Customers of Insurance Companies Shifting Perspective on a Broader Embrace of Artificial Intelligence?
In a significant shift, a growing number of customers are warming up to the idea of artificial intelligence (AI) being used in the insurance sector, according to a recent study by Guidewire, the European Insurance Customer Attitudes Study.
The study reveals that half of consumers are now open to using AI for financial advice and insurance recommendations, indicating a growing acceptance of AI in critical life decisions. This trend is echoed in the insurance sector, where AI is proving successful in claims processing, underwriting, and other areas, improving efficiency and customer service.
However, despite this positive shift, one in three UK consumers still express skepticism about how AI will improve services. To address these concerns, insurers must continue to communicate how the sharing of customer data delivers real value in terms of better services and lower costs.
Insurers are also exploring the use of AI to make better risk decisions, price risk intelligently, lower expense ratios, and reduce the protection gap. One such example is the integration of Guidewire and CLARA, which has demonstrated the significant value of AI in transforming claims processing workflows. CLARA Analytics, a provider of AI technology for insurance claims optimization, has announced exceptional results from the successful launch of this integration.
Another key finding from the study is the increasing comfort of customers with AI managing insurance claims with no human involvement. The number of customers comfortable with AI determining insurance policy prices without human intervention has risen from 31% in 2024 to 37% in 2025. Moreover, one in three customers are comfortable with AI being used to process and settle claims without human intervention in 2025.
However, it's important to note that while there is a general acceptance of AI, consumers are cautious about AI in sensitive areas like healthcare diagnosis, reflecting a desire for human interaction and concerns about data privacy. Insurers must build trust in their use of data for AI, reassuring customers that they have control over how AI is being used and being transparent about AI deployment and the ability to hand over AI decisions to human agents if required by the customer.
Better customer familiarity with AI can help insurers integrate AI into their services, particularly for younger customer segments. Familiarity with generative AI is a significant factor in customer comfort levels, with more customers using AI tools weekly and fewer never using them.
In conclusion, while there is still a need for insurers to address customer concerns and build trust, the trend suggests that consumers are increasingly comfortable with AI's role in enhancing service and efficiency in the insurance sector. As insurers continue to implement GenAI to improve productivity and customer service across the insurance lifecycle, we can expect to see a further shift in customer attitudes towards AI in the coming years.
[1] Source: Guidewire European Insurance Customer Attitudes Study [2] Source: Various industry reports on AI adoption in insurance [3] Source: Independent consumer surveys on AI and data privacy concerns
- The study by Guidewire further reveals that consumers are more open to using AI for underwriting events, as the number of customers comfortable with AI determining insurance policy prices without human intervention has risen significantly.
- As the insurance sector increasingly employs insurtech and technology like AI, there's a growing opportunity for more efficient events such as claims processing and settlement, with one in three customers comfortable with AI handling these tasks without human intervention in 2025.
