AI in P&C Insurance Gains Consumer Trust for Improved Service, Yet Faces Skepticism in Decision-Making Roles (Insurity)

AI in P&C Insurance Gains Consumer Trust for Improved Service, Yet Faces Skepticism in Decision-Making Roles

  Thursday, April 11th, 2024 Source: Insurity

Insurity’s latest report on AI in the property and casualty (P&C) insurance sector reveals a nuanced view of consumer attitudes towards artificial intelligence. Released in April 2024, the findings indicate a strong consumer backing for AI in enhancing services such as fraud detection, which led the pack with 35% approval, and in delivering personalized products and promotions. About a quarter of consumers appreciate AI’s role in improving customer service, showcasing a recognition of AI’s potential to refine their insurance experiences.

Despite the enthusiasm for these applications, there’s a notable hesitation towards AI’s involvement in more critical financial decisions. Half of the surveyed participants expressed opposition to AI managing claims, and a close 45% disapproved of its role in underwriting policies. This resistance is primarily driven by concerns over the loss of human judgment in pivotal financial matters, signaling that while AI’s convenience is welcome, its role in significant insurance decisions remains contentious.

Insurity executives Chris Lafond and Sylvester Mathis emphasized the importance of understanding these consumer attitudes for crafting effective AI strategies within the insurance industry. They advocated for a balanced approach where AI augments rather than replaces human judgment, aiming to build consumer trust through transparency, assurance of data privacy, and demonstrations of AI’s positive contributions to efficiency and accuracy in claim resolutions and policy pricing. The future of AI in insurance, they argue, hinges on the industry’s ability to marry technological advances with a deep respect for consumer preferences and concerns.

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