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Insurity Survey Reveals Declining Consumer Confidence in AI for P&C Insurance, Signaling a Need for Action from Insurers

Feb 20, 2025 - financialpost.com
The article discusses the findings of Insurity's 2025 AI in Insurance Report, which highlights a decline in consumer confidence in the use of artificial intelligence (AI) in property and casualty (P&C) insurance. The report reveals that only 20% of Americans now view AI usage in P&C insurance positively, down from 29% in 2024. Skepticism has increased, with 44% of consumers less likely to purchase from insurers using AI. Positive experiences with AI have also decreased, with only 47% of consumers reporting positive interactions in 2025, compared to 63% in 2024. The report suggests that consumers are more comfortable with AI when its purpose is clear, such as in real-time weather monitoring.

The generational analysis shows a decline in positive sentiment toward AI across most age groups, except Gen Z, which remained steady. Millennials experienced the most significant drop in positive sentiment. The report emphasizes the need for insurers to address concerns about AI's transparency, reliability, and value. Insurity's Chief Revenue and Chief Insurance Officer, Sylvester Mathis, stresses the importance of educating consumers, demonstrating fairness, and showcasing success stories to build trust and engagement. The survey, conducted in January 2025, involved over 1,000 adult participants across the United States.

Key takeaways:

  • Consumer confidence in AI for P&C insurance is declining, with only 20% of Americans supporting its use, down from 29% in 2024.
  • Skepticism about AI-driven processes has increased, with 44% of consumers less likely to purchase a policy from an insurer that uses AI.
  • Positive experiences with AI have decreased, with only 47% of consumers reporting positive interactions in 2025 compared to 63% in 2024.
  • Generational data shows a decline in positive sentiment toward AI across most generations, with Millennials experiencing the most significant drop from 41% to 26%.
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