especially for specialist cover, or getting quotes from multiple providers. Since comparison sites made it easier to identify which company had the best cover at the best price, insurance firms have had to improve their offering.
That’s why a major insurance industry trend is for businesses to enhance their customer journey with individual platforms for people to manage their insurance needs. Chatbots and virtual assistants? They’re just the first step.
The rise of insurtech innovations
Insurtech – insurance technology – refers to the use of digital innovations to enhance and streamline operations in the insurance industry. It encompasses technologies such as:
- Artificial intelligence
- Machine learning
- Blockchain
- Internet of Things (IoT) and telematics
- Big data analytics
These insurance technologies help to improve risk assessment, automate claims processing, and deliver more personalised insurance products. With these advancements, businesses can transform traditional insurance models, make operations more efficient, serve customers better, and ensure they can continue to adapt to consumer trends.
AI and machine learning in the insurance industry
Businesses in every sector are using AI – and it is widely recognised those that don’t make use of it are likely to get left behind.
In the insurance industry, AI is being used extensively for:
- Creating more accurate risk assessments and personalised pricing
- Identifying suspicious patterns and activities to reduce the risk of fraudulent claims
- Providing more efficient customer service
- Gaining access to consumer trends in insurance, such as in customer feedback
However, businesses need to use AI carefully, and not simply relying on commercially available data sets. Robert Trueman, CTO at CDL, says:
“In sectors that are highly regulated, such as insurance, accuracy and accountability in the use of data are paramount.”
Michael Bruch, Global Head of Risk Consulting Advisory Services, Allianz Commercial, supports Robert’s statement:
“AI enables insurers to enhance their value proposition by better predicting and therefore preventing risks… AI depends on having good-quality data. We are constantly evolving and expanding our data quality across the business at Allianz, to train the models we use.”
As AI technology continues to advance, its role in shaping digital trends in insurance will only grow, making it an essential tool for insurers looking to stay competitive.
Blockchain is helping to reduce risk and build trust
Blockchain is enhancing the insurance industry by helping to improve transparency, security, and efficiency. By decentralising and tamper-proofing the ledger, blockchain reduces fraud, streamlines claims processing, and automates contract execution.
“Blockchain technology could completely upend the insurance value chain… Use of blockchain should help to cut acquisition, management, documentation and compliance costs. It should help new players enter the market and new markets to emerge, particularly in developing countries. By simplifying use and increasing transparency, it will also help to improve customer satisfaction.”
- Pauline Adam-Kalfon, Insurance Director at PwC France
Insurers can use blockchain technology to verify customer identities, securely share data across stakeholders, and ensure policy terms are met without manual intervention. This aligns with other digital trends in insurance, helping to improve trust and reduce administrative costs, for a better customer experience.
Internet of Things and telematics
The Internet of Things (IoT) and telematics are transforming insurance by providing real-time data that enhances risk assessment and pricing accuracy. Connected devices such as smart home sensors, wearable health trackers, and in-car telematics allow insurers to monitor behaviour, predict risks, and offer personalised policies. Examples include usage-based car insurance rewards safe drivers with lower premiums, and smart home technology helps prevent damage by detecting leaks or fires early.
“IoT enables insurers to enhance their value proposition by better predicting and therefore preventing risks”
- Michael Bruch, Global Head of Risk Consulting Advisory Services at Allianz Commercial
By leveraging IoT technology and telematics, insurers can shift from reactive claims processing to proactive risk management, which leads towards improving customer experience and reducing costs.
Insurance customer insights from big data
Big data is helping insurance firms to access deeper insurance customer insights and to use those insights to inform their products and service. By analysing vast amounts of structured and unstructured data – from customer interactions to IoT-generated information – insurers can better understand risk, personalise policies, and enhance experiences.
Predictive analytics help identify trends in claims, detect fraudulent activity, and optimise pricing models. As other consumer trends in insurance continue to evolve, big data enables insurers to anticipate customer needs, improve engagement, and deliver more tailored, data-driven services.
Increasing demand for ESG investments
Customers are increasingly conscious of where they put their money – even when it comes to buying insurance. Research shows that almost half of UK consumers would pay higher premiums to insurers with a proven track record for sustainability, while another 10.2% are willing to take it into consideration.
As a result, insurers are integrating Environmental, Social, and Governance (ESG) principles into their business models, offering policies that align with sustainability goals. This includes incentivising green initiatives, such as discounts for electric vehicle insurance or coverage for eco-friendly home improvements. Additionally, insurers are using ESG criteria to guide their investment strategies, ensuring funds support ethical and sustainable businesses.
Transparency is also important here though. Customers want clear, verifiable commitments to sustainability, not just greenwashing – and environment isn’t the only thing they’re concerned about. Other key areas of concern include:
- Responsible investment
- Responsibility in supplier selection and relations
- Supply chain monitoring
- Commitments to human rights principles
Insurers that proactively report on their ESG initiatives, engage in responsible investing, and demonstrate a genuine commitment to social and environmental responsibility are more likely to attract and retain ethically-minded consumers.
Importance of brand reputation management for insurance companies
Brand reputation isn’t just about looking good – it’s about building trust and credibility with customers. Insurance companies must demonstrate reliability, transparency, and a commitment to delivering excellent service. Without confidence in your business, potential customers will simply look elsewhere for coverage.
Whether consumers are seeking personal insurance or business policies, they will research providers before making a decision. This means online reviews, testimonials, and independent ratings play a crucial role in shaping perceptions. A strong reputation can differentiate your company in a competitive market, while negative feedback – especially if left unaddressed – can drive potential customers toward competitors.
Proactively managing your brand reputation involves more than just collecting reviews. Engaging with customer feedback, resolving complaints efficiently, and showcasing positive experiences all contribute to a trustworthy image. Verified review platforms, such as Feefo, ensure authenticity and allow insurers to demonstrate a commitment to customer satisfaction.
Additionally, consistent communication, ethical business practices, and a clear demonstration of corporate responsibility – such as ESG commitments – help reinforce a positive brand reputation. In an industry where trust is everything, maintaining and actively managing your reputation can be the key to long-term success.
How Feefo, the verified insurance review platform helps insurers stay ahead
Feefo’s verified review platform helps insurers harness the power of authentic consumer insights, ensuring they stay ahead – and we’ve been supporting insurers for more than 20 years. Here’s how.
Meeting Consumer Duty requirements with verified reviews
The FCA’s Consumer Duty emphasises putting customer needs first across four key areas: Products and Services, Price and Value, Consumer Understanding, and Consumer Support.
Verified reviews support compliance by providing genuine customer feedback, particularly in the areas of Consumer Understanding and Consumer Support. With Feefo, insurers can gather actionable insights from real policyholders, ensuring communications are clear, customer needs are met, and necessary improvements are made. The ability to follow up on reviews strengthens consumer support, demonstrating a proactive approach to compliance.
Read more about how Feefo verified reviews helps financial services business remain compliant with Consumer Duty.
Boosting consumer trust and engagement
Trust is the foundation of a strong insurance brand. Feefo enhances consumer confidence by ensuring only verified policyholders can leave feedback, eliminating fake reviews and reinforcing credibility. Engaging with customer reviews – both positive and negative – demonstrates transparency and a commitment to customer satisfaction.
AI-driven sentiment analysis helps insurers identify emerging concerns and opportunities, allowing for proactive service improvements. Meanwhile, Feefo’s advanced analytics provide deep insights into consumer expectations, helping businesses build long-term customer relationships.
Enhancing business intelligence and insurance customer insights
Feefo delivers powerful business intelligence, enabling insurers to make data-driven decisions that enhance customer experiences and optimise operations.
By collecting verified feedback, insurers gain authentic insights into policyholder sentiment, helping identify trends, service gaps, and areas for improvement. There’s functionality to identify recurring themes and customer concerns, allowing for targeted adjustments that improve retention and satisfaction.
With Analytics Essentials, insurers can monitor performance through curated reports and data visualisations, ensuring they stay ahead of industry trends and customer expectations.
Brand reputation
Building a strong reputation is critical in the insurance industry. Feefo helps insurers build and protect their brand by ensuring all reviews come from genuine customers, safeguarding credibility and trust.
Publicly responding to reviews shows accountability, while AI Replies help you to streamline responses at scale. Addressing concerns transparently reassures potential customers and highlights a business’s commitment to continuous improvement.
Additionally, as we’ve already highlighted, sentiment analysis provides insurers with early indicators of brand perception, helping mitigate risks before they escalate.
Insurance industry trend: dual review collection strategy
Trust is the foundation of the insurance industry, and in a digital-first landscape, customer reviews play a critical role in reinforcing credibility. Consumers researching insurance providers expect to see consistent, verified feedback before committing to a policy. That’s why insurers are increasingly using both verified and open review platforms to strengthen their reputation, comply with regulations, and engage with a wider audience.
Verified reviews for compliance and reliability
Regulatory requirements, such as the FCA’s Consumer Duty, mandate that insurers prioritise customer needs. Verified review platforms like Feefo help insurers collect feedback exclusively from genuine policyholders, ensuring compliance while also providing actionable insights to improve service quality. Authentic, verified reviews help mitigate the risks associated with fake or misleading feedback.
Utilising an open platform as a secondary way to collect reviews means that insurers can monitor what people who haven’t become customers say about their business. Perhaps the person got a quote, but chose to insure with another provider due to a better price, or perhaps the service they received wasn’t as good as they’d have liked. Or, perhaps the person did take out a policy, but want to feed back their experience anonymously.
Open platforms for additional visibility
While verified platforms offer credibility, insurers must also consider how they appear on open review platforms like Google Reviews and Trustpilot. Customers will leave feedback on these platforms whether insurers actively manage them or not. A dual strategy enables insurers to:
- Respond to customer concerns publicly, showing accountability and a commitment to service improvement.
- Monitor sentiment across a broader audience, helping identify industry trends and emerging issues.
- Engage with potential policyholders, who often use open review platforms to compare insurers.
- Enhance SEO efforts, by increasing the number of high-quality, relevant reviews linked to your business across multiple authoritative sites, boosting your credibility and ensuring the brand appears in more customer searches.
Dual reviews to strengthen consumer confidence
Insurance decisions often involve long-term commitments, making trust a deciding factor. A combination of verified and open review platforms reassures customers that feedback is genuine, responses are proactive, and the company is committed to transparency. This strategy not only supports regulatory compliance but also enhances customer retention and acquisition.
By leveraging a dual review collection approach, insurers can maintain credibility, expand their reach, and build stronger customer relationships in an increasingly competitive market.
Embracing innovation for a future-ready insurance industry
The digital transformation of the insurance industry continues to accelerate, with AI, blockchain, IoT, and big data reshaping how insurers interact with customers and manage risk. As consumer expectations evolve, staying ahead of these trends is essential for delivering seamless experiences, building trust, and maintaining a competitive edge. Insurers that embrace innovation, prioritise transparency, and actively engage with customer feedback will be best positioned to thrive in this fast-changing landscape.
Want to stay ahead of the latest digital trends in insurance? Start by leveraging verified customer reviews to build trust and improve your services. Explore how Feefo’s AI-driven insights and review platform can help your business enhance customer engagement and maintain compliance.
Book a discussion about how Feefo can help your business today.
