AI has quietly become part of our daily lives, from finishing emails to recommending what we watch or buy. Its influence on consumer behavior is subtle but profound and has reshaped expectations in ways many of us barely notice.
Insurance is no exception. The complexity of the industry makes it particularly suited to AI-driven simplification, with consumers bringing their expectations of AI-driven speed and ease from other parts of their lives to the insurance shopping experience. Understanding how AI can transform insurance is now a key business priority.
How AI is shaping insurance customer expectations
Digital platforms have shifted the baseline for service across industries. The ability to order groceries online and stream personalized content has trained consumers to expect convenience and personalization at every touchpoint. However, when they interact with insurers, the contrast can be stark.
Insurers, it can be helpful to ask yourselves why an industry capable of managing risk at massive scale still relies on processes that feel slow, opaque, and frustrating. For consumers, the “AI-first” mindset that has been introduced to other parts of their lives now influences how they evaluate insurance. They no longer measure insurers solely against one another but instead against every digital experience they encounter.
AI and insurance technology
Across property and casualty insurance, AI is already switching up customer experiences. Chatbots and digital assistants handle routine questions and triage claims around the clock. Predictive models speed up quoting, underwriting, and approval processes, while usage-based insurance programs leverage real-time driving data to create flexible, personalized coverage. Fraud detection algorithms can scan massive datasets, flagging anomalies at speeds humans never could.
Individually, these innovations may seem incremental. But together, they redefine how customers engage with insurers, and the adjustments that insurers will need to consider going forward. For example, companies like Lemonade, with their rapid claims processing, or Progressive, with their usage-based programs, already illustrate not only what is possible but also what consumers now expect.
Pricing AI-powered insurance software to reflect its true value will also be a major focus for insurers. At our ITC Masterclass, we’ll explore how insurers can set prices that reflect the real benefits AI brings, including smarter decisions, faster service, and more personalized experiences, so customers see the value and insurers capture it too. |
Why insurance is particularly ready for AI
Insurance is uniquely positioned to benefit from AI adoption, perhaps more so than many other industries. Here’s why:
- Complex products: Policies are often difficult for consumers to understand. AI can translate technical terms into clear, accessible language.
- Data-heavy operations: Insurers handle massive datasets, customer information, claims histories, and risk profiles, which makes them a natura fit for AI’s ability to analyze and process information at scale.
- Rising pressures: Costs are climbing while teams are expected to deliver more with fewer resources. AI automation can streamline repetitive or administrative work.
- Customer pain points: Slow quotes, lengthy claims processes, and unclear coverage explanations remain common frustrations. AI can directly address these issues, improving customer experience and trust.
AI presents an opportunity to address these frustrations directly, improving experiences and building trust.
Balancing AI and the human touch in insurance
Despite AI’s growing role, human involvement remains critical. Technology is powerful at handling repetitive, data-heavy work like pulling records, comparing policies, or flagging anomalies. But it cannot replicate empathy, nuanced judgment, or trust, which are qualities essential in high-stakes or emotionally sensitive situations.
Instead of spending their days on routine processes, human agents and advisors are increasingly stepping into the role of interpreters and guides. They help customers make sense of AI-generated insights, offer reassurance when claims involve complex or emotional circumstances, and provide context that technology alone cannot deliver. This is why we feel that the future of insurance is not fully automated, rather it is hybrid. AI delivers speed and efficiency at the front end, while humans provide the connection and judgment that customers still value.
Key questions for insurers on AI adoption and strategy
During ITC, we’ll explore the critical questions every insurer should consider as AI becomes a bigger part of the business. Attendees will not only discuss these questions but also see real-world examples of best practices in action. Some key questions include:
- How will the role of the agent change over the next decade?
- Which skills will be most valuable for insurance professionals as AI takes on more administrative tasks?
- How can insurers balance efficiency with empathy to maintain customer trust?
- To what extent will regulation shape or limit AI adoption?
Thinking through these questions will help insurers understand both evolving customer expectations as well as competitors who are already leveraging AI-driven strategies.
The future of insurance and AI at ITC
AI is not eliminating the need for human involvement in insurance, but it is changing where humans add the most value. Focusing on streamlining operations through AI while empowering their people to deliver high-impact, human-driven interactions is the balance that insurers should aspire for.
At our ITC Masterclass on October 14, attendees will explore these ideas in depth. We’ll dissect real-world examples, review actionable insights, and discuss the new expectations of both distribution channels and customers. The masterclass is designed to provide practical takeaways, equipping insurance leaders with the knowledge to leverage AI while keeping the human connection at the center of their operations.
This session is designed for insurance leaders who are looking to walk away with clear takeaways on how to apply AI to improve efficiency, elevate service, and strengthen trust across the value chain.
