Younger policyholders more trusting of AI than older generations
Overall, 32% of home, auto and renters policyholders trust the accuracy of AI without human oversight.
When it comes to the use of artificial intelligence and the insurance customer experience, policyholders aged 18-34 are around three times more likely to trust the accuracy of AI when compared with insureds 55 and older, according to a report from Policygenius LLC.
Around 32% of home, auto and renters insurance customers say they trust AI to accurately perform application, customer service or claims functions without human oversight. Just a quarter of survey respondents said they wouldn’t trust AI at any point when buying or using insurance, Policygenius reported.
According to McKinsey & Co., using AI for underwriting and pricing, customer service and claims handling could reduce operational expenses by up to 40%.
Policygenius also found that consumers who have experience buying or using insurance online were more likely to trust AI throughout the insurance customer experience.
Whether it is for application review, customer service or claims purposes, most survey respondents said they would be most comfortable with a hybrid approach that blends the speed of AI with a human verifying the process.
When it comes to each point in the customer experience, reviewing applications was the place most consumers thought AI could manage without human oversight. However, just 25% fully trust AI to review an insurance application without a person reviewing the work.
A similar result was seen when policyholders were asked if they trusted AI to handle customer service tasks, like answering coverage questions. Policygenius reported 24% of consumers fully trust AI to manage customer service tasks without human oversight, while 43% would not fully trust AI with these functions.
Using AI in claims management, such as damage assessment and payout, saw the least support from insureds, with just 21% fully trusting the technology to manage these assignments.
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