The Interplay of Privacy, Personalization, and AI in Shaping the Future of Digital Insurance Products

Abstract

The digital insurance landscape is rapidly evolving under the influence of artificial intelligence (AI), data analytics, and emergent personalization techniques. AI-driven platforms enable insurers to optimize underwriting, enhance claims management, and design highly individualized insurance products. However, this evolution raises critical concerns regarding data privacy, ethical governance, and regulatory compliance. This paper examines the interplay between privacy, personalization, and AI in digital insurance ecosystems. Drawing from recent advancements in quantum computing, machine learning, and blockchain-integrated e-commerce frameworks (Fatunmbi, 2022; Fatunmbi, 2025), we analyze the technical, economic, and ethical dimensions of AI-powered personalization. The study integrates theoretical perspectives with applied methodologies, highlighting how insurers can balance customer-centric personalization with robust privacy-preserving protocols. Simulation results, case studies, and scenario analyses underscore the transformative potential and challenges of deploying AI in insurance, offering actionable insights for industry practitioners, regulators, and academic researchers.