The insurance industry continues to face consumer reluctance toward artificial intelligence, even though many users report favourable experiences with the technology.
According to GlobalData’s 2024 Emerging Trends Insurance Consumer Survey of more than 5,500 people in 11 nations, close to 74% of participants believe AI can decrease the time needed to reach a customer service agent.
71.5% highlighted possible improvements in operational efficiency, while a comparable percentage (71.2%) acknowledged AI might surpass humans in identifying patterns.
Among insurance chatbot users, 74.5% expressed satisfaction or high satisfaction with their interactions.
Despite recognising these advantages, many consumers maintain reservations about AI’s wider adoption in insurance operations.
“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,” GlobalData lead insurance analyst Beatriz Benito said.
Benito emphasised transparency in AI-driven decision-making and clear communication on how data is utilised as critical factors for building consumer trust.
Despite AI’s dominance in digital transformation, Benito said that human interaction will continue to play a critical role in scenarios requiring empathy and nuanced judgement.
“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 continues to limit its full potential. Better communication surrounding AI’s capabilities and nuances will ultimately lead to improved adoption rates.”
GlobalData’s survey features insights from a minimum of 500 participants per country, aged 18 and older.