AI in insurance: Customers value trust and transparency over speed

The survey has found that customers value trust and transparency over speed when settling an insurance claim using artificial intelligence (AI).

The results showed that 62% of respondents said trust was the most important factor when choosing an insurance provider, followed by speed (57%) and customer service (52%). Only 8% of consumers said an insurer’s technical capability was important.

Nearly a fifth (18%) of respondents who would choose an insurance provider that did not use AI said it was because they were concerned about transparency in the insurance process.

Commenting on the research, Roi Amir, CEO of Sprout.ai, said: “The benefits of AI in insurance are undeniable, but this research highlights some critical factors that insurers need to consider. Customer service can’t just be about speed and efficiency – insurers need to meet the full customer need, bring them along the digital transformation journey and support them in understanding the role of AI to bridge a widening trust gap.

“As competition for customers intensifies, insurers need to think about the customer experience more holistically. It is the collective responsibility of everyone in the insurance industry to be transparent and informative about how technology is used to make decisions.”

The survey also found that a quarter (27%) of respondents said human involvement in insurance was important to them. This may be due to a need for more trust in AI, as many people associate AI with replacing humans.

However, Sprout.ai’s data shows that using AI increases the time a claim handler interacts with customers. This allows insurers to be more efficient without sacrificing empathy.

The survey’s findings suggest that insurers must focus on building trust with customers and educating them about the role of AI in insurance.