A recent survey indicates consumers remain skeptical of artificial intelligence (AI) in insurance claims handling and, above all else, want to be able to trust that their carrier makes a fair claim decision.

On behalf Sprout.ai, YouGov surveyed 4,442 U.S. and UK consumers to find out what matters most to them when considering an insurance claims experience, what influences public attitudes when they’re insurance shopping, and perceptions of AI’s role in insurance claims processing.

According to the survey, the combined top five priorities of U.S. and UK customers are: trust that a fair claim decision was made (62%), claim processing speed (57%), customer service quality (52%), access to evidence that backs up claim decisions (42%), and transparency on claim status (41%). Last is carriers’ technological proficiency at 8%.

Trust was No. 1 in both countries — 70% in the UK and 56% in the U.S.

“AI is already widely used — and trusted — in everyday applications such as map applications and digital voice assistants,” Sprout.ai wrote in its survey findings report. “By highlighting its ability to streamline claims processing while maintaining fairness, insurers can reshape public attitudes and create a more positive outlook towards its integration.

“Insurers that successfully do this will be able to meet customer expectations more widely, consistently, and to greater effect. This will lead to increased customer satisfaction, retention, and a greater level of trust in claims processing.”

Based on the results, Sprout.ai says carriers need to provide transparency on how their claim decisions are made with AI, such as the specific role AI plays, in order for policyholders to build trust in the technology.

Mistrust in AI, losing human interaction, lack of transparency from carriers on how AI is used, and data privacy were listed as reasons why respondents said they prefer carriers that don’t use AI.

Sprout.ai notes that nearly 18% of respondents stating that they were concerned about transparency in insurance processes indicates there is “a need for better communication and education about how AI is used in the insurance industry.”

“The media often focuses on the technological aspects of AI and automation, leading to the perception that human interactions will be replaced entirely by chatbots and AI systems. Negative experiences with automated customer service systems in the past could be contributing to the assumption that all interactions with insurers using AI will be impersonal and frustrating.

“This shows the importance of emphasizing that claims handlers will still be available to customers. When insurers use Sprout.ai, for example, claims handlers have more time to speak with customers because claims processing tasks like data entry are automated.”

Sprout.ai CEO Roi Amir added, “While respondents expressed a desire for a high-quality experience with fast claims processing and
accurate decisions, there was a significant gap in recognizing AI’s role in meeting these expectations. They want the efficiency, fairness,
and transparency that AI can bring to claims processing but they have yet to trust it.

“This highlights a need for insurers and technology providers to demystify the technology, build trust, provide transparency around its use
and raise awareness among consumers on its advantages.”

However, we can safely say there are safeguards that are needed moving forward when AI is used. Earlier this month, insurance investor Adrian Jones told Repairer Driven News he believes regulations and standardization are needed to move forward in effectively using the technology in insurance.

For example, standardization or restrictions will need to come into play when AI is trained on very specific insurance information to handle claims, likely including private information. That would also mean addressing varying existing requirements by state, Jones said.

In addition, an eBook on AI processes in underwriting, written by intellectAI, underscores that it’s “very critical to reimagine the future of the underwriting journey with a human-centered approach.”

Overall, combining respondent answers from the survey commissioned by Sprout.ai, consumers ages 55 and overvalue a fair claim outcome more than all of the other age groups with ages 45-54 close behind followed by age groups 35-44, 25-34, and 18-24.

“Interestingly, trusting that a decision was made fairly was equally important or more so than other factors across all surveyed age groups.
Consumers also want transparency around how decisions are made. 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.

“…In a scenario where an alternative insurance provider offered a faster claims process by using AI compared to a non-AI insurer, 51% said they were not likely [or] very unlikely to switch, 25% expressed a fair likelihood or were very likely to switch. Younger demographics were more receptive, with 40% of 18-to-24-year-olds and 37% of 25-to-34-year-olds saying they were likely or very likely to switch. Only 15% of those over 55 said the same.”

Thirteen percent of U.S. respondents and 5% of UK respondents (9% overall) said they prefer to be insured by a carrier that uses AI in claims handling.

Younger demographics show more openness to AI, with 17% of 18-24-year-olds and 19% of 25-34-year-olds indicating a preference for AI-using insurers. Only 2% of those aged over 55 have that preference.

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