Between trust and technology: Why AI governance is becoming a question of survival for insurers

AI will profoundly change the insurance industry – but not every application brings progress. At the IVW Future.Talk 2/2025, it became clear that without consistent AI governance, insurers risk more than just regulatory sanctions. They risk losing the trust of their customers.

An example from everyday life: A policyholder uses ChatGPT to reformulate a rejected claim: it should be more precise, legally cleaner and more assertive. The insurer accepts the second attempt. This is not an isolated case, as Martin Thormählen, CTO of Munich Re, reports: “AI is no longer just a tool for insurers; customers are also using it to position themselves on an equal footing.”

For insurers, this means that their counterparts are more informed, more demanding and technically better equipped than ever before. There is a fine line between fairness and abuse. “If we reject claims because of technicalities, we lose trust and therefore customers,” says Monika Sebold-Bender, independent non-executive director of various insurers.

AI governance – more than just regulation

What does AI governance mean in concrete terms? For Thormählen, it is not an optional nice-to-have, but a strategic necessity. He says: “Not every automated process is progress. We must not be blinded by efficiency gains.”

Governance must precede technology. Only when ethical, legal and organizational framework conditions have been clarified can AI systems go live.

New technology needs old thinking

Another focus: employees must not only learn new tools, but also be able to think critically. “Trust bias is real. Just because the AI was right ten times doesn’t mean it won’t be wrong the eleventh time,” emphasizes Thormählen. Sebold-Bender also emphasizes the structural challenge: “Technical modernization alone is not enough. We also need to safeguard the knowledge gained from experience and remain attractive to new talent.”

If you want to use AI successfully in the insurance industry, you need to have more than just data and models under control. It’s about attitude, communication – and trust. AI governance is not a regulatory obstacle, but the basis for sustainable customer relationships in the digital age.

Binci Heeb

Read also: Insurance industry 2030: Between risk, regulation and resilience