While insurance consumers may be warming up to artificial intelligence, 68% say they believe the insurance company gets most of or all the benefits of AI adoption.
AI is becoming more ingrained and accepted as part of the insurance industry’s interactions with insureds. However, while consumers recognize the potential value of AI, they have serious doubts about how investing in AI technology will offer better results or lower costs for them.
In a new , insurance customers were asked who will see the most gain from insurance companies integrating AI into their solutions. Only 26% say the benefits are shared equally between the customer and the insurance company.
Customers don’t immediately see a personal benefit in AI commandeering big decisions versus smaller, nuts-and-bolts interactions, according to J.D. Power’s survey analysis.
Customers said they are most comfortable with AI when it is used to automate routine aspects of their experience, such as sending automated claim status updates (24%), managing their billing (23%) and answering basic customer service questions (21%).
In contrast, nearly half (47%) are somewhat or very uncomfortable with AI being used to process their claims, and just 15% of customers believe insurance companies should fully use AI to price their policies, demonstrating a clear boundary between convenience and trust.
One-third (33%) of customers believe AI use in pricing insurance policies should be limited until companies can ensure it doesn’t introduce bias or violate ethical standards. Another 30% said AI should be limited to partial use that includes strong safeguards for fairness, explainability and regulatory compliance.
Before doubling down on tech, companies can bolster consumer confidence by explaining real-life impacts and consumer benefits to using AI in their decision-making, dispelling some of the apprehension shown in the survey results. Insurers that can get that customer buy-in will have an easier time using AI to reshape their processes.
Was this article valuable?
Here are more articles you may enjoy.
Acrisure to Buy MGA Vave From Canopius 
WTW to Acquire Newfront in Deal Worth Up to $1.3B 
Man Sentenced for Flashing Three Insurance Agencies in Georgia 
Chubb, The Hartford, Liberty and Travelers Team Up on Surety Tech Launch 
