Chinese consumers most receptive to AI-driven premiums

Australians were the least receptive.

The insurance industry in 2025 will be shaped by artificial intelligence (AI), especially with 43% of global consumers comfortable using AI tools to determine premiums, GlobalData revealed.

For the year ahead, the industry will mainly be affected by AI, environmental, social, and governance (ESG) considerations, and cyber risk management.

Insurers are expected to leverage AI-driven solutions, expand personal cyber coverage, and integrate technologies such as electric vehicles (EVs) and the Internet of Things (IoT) to meet evolving consumer demand.  

Chinese consumers showed the highest acceptance, whilst Australians were the least receptive, GlobalData’s 2024 Emerging Trends Insurance Consumer Survey. AI is also seen as an effective tool for customer service, reducing reliance on traditional communication channels.  

ESG remains a priority, with 51.3% of consumers believing insurers have a role in addressing climate change, whilst 20.6% were undecided.

However, ESG-focused insurance products remain limited, with current efforts largely centered on long-term targets and individual initiatives.  

Cyber insurance continues to be a major theme, though personal cyber insurance remains less developed than commercial policies. 

The survey found that 26.4% of consumers were interested in personal cyber coverage, with demand highest amongst 18 to 24-year-olds at 36.7%.

Insurers see an opportunity in this market, though pricing and underwriting challenges remain.  

The transition to EVs is also gaining traction, with 31.6% of combustion vehicle owners planning to switch within two years and 67.7% within a decade.

Additionally, 54.5% of consumers are open to purchasing insurance directly from manufacturers, posing both competitive threats and collaboration opportunities for traditional insurers.  

IoT is becoming increasingly relevant, particularly in motor and health insurance.
The survey found that 37.8% of consumers use activity trackers for daily health monitoring, highlighting opportunities for insurers to develop personalised, rewards-based programmes.  

Ben Carey-Evans, senior Insurance analyst at GlobalData, noted that the shift toward EVs requires new approaches in underwriting and risk assessment, whilst IoT presents opportunities for data-driven personalisation.

Insurers that adapt to these trends are expected to enhance customer engagement and remain competitive.