“Trust and transparency must be central to how the industry deploys these technologies,” she said. “Consumers don’t just want faster answers, they want smarter ones. When applied thoughtfully however, AI becomes a powerful ally; not just for cost savings, but for building long-term trust in a traditionally complex space.”

Key ways AI is being leveraged in insurance today:

Fraud prevention: AI can quickly spot suspicious activity and unusual patterns to recognize and prevent fraud.
Risk assessment: During the underwriting process, AI can quickly assess relevant data to help in determining how much risk a person poses and thus whether to insure them and at what price.
Faster claims processing: Chatbots and other AI solutions can help with administrative tasks like information gathering, leading to faster claims processing times.
Operational efficiency: Chatbots and natural language processing can also be used to field general customer requests and speed up operations.

Meanwhile, the global AI in insurance market is experiencing substantial growth and is projected to reach $10.27 billion in 2025, attributed to data explosion, risk assessment and underwriting, fraud detection and prevention, customer experience enhancement, operational efficiency and cost reduction.

Other key findings include:

Comfortability with using AI to manage insurance policies is split, with 37% of people saying they would feel comfortable, while the same percentage say they wouldn’t. The remaining 27% are unsure.
Despite many carriers utilizing AI chatbots, most people don’t think they’ve used a chatbot to file a claim or get a quote. 76% of respondents said they have not used AI to handle insurance claims or quotes, compared to 19% who said they have.

See also:

Special Reports /

Most insurance customers want humans, not robots

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