‘Where does the money flow’ – AI insurance recommendations face trust test

Insurance providers could face a new consumer trust challenge as artificial intelligence (AI) becomes an increasingly important route for customers to research and buy policies.

Speaking at the Innovate This 2026 conference, Peter Blanc, global head of M&A and strategic advisor at Howden, warned that customers could quickly lose faith in large language models (LLMs) such as ChatGPT if they suspect recommendations are shaped by insurer payments rather than product quality or suitability.

“We can all come at this altruistically and think if we create a really good product, ChatGPT will naturally recommend it because it’s a really good product,” he said.

“But sadly, these organisations are all commercial entities. They will recommend the product that’s paying them the most money, I fear.”

Blanc said this could create similar concerns to those already raised around price comparison websites, where consumers may question whether prominently featured products are genuinely the most suitable option.

“That could very quickly lead customers to actually lose trust in the model, in the same way they might lose trust with comparison sites right now,” he said.

‘Where does the money flow?’

The issue is becoming increasingly relevant as AI tools evolve from information sources into potential distribution channels for insurance products.

Alistair Crossley, global head of travel solutions at Axa, said AI platforms could eventually enable customers to plan and book entire journeys, with insurance products offered alongside travel arrangements based on the risks associated with a specific trip.

“We already see customers requesting whether they want to travel using AI, Claude, ChatGPT. The next step will be booking those journeys through AI,” he said.

“Soon after, insurance and other travel and similar services will follow.”

Crossley said such a shift would require insurers and brokers to make products available at a much more granular level, allowing AI systems to select individual benefits according to a customer’s circumstances.

However, Blanc questioned whether the commercial relationships behind AI-driven recommendations would be sufficiently transparent.

“We all just believe that if we ask ChatGPT for a recommendation, it does that out of the goodness of its heart,” he said.

“But being slightly cynical, I suspect that when insurance is involved, it will be where does the money flow.”

The discussion reflects growing industry debate over how AI-powered distribution could develop, with transparency and consumer trust likely to be critical if customers increasingly rely on AI platforms to make purchasing decisions.