AI Emergence

AI In Insurance

Millennials more likely to embrace AI in P&C Insurance than other generations

The Insurity 2024 AI in Insurance Report sheds light on the evolving landscape of artificial intelligence (AI) adoption in the Property & Casualty (P&C) insurance industry with critical implications for insurers.

HARTFORD, Conn.–(BUSINESS WIRE)–Insurity, a leading provider of cloud software for insurance carriers, brokers, and MGAs, today unveiled insights from its 2024 AI in Insurance Report that millennials are much more likely to view AI as a positive development in P&C insurance compared to other generations. The Insurity 2024 AI in Insurance Report underscores the contrasting perspectives of different generations toward AI technology and its impact on insurance.

This report reveals that millennials, born between 1980 and 1994, emerge as the most enthusiastic proponents of AI in P&C insurance, with 33% responding that they would recommend their carrier to adopt AI. Millennials view AI as a transformative tool in the industry and recognize its potential to streamline processes and enhance customer experiences. Their endorsement stems from the practical benefits AI offers, including time-saving efficiencies and ease of use in their day-to-day lives. As millennials juggle demanding careers and growing families, AI provides a lifeline by automating routine tasks and providing instant support. Insurers adopting AI technologies into their operations will not face as much apprehension with this group.

In contrast, Generation Z, born between 1995 and 2006, are approaching AI with skepticism, with only 18% responding that they would recommend their carriers adopt AI. This is likely because while they understand the technology, they harbor reservations about its role in insurance. Their concerns include privacy, transparency, and the potential impact AI could have on the job market. Insurers must address these concerns, otherwise they could lead to a trust deficit, impacting Generation Z’s future brand loyalty and customer retention for insurers. Baby Boomers, born between 1946 and 1964, often lack familiarity with AI and responded in line with Generation Z, with 16% saying they would recommend carriers adopt AI. Insurers adopting AI and targeting this demographic must invest in education and communication, as explaining AI’s benefits and demystifying its workings will be crucial to convincing them of its merits.

Investing In AI

As the insurance industry continues to invest in AI, understanding generational perspectives becomes crucial...

Major P&C insurance companies are embracing AI and are actively integrating the technology into their operations to enhance policyholder experiences. The most common AI use cases have been for accelerated claims processing, personalized risk assessment, rapid fraud detection, and AI chatbots to provide instant answers to routine inquiries.

“As the insurance industry continues to invest in AI, understanding generational perspectives becomes crucial,” said Chris Lafond, Chief Executive Officer at Insurity. “While millennials embrace AI for its efficiency and ease, other generations’ skepticism and lack of familiarity present unique challenges to insurance organizations who are making serious investments in AI technology. Insurers must bridge this gap by educating and communicating effectively the benefits of AI, as the future success of AI adoption hinges on addressing these diverse viewpoints.”

 

 

 

Methodology
This survey was conducted online in January 2024, and more than 1,000 adult participants were randomly selected across the United States to ensure a representative sample. Respondents were asked a series of 8 questions, ranging from multiple-choice to scale-based, to gauge their opinions on AI in P&C insurance. Data analysis was performed to identify key patterns and insights.
To learn more about Insurity’s 2024 AI in Insurance Report, please get in touch with Elizabeth.Hutchinson@insurity.com.
About Insurity
Insurity is a leading provider of cloud-based software for insurance carriers, brokers, and MGAs. Insurity is trusted by 22 of the top 25 P&C carriers and 7 of the top 10 MGAs in the US and has over 400 cloud-based deployments. Through its best-in-class digital platform, unrivaled industry experience, and the industry’s most robust analytics offerings, Insurity is uniquely positioned to deliver exceptional value, empowering customers to focus on their core businesses, optimize their operations, and provide superior policyholder experiences. Insurity is a portfolio company of GI Partners and TA Associates. For more information, visit www.insurity.com.