Insurers expect AI to build trust; many policyholders want a human available for critical moments

The useful part

Eighty-five percent (85%) of insurance executives surveyed expect AI to strengthen customer trust, while just 40% of policyholders agree, with nearly as many believing AI will actually weaken the trust they place in their carrier. The study surveyed 550 senior P&C insurance decision-makers and 2,000 policyholders across the US and Canada. Sixty-five percent (65%) of insurers said they expect to increase dedicated AI investment across a broad range of functions.

How it works

• That trust drops to just 45% when it comes to information needed to file a claim correctly, a finding that points to a clear line in how policyholders are willing to accept AI assistance.
• The report found that acceptance and comfort with AI-enabled communication depend heavily on where AI is used, how transparent it is, and whether a human is accessible when it matters most.
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• Only about half of policyholders said they are mostly or completely confident their insurer will use AI responsibly.
• Two-thirds of policyholders said their biggest concern is not AI itself but the fear of being unable to reach a human when it matters.

What to take from it

Roughly two-thirds of policyholders said they would trust AI-delivered answers to general insurance questions or coverage details. "AI can support coverage decisions, liability determinations, payment decisions and negotiations, but it shouldn't be the decision-maker," Fernandez said. Differentiation is the harder problem once AI is everywhere Saurabh Saraf, chief digital officer at Amica Insurance, raised a concern that goes beyond trust: if AI adoption becomes universal across the industry, the technology itself stops being a differentiator.

Example or evidence

• As carriers deploy AI-enabled communication, building and maintaining trust with customers depends on reassurance that policyholders will be able to access a human to help with important decisions, confirm...
• Stephanie Behnke, principal industry and market insights at Hi Marley and co-author of the report, said the key challenge for carriers is identifying where AI reduces friction without removing judgment and...
• "Carriers must identify where AI reduces friction without removing judgment and empathy.
• Dave Fernandez, chief claims officer at Kingstone Insurance, drew a clear boundary in the report.

Details worth keeping

Insurers are bullish on AI, but policyholders want a human on standby. study Policyholders are fine with AI for general questions. Ask them to file a claim with it and trust drops to 45%.

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