The insurance sector continues to encounter consumer hesitation around artificial intelligence, even as users report positive experiences with the technology, according to a recent GlobalData survey.
While AI is seen as a tool that could enhance efficiency and accuracy, insurers are being urged to address ongoing trust concerns, particularly in areas related to data privacy and decision-making transparency.
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.
Around 71.5% cited potential gains in operational performance, and a similar proportion (71.2%) agreed AI may outperform humans in pattern detection.
Among those who have engaged with AI tools in insurance, user satisfaction is relatively high. Of those using insurance chatbots, 74.5% reported being satisfied or very satisfied with the interaction.
Despite these perceived benefits, many consumers remain cautious about AI’s broader integration into insurance processes.
Beatriz Benito, lead insurance analyst at GlobalData, said that while sentiment toward AI is generally favourable, confidence in the technology’s fairness and reliability remains a barrier to wider acceptance.
“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,” she said.
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. The report, based on feedback from over 2,300 senior executives across 34 countries, revealed that more than 80% of respondents said their organisations’ leadership and governance systems have not kept up with the pace of AI development.
Benito said transparency in AI-based decision-making and clear communication around data use will be necessary to build confidence.
“Insurers must prioritise 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 just prefer interacting with a human,” she said.
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.
“For instance, the availability of AI tools brings a new paradigm in that assistance or customer support can be provided 24/7, while the automation of claims processing leading to reduced settlement times will naturally be viewed favourably by consumers,” she said.
However, she added that the role of human interaction remains vital in situations where empathy and judgment are required.
“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 continue to limit its full potential. Better communication surrounding AI’s capabilities and nuances will ultimately lead to improved adoption rates,” Benito said.
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.
