InsurTech Adoption and Consumer Trust Navigating Digital Transformation in the Global Insurance Sector

Abstract

The adoption of Insurance Technology (InsurTech) is accelerating worldwide, driven by advances in artificial intelligence, blockchain, cloud computing, and data analytics. While these innovations offer the promise of efficiency, personalization, and cost reduction, their success ultimately hinges on consumer trust. This paper explores the interplay between InsurTech adoption and trust formation in the global insurance sector, analyzing how digital platforms, automated underwriting, and predictive claim systems reshape customer perceptions of reliability, privacy, and transparency. Drawing upon cross-country case studies, the study identifies key factors influencing adoption, including digital literacy, regulatory frameworks, cultural attitudes toward data sharing, and the role of human interaction in a tech-driven service model. It also examines the risks of over-reliance on automation, potential bias in AI algorithms, and the challenge of maintaining ethical standards in data usage. Findings suggest that while technology can enhance service quality and accessibility, building trust requires a hybrid approach—integrating innovation with strong customer relationships, clear communication, and robust data protection. This paper offers recommendations for insurers, technology providers, and policymakers seeking to align digital transformation with sustainable trust and loyalty in diverse markets.