Consumers Welcome AI for Enhanced Experiences in P&C Insurance but Hesitate on AI’s Role in Financial Decisions, According to Insurity’s 2024 AI in Insurance Report

Insurity’s 2024 AI in Insurance Report serves as a valuable tool for insurance organizations to strategize their AI deployments effectively, ensuring they meet consumer needs and preferences

Insurity, the leading provider of cloud software for insurance carriers, brokers, and MGAs, today shared new insights into American consumers’ attitudes toward artificial intelligence (AI) in the property and casualty (P&C) insurance sector. The findings are from Insurity’s 2024 AI in Insurance Report, which is an essential guide for P&C insurance companies exploring integrating AI technologies and adapting to evolving consumer expectations.

In a revealing insight into consumer priorities, the report uncovered the services where AI’s application in P&C insurance had the strongest support, with fraud detection emerging as the top service, garnering 35% of consumer votes. This was closely followed by 32% of respondents supporting AI’s use to deliver personalized products and promotions and 24% of consumers supporting AI in customer service. These preferences suggest growing consumer confidence in AI’s ability to enhance their overall experience and provide tailor-made solutions, reflecting an appreciation for the technology’s potential to streamline and secure their interactions with insurance services.

Conversely, there was a marked resistance to AI stepping into more decision-critical roles. According to the report, 50% of respondents are currently against AI's involvement in claims management, and 45% are currently against AI being used in underwriting policies. This opposition likely stems from concerns over the loss of human judgment in crucial financial decisions, suggesting that while consumers are open to AI's conveniences, they remain cautious about its role in more sensitive and impactful aspects of their insurance coverage.

“Understanding consumer attitudes toward AI is critical for insurance organizations as they plan their AI strategy,” said Chris Lafond, Chief Executive Officer at Insurity. “Consumers’ preferences for AI in enhancing service delivery and security, contrasted with reservations about its role in critical decision-making processes, signals a need for a balanced approach to be mindful of areas where human oversight remains preferred. Incorporating AI to complement human judgment rather than replace it will be key to fostering trust and acceptance among consumers.”

"As AI technology progresses, its future in the insurance industry depends on our ability to build consumer trust, especially in underwriting and claims processing," said Sylvester Mathis, Chief Insurance Officer at Insurity. "Insurers have a significant opportunity to clarify AI's role and demonstrate its benefits in improving accuracy and efficiency. By transparently communicating how AI complements human expertise, ensuring data privacy, and showing its positive impact on claim resolutions and policy pricing, insurers can gradually increase consumer comfort and trust in AI's capabilities. The journey ahead will require a thoughtful approach to integrating AI, where consumer confidence is as much a priority as technological advancement."

This survey was conducted online in January 2024, and more than 1,000 adult participants were randomly selected across the United States to ensure a representative sample. Respondents were asked a series of 8 questions, ranging from multiple-choice to scale-based, to gauge their opinions on AI in P&C insurance. Data analysis was performed to identify key patterns and insights.

To learn more about Insurity’s 2024 AI in Insurance Report, please get in touch with Elizabeth.Hutchinson@insurity.com.

About Insurity

Insurity is a leading provider of cloud-based software for insurance carriers, brokers, and MGAs. Insurity is trusted by 22 of the top 25 P&C carriers and 7 of the top 10 MGAs in the US and has over 400 cloud-based deployments. Through its best-in-class digital platform, unrivaled industry experience, and the industry’s most robust analytics offerings, Insurity is uniquely positioned to deliver exceptional value, empowering customers to focus on their core businesses, optimize their operations, and provide superior policyholder experiences. Insurity is a portfolio company of GI Partners and TA Associates. For more information, visit www.insurity.com.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.