Data released today from claims automation insurtech, Sprout.ai, has shown customers believe fair decision-making and trust are more important than speed when settling an insurance claim using AI. 

AI in insurance is expected to be worth nearly 80 billion dollars by 2032. Its benefits to the industry are clear. But to make the most of them,  insurers and technology providers should try to bridge the knowledge and trust gap between consumers and AI.

The online research, which surveyed over 4,400 consumers from the UK and the US in collaboration with YouGov, found an interesting paradox between customers' desire for the benefits AI can deliver and their apprehension towards its adoption. Although speed (57%) and customer service (52%) are important for consumers across both geographies, they rank second and third to trust (62%). Only 8% of consumers said an insurer’s technical capability was important, whilst nearly a fifth (18%) of respondents who would choose an insurance provider which did not use AI, said it was because they would be  concerned about transparency in the insurance process. This highlights the importance of clear communication and human touch from insurance providers across the claims process, regardless of the demographic or geography they are targeting.

Human involvement in insurance is still very important, with over a quarter (27%) of respondents saying they value it. The lack of trust in AI may be linked to this as many deem human interaction and AI to be at odds with AI, in large part due to the wider media narrative around AI replacing humans. Sprout.ai’s own data shows that the use of AI significantly increases the amount of time a claim handler has to interact with customers, enabling the insurer to gain effectiveness without sacrificing empathy.

Commenting on the research and its findings, 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 to ensure no customer is left behind. 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 continues to intensify, insurers need to think about the customer experience more holistically and that must include empathy and education. It is the collective responsibility of everyone in the insurance industry to be transparent and informative about how technology is used to make decisions. Those that do stand to reap significant financial and reputational rewards.”