Trust and transparency most important when using AI in insurance

Data released by 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 artificial intelligence (AI).

The online research, which surveyed over 4,400 consumers from the UK and the US in collaboration with YouGov, found a paradox between customers’ desire for the benefits AI can deliver and their apprehension towards its adoption.

Although speed (57 per cent) and customer service (52 per cent) are important for consumers across both geographies, they rank second and third to trust (62 per cent).

Only eight per cent of consumers said an insurer’s technical capability was important, whilst nearly a fifth (18 per cent) 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.

Human involvement in insurance is still very important, with over a quarter (27 per cent) of respondents saying they value it. It is believed that the lack of trust in AI may be linked to this as many deem human interaction and AI to be at odds with one another – also due to media narratives.

Sprout.ai’s 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.

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.”