The insurance sector continues to face consumer hesitation around artificial intelligence (AI), despite users reporting positive experiences with the technology, according to a recent GlobalData survey[1].
Benefits of AI in Insurance
GlobalData’s 2024 Emerging Trends Insurance Consumer Survey, which polled more than 5,500 individuals across 11 countries, found that nearly three-quarters (73.8%) of respondents believe AI can shorten the time required to reach a customer service representative[1]. Around 71.5% cited potential gains in operational performance, and a similar proportion (71.2%) agreed AI may outperform humans in pattern detection[1]. Among those who have engaged with AI tools in insurance, user satisfaction is relatively high, with 74.5% of those using insurance chatbots reporting being satisfied or very satisfied with the interaction[1].
Consumer Skepticism
Despite these perceived benefits, many consumers remain cautious about AI’s broader integration into insurance processes. Beatriz Benito, lead insurance analyst at GlobalData, noted that while sentiment toward AI is generally favorable, confidence in the technology’s fairness and reliability remains a barrier to wider acceptance[1]. This aligns with a separate global study by NTT Data, which identified a disconnect between the pace of AI adoption and the readiness of leadership, governance, and workforce structures to support it[2]. The report, based on feedback from over 2,300 senior executives across 34 countries, revealed that more than 80% of respondents said their organizations’ leadership and governance systems have not kept up with the pace of AI development[2].
Addressing Trust Concerns
Benito emphasized the need for transparency in AI-based decision-making and clear communication around data use to build consumer confidence[1]. “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 prefer interacting with a human,” she said[1].
Importance of Human Interaction
Human interaction remains significant in the insurance sector, especially in situations requiring empathy and judgment[3]. According to Benito, AI is likely to remain central to the industry’s digital transformation strategy, offering insurers the potential to automate customer support and streamline claims resolution[1]. However, the role of human interaction is vital in ensuring customer satisfaction and trust. “While AI has the potential to considerably improve 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,” Benito said[1].
Conclusion
GlobalData’s survey marks the company’s first multi-market study focused exclusively on insurance consumers. It includes insights from a representative panel of respondents aged 18 and over, with a minimum of 500 participants per country[1]. The findings highlight the dual challenge for insurers: leveraging AI to enhance efficiency and accuracy while addressing ongoing trust concerns related to data privacy and decision-making transparency[1].
[1]: GlobalData’s 2024 Emerging Trends Insurance Consumer Survey [2]: NTT Data Report on AI Adoption and Leadership Governance [3]: Importance of Human Interaction in Insurance
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