InsurTech4Good.com Weekly Newsletter – #20, 2025

This issue explores rising consumer comfort with AI in insurance, new EU regulatory consultations on AI and data use, and what the next Consumer Agenda could mean for digital financial services. Plus, a curious take on music, mood, and motor insurance.

Hope you enjoy the read!

Andres

P.S. If you're navigating InsurTech regulation, policy, or innovation—and think I can help—don’t hesitate to get in touch.

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Guidewire European Insurance Consumer Survey 2025

The number of customers who are comfortable with insurers using AI to decide the price of an insurance policy without human intervention has increased from 31% in 2024 to 37% in 2025. 

When it comes to AI being used to process and settle a claim without human intervention, there has been a slight increase in comfort in 2025 (33%) versus 2024 (30%), but the level of comfort is much higher amongst those that use AI every day (69%) and once to a few times a week (50%). 

Where there have been some more significant changes is in using AI to help a human call handler answer questions. 

While the overall picture shows only an increase in comfort from 41% to 44%, there have been more significant changes at a country level.

In the UK, comfort has increased from 30% to 39% and in Spain it has gone from 44% to 51%.

As customer comfort with insurers’ using AI grows, outright hostility to the use of AI may be slowly receding. 

For example, the number who say that nothing could give them confidence in insurers using AI has also fallen, from 29% in 2024 to 24% in 2025. 

The UK is the most sceptical country (34%), although this has fallen from 41% last year. 

Interestingly, the greatest fall in people with a hostile opinion is in Germany, typically viewed as a market sceptical of technological innovation, going from 26% in 2024 to 17% in 2025.

As highlighted in the report, better customer familiarity with AI presents an opportunity for insurers to integrate AI into their services, particularly for younger customer segments. 

But insurers do need to be aware of how customers want a human in the loop and must build trust in their use of data for AI. And I personally think this is really the key!

Read more here. 

EIOPA surveys European insurers on their use of generative AI

The European Insurance and Occupational Pensions Authority (EIOPA) has launched a new survey to assess the adoption of generative AI solutions across the EU’s insurance sector. 

The survey will gather insights both on the current state of implementation and future plans, as well as the governance frameworks that undertakings are developing to address the specific characteristics of this emerging technology.

Read more here. 

Impact of artificial intelligence on the financial sector

This report examines the use and impact of artificial intelligence (AI) in the financial services sector, assessing the current regulatory framework and providing policy recommendations to support AI adoption while clarifying regulatory overlaps.

Grounded in practical realities rather than speculative concerns, the report finds that AI is mainly used to improve efficiency rather than introduce high-risk innovation, with most applications involving human oversight and falling within a low-risk category.

Despite this, AI offers significant potential to enhance competitiveness, consumer services, and regulatory compliance, including in areas like anti-money laundering and fraud detection.

The report acknowledges key risks—such as data quality and explainability—but concludes that the sector's robust regulatory environment is well equipped to manage them.

It calls for continued monitoring, training, and AI literacy rather than restrictive regulation, warning that excessive caution could undermine innovation, competitiveness, and Europe’s position in the global AI race.

Read more here. 

Public consultation on the Data Use for AI

The European Commission is seeking views on the use of data in Artificial Intelligence, on simplifying the rules that apply to data and on international data flows to inform the forthcoming Data Union Strategy.

The Data Union Strategy will help the EU build high-quality, interoperable, and diverse datasets that are necessary for AI.

It should aim to streamline existing data rules, potentially creating a simplified, clearer, and more coherent legal framework for businesses and administrations to share data more seamlessly and at scale, while still upholding high privacy and security standards. 

Additionally, it may explore options to increase the availability of high-quality data, consider possible investments in data infrastructures, examine ways to use data to reduce administrative burden, and address the external aspects of data flows.

Read more here. 

EU Consumer Agenda 2025–2030 and its relevance for insurance and financial services

The European Commission has launched a public consultation to help shape the EU Consumer Agenda for 2025–2030.

The new consumer policy strategy aims to:

- ensure that consumers can fully benefit from the Single Market,

- strengthen the enforcement of consumer protection legislation,

- protect vulnerable consumers, and

- promote a fair green and digital economy.

The strategy outlines a series of measures planned for 2025–2030, including:

promoting digital fairness, improving consumer law enforcement, and

implementing an action plan focused on consumers in the Single Market.

Why this matters for insurance and financial services?

The initiative seeks to address persistent barriers that prevent consumers and businesses from fully benefiting from the Single Market. For example, delivery and payment restrictions continue to hinder cross-border online shopping, and the provision of cross-border services remains limited in several sectors—including financial services.

Moreover, the problem statement highlights that new technologies and data-driven practices are sometimes used to undermine consumer choice. 

There is considerable uncertainty about how existing consumer protection laws should apply in the digital environment. As a result, consumer protection can be weakened—particularly in cases involving unfair online commercial practices, such as dark patterns, misleading influencer marketing, and addictive design features in digital products.

So these are two areas that are under consideration for potential (legislative) intervention.

If you have comments or concerns about the proposed agenda, the Commission wants to hear from you. 

Read more here. 

Does your road trip playlist affect your driving?

Changing your playlist can make you a safer driver. But what if we started taking that into account in insurance pricing? 

I mean—it is risk-related and based on scientific research. 

I'm not saying we should. 

It's more to illustrate how complex the topic of data in insurance really is.

Read more here.