A new report reveals that most Americans would trust AI to help them buy insurance—signaling that artificial intelligence could be a solution to curbing the massive profits that insurers make.
The details: The report—based on an Insurify survey of 3,002 drivers—revealed that 86% of drivers are open to using AI when shopping for insurance, with Gen Z driving wider adoption of the tech in the space.
More than two in five drivers (42%) said they’ve used AI assistants to help shop for car insurance, including 60% of Gen Z.
39% of drivers would let AI secure them a policy with a new insurer if doing so could save them money, with that number surging to 68% if that savings amounted to $1,000 annually.
More than three-quarters of Americans surveyed (76%) believe AI can simplify the process of shopping for car insurance.
Why it matters: With the cost of insurance being a major factor, platforms like ChatGPT and Perplexity are already fulfilling many of the tasks that insurance agents and brokers do—minus the financial incentives or commissions that human agents get from insurers that can bias their recommendations toward higher-premium or higher-margin products rather than what’s best for the consumer.
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Between the lines: More traditional insurance agents still have a leg up on AI when it comes to some aspects of the process, with 53% saying they find human agents more credible than tech assistants.
Only 16% of respondents say AI could assess accident fault and damage better than a human agent, and just 25% believe AI could handle customer service better than an agent.
Female drivers are nearly twice as likely as male drivers to say a human agent could handle each task listed better than AI—at 27% vs. 16%, respectively.
Bottom line: Consumers are very willing to use AI to shop for and save money on insurance—especially younger drivers—but they still trust human agents more for judgment-heavy tasks like assessing accidents and handling service. AI is set to squeeze agent commissions and insurer margins on the shopping side, not fully replace humans, at least for now.
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