Confidence in AI insurance solutions increasing

Consumers are still cautious about the use of artificial intelligence within the insurance sector, but confidence increases in line with exposure to AI devices in the home. In line with this, insurers need to embrace AI in order to better serve customers in the future. This is according to a new report from reinsurer SCOR, titled In the Mood For AI.

The report, based on the Global Consumer Study 2019-2020 from insurance marketing company ReMark, part of the SCOR group, stated that robust governance, customer-focused design and benefits such as faster responses are key to earning consumer support.

Consumers are willing to accept a more automated approach in exchange for improvements in functionality, but human interaction remains an essential part of customer service. Almost half (47 percent) of respondents surveyed by ReMark said they always prefer human interaction, with this figure swelling to 61 percent in France, 58 percent in Germany and Canada and 56 percent in the UK. This figure varied very little across the different age groups.

The experience and expertise associated with an insurance brand are valued by consumers, with just 12 percent saying they would purchase from a company with no association with the life insurance sector. But this loyalty could be tested by a new company offering the right price, flexible products and slick customer service, SCOR added.

“Offering a benefit such as a faster response or 24/7 customer service can help to soften consumers’ attitude to AI,” it said. “Of the two options, speed proved to be the most popular, with 36 percent of respondents saying they would be happy with AI if it meant they received a faster response.”

New technologies, particularly advances in tracking and monitoring devices, provide the means for a mutually beneficial cooperation between life insurers and their customers, the report said.

“The confluence of a responsible, health-conscious consumer, personal tech and real-time data monitoring make proactive health management a reality, enabling individuals to manage and even prevent a range of medical conditions,” it said.

“By learning about, and contributing to, each individual consumer’s health development and prioritising the positive factors that could improve their health and aid prevention, insurers can make a real difference to underlying health – changing the industry’s image by creating a more personalised, proactive and holistic consumer experience for insurance protection.”

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