The issues surrounding pricing insurance cover, or settling claims using AI are serious. In a regulated industry everyone wants to see equality and fairness underpin the data. Here’s the word;
Global consumers unanimously acknowledge the benefits of deploying artificial intelligence (AI) tools in insurance yet are skeptical about their commercial rollout. Despite high satisfaction among users of AI tools, insurers must address trust issues and prioritize transparency, especially around AI-driven decisions and data privacy. Building consumer confidence will be key as AI becomes more integrated into insurance operations, according to a survey by GlobalData, a leading data and analytics company.
According to GlobalData’s 2024 Emerging Trends Insurance Consumer Survey*, there is a strong belief that AI can reduce queueing times to speak to insurance agents as cited by 73.8% of consumers. Meanwhile, a slightly lower proportion of consumers believe the use of AI can result in operational efficiencies (71.5%), while also citing the technology is better at pattern recognition than humans (71.2%).
Beatriz Benito, Lead Insurance Analyst, GlobalData, comments: “Despite the positive perceptions, insurers face challenges in ensuring consumers adopt AI tools. Many consumers find that the technology is not yet sufficiently developed to be adopted at scale, eroding their trust. To overcome these trust issues, insurers must prioritize transparency in AI-driven decisions, particularly among those who perceive bias in the tools, such as providing negative claim outcomes. Some consumers will have data privacy concerns, while others will simply just prefer interacting with a human.”
Despite skepticism surrounding the use of AI tools at a commercial scale, satisfaction levels among the customers using such tools are high. The survey reveals that 74.5% of customers using insurance chatbots were either satisfied or very satisfied by the experience.
Benito continues: “Most certainly, the use of AI will transform the insurance industry in several ways and will also drive operational efficiencies and cost reductions. For instance, the availability of AI tools brings a new paradigm in that assistance or customer support can be provided 24/7, while the automation of claims processing leading to reduced settlement times, will naturally be viewed favorably by consumers.”
Meanwhile, the speed and precision of AI in pattern recognition means that risks can be quantified more accurately and policies priced more fairly, while fraud detection can be improved.
Benito concludes: “While all in all, AI has the potential of considerably improving satisfaction rates in insurance, the need for the human touch and empathy in engagements continue to limit its full potential. Better communication surrounding AI’s capabilities and nuances will ultimately lead to improved adoption rates.”
*GlobalData’s 2024 Emerging Trends Insurance Consumer Survey featured a panel of consumers aged 18+, with 5,520 respondents spread across 11 countries in different regions to identify global trends. There was a minimum of 500 respondents per country. It is GlobalData’s first-ever dedicated multi-market insurance consumer survey.
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