Insurance customers are cautious about AI’s decision-making role

Although, 7 in 10 consumers think AI can significantly reduce waiting times.

Whilst consumers acknowledge the benefits of artificial intelligence (AI) in insurance, skepticism remains about its large-scale adoption, revealed a GlobalData survey. 

The 2024 Emerging Trends Insurance Consumer Survey found that 73.8% of respondents believe AI can reduce wait times to speak with agents, whilst 71.5% see potential operational efficiencies. 

Additionally, 71.2% recognise AI’s superiority in pattern recognition.

Despite these positive perceptions, concerns about trust, transparency, and data privacy persist. 

Many consumers believe AI is not yet developed enough for widespread use, particularly in decision-making processes such as claims approvals. 

Some perceive biases in AI-driven outcomes, whilst others prefer human interactions.

Satisfaction levels amongst AI tool users are high, with 74.5% of chatbot users reporting a positive experience. 

AI’s ability to provide 24/7 support and speed up claims processing is seen as beneficial.

The technology also enhances fraud detection and allows for more precise risk assessment and pricing.

Beatriz Benito, lead Insurance Analyst at GlobalData, noted that whilst AI has the potential to improve customer satisfaction and efficiency, the need for human interaction limits its full adoption. 

Clearer communication about AI’s capabilities and limitations could help increase consumer confidence.

The survey included 5,520 respondents across 11 countries.