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NEW YORK — Insurance is supposed to give people peace of mind when unexpected disasters occur. Unfortunately, a new study finds that the process of getting insurance right now is so painful that most Americans don’t even want to go through that frustration.
In fact, many Americans would rather deal with endless traffic than sit down and consider their insurance options. In a survey of 2,000 adults, 58% said they would be willing to endure many of life’s hassles to never have to stress about understanding insurance policies and enrollment procedures again.
In addition to enduring endless traffic (13%), many adults also want to live with their parents again (22%), go to a concert by an artist they don’t like (22%), or even I want to listen to a song over and over again. All year round (14%)
Commissioned by UserTesting and conducted by Talker Research, researchers sought to understand the frictions people experience as insurance access undergoes a digital revolution. 65% of respondents said they were confident in understanding their insurance coverage, but more than one in three (36%) said they felt confident in understanding complex insurance information. We are looking at artificial intelligence (AI) as a useful tool. However, the majority of consumers said they would prefer receiving insurance advice from a human advisor rather than an AI (86% vs. 14%).
Despite this, many people still believe that AI can help them in some way. That means things like comparing insurance plans (33%) and simplifying coverage terms that can be overwhelming for the average consumer (25%).
As opposed to receiving advice from a human advisor, one in three respondents said they would be more comfortable sharing personal information with an AI rather than a human, and believe that AI provides better privacy. (43%) and non-judgmental (35%)).
36% of Americans look to artificial intelligence as a useful tool for understanding complex insurance forms. (© WavebreakMediaMicro – Stock.adobe.com)
Despite the appeal of using AI, there is some skepticism. More than a third of respondents (38%) said they would be comfortable sharing personal information with AI, said they did not trust AI in general (56%), and said they would be comfortable sharing their personal information with AI (56%) and said they would be comfortable sharing their personal information with AI (56%). (44%) say they are likely to share it. .
Other concerns include a lack of personal connection (40%) and doubts about the accuracy of AI-generated recommendations (36%). Despite their concerns, 38% are “open to using AI” for insurance advice in the future.
“Consumers are increasingly embracing AI to help them understand their insurance policies,” Bee Nookala, principal marketing manager for insurance solutions at UserTesting, said in a statement. “Many people trust AI to provide more privacy and unbiased advice than human agents. AI is poised to play a key role in transforming the future of insurance. is clear, but it is equally important that businesses balance this with the human touch that customers still crave.”
The survey found that Americans feel most informed about health insurance (78%) and auto insurance (75%), followed by dental insurance (65%), home insurance (61%), Pet insurance (39%) was also revealed. When describing the most important factors when choosing insurance, respondents said the cost of coverage (69%) was their top priority, followed by potential coverage (61%), customer service (36%), and (34%) said it exceeded the ease of understanding insurance contracts.
Many businesses continue to face significant challenges when dealing with insurance companies. For example, lack of clarity on coverage (27%), unnoticed premium increases (24%), complex claims process (20%), poor customer service (19%), and poor navigation of online platforms. Difficult (14%).
“While the cost of coverage is a top priority for consumers in today’s economy, it is clear that customer service and clarity are the areas where insurers can have the greatest impact,” Bee concludes. “Simplifying processes and providing a better digital experience may be the key to gaining consumer trust.”
Research method
Talker Research surveyed 2,000 ordinary Americans. This survey was commissioned by UserTesting and was managed and conducted online by Talker Research from August 29 to September 3, 2024.
