AI Ethics in Insurance: What Consumers Perceive as Fair

Picture this: You’re buying car insurance, and instead of answering the usual questions about your driving record, an app tracks your speed, braking habits, and even how often you drive at night. The insurer then uses AI to decide your premium.

Sounds efficient, right? But here’s the catch: while AI-driven underwriting can make pricing smarter and more personalized, it raises a big question: what do consumers consider fair?

AI Meets Insurance

Across the world, insurers are experimenting with behavior-based pricing:

• Drive safely, and you could pay less.

• Speed often, and your premium goes up.

It seems logical. But surveys show that fairness isn’t just about accuracy, it’s about trust.

For example, a 2022 survey by the OECD found that while 67% of consumers supported AI in making insurance more affordable, nearly 70% said transparency was critical. In other words, people want to know how the AI decides.

What Feels Fair to Consumers?

When asked about AI in insurance, consumers usually highlight three fairness concerns:

1. Transparency People don’t mind data being used if they understand it. A European survey found that more than half of respondents would switch insurers if they felt algorithms were “a black box.”

2. Control Over Data Imagine your insurer tracking your late-night driving without your consent. Uncomfortable, right? Studies show consumers are more open to AI underwriting when they can opt in or out.

3. Bias & Equality What if AI pricing unintentionally penalizes younger drivers, women, or those in certain neighborhoods? Concerns about algorithmic bias make consumers wary unless safeguards are clearly in place.

The Global Pulse

• In the U.S., the National Association of Insurance Commissioners (NAIC) has flagged fairness and discrimination as top priorities for AI oversight (NAIC, 2023).

• In Europe, regulators are pushing insurers to give “clear explanations” when AI influences pricing.

• In Ghana and other African markets, trust is even more fragile. Insurance uptake is already low, so any perception of “unfair AI” could discourage adoption entirely.

The Consumer’s Bottom Line

Consumers seem to be saying:

• “Personalization is fine, but don’t cross the line.”

• They’re okay with AI rewarding safe driving.

• They’re uneasy if AI draws conclusions they can’t see or challenge.

In short, fairness in insurance isn’t just about math; it’s about psychology.

Why This Matters 

As AI-driven tools expand in Ghana and across Africa, insurers must balance innovation with trust. It’s not enough to offer cheaper policies for safer drivers. Companies must also:

• Explain how AI decisions are made.

• Give consumers control over what data is shared.

• Build safeguards against bias.

Because in the end, an “unfair but smart” system won’t fly. Consumers want an insurance future that’s fair, transparent, and human-centered.

Now, would you trade more data sharing for lower premiums, or do you feel that some personal information should always be off-limits to insurers?