The modern consumer expects seamless digital interactions, effortless convenience, and personalized experiences, regardless of the brand or industry with which they interact. For the insurance industry, decades of technical debt – much of it in the form of legacy systems – combined with challenging market conditions, make these expectations harder to meet. Each year, we commission an independent, global survey of 3,000 consumers to understand what they want from their insurers, their attitudes toward technologies, and what insurance organizations need to do to win and retain their business.
This year, we learned that insurance customers aren't just warming to artificial intelligence – more than half are ready to see what it can deliver. However, beneath the headlines, our research revealed four key takeaways for insurance companies.
1. Insurance customers are open to AI, but with conditions
The standout finding from our research is that one in two people (51%) said they would value AI being used to suggest changes to their insurance plan. That number rises significantly for younger respondents, with Millennials leading the pack at 62% and Gen Z following closely behind at 58%.
We also saw a more comfortable attitude toward AI when it comes to their personal information: only one in three expressed hesitation over AI handling their information securely (32%) or ethically (31%).
But insurers should not take this as carte blanche for their AI plans, especially when it comes to customer communications. Consumers are more likely to support the use of AI when it results in faster response times (53%), more accurate communications (44%), or cost savings (42%). Without those tangible benefits, new AI features could receive a cooler welcome.
Generational differences should also be taken into consideration. Silent Generation consumers were less likely to value AI's suggestions for their insurance plans (32%) and were more hesitant about AI handling their information securely or ethically (52%). To address these concerns, older customers could be given more opportunities to opt out of AI use. Insurers could also invest in communications campaigns that help reassure these customers of the safeguards in place when AI is used, and demonstrate the tangible benefits they can experience.
2. Customers want digital data collection options, not just fillable PDFs
While consumers may be warming to AI in their interactions with insurance companies, they are already expressing a widespread preference for digital tools when providing information. Over three-quarters (77%) said it's vital that insurers offer digital data collection or forms, instead of manual processes that involve printing, scanning or mailing.
This wasn't just a majority opinion of younger consumers. 71% of Baby Boomers and 63% of Silent Generation respondents also favor digital processes.
And insurers can't just digitize their paper forms and be done with it. When given the choice between completing a fillable PDF or a guided digital form, consumers chose the guided option by a margin of almost two to one (63% vs. 37%). Even more surprising was the generational preference: Respondents from the Silent Generation tied with those from Generation X as the most likely to prefer guided digital forms (67% each).
Accommodating these data collection preferences will be critical to winning and retaining customers. Insurers that fail to do this will risk losing business, as two-thirds of people (65%) said they would likely end their interaction with an insurance company if the data collection or forms process is too difficult.
3. There's room for omnichannel improvement
Opinions about omnichannel communications are a mixed bag for insurance customers, with slightly over half (54%) saying they are satisfied with their insurers' omnichannel experience. A similar proportion agreed that insurance companies always or almost always communicate with them on their channel of choice (55%). Given that omnichannel communications have been part and parcel of customer experiences for the better part of a decade, merely having a passing grade should be a cause for concern among insurers.
To improve on those scores, organizations should start by ensuring they're communicating on preferred channels. On this front, the data is clear: The more channels, the merrier. While email was the resounding favorite for 44% of all respondents, the majority were split between a mix of old and new technologies. Encrypted messaging tied with print/mail, each ranking as a preference for 12% of consumers, while SMS was preferred by just 17% of respondents and web/applications by only 14%.
Insurers also need to check they're not making assumptions based on their customers' ages. Despite being the oldest group surveyed, Silent Generation respondents were the most likely to prefer email (48%). Just 39% of the youngest group, Generation Z, shared the same sentiment.
The lesson here is to prioritize choice and consistency. Because insurers cannot presume their customers' communication preferences based on age, they must offer a wide range of options and ensure that each channel delivers at a level that exceeds consumer expectations.
4. Insurers have upped their game on customer communications
Despite some mixed feelings on specific areas of communications, insurers should take pride in their overall performance. 60% of consumers now rate their insurance companies' communications as good or excellent, a 41% increase from 2024. Adding to the good news is that nearly two-thirds (65%) feel they can trust insurance companies, a valuable attribute in an increasingly discerning consumer environment.
These findings aren't just crucial to improving customer experiences and retaining business. Good communications drive business growth. Four out of five respondents (78%) said they were likely to recommend an insurance company to a friend if their communications exceeded expectations.
Our research shows that today's customers have clearly defined preferences: They're ready for AI but demand real, visible benefits; they favor intuitive, guided digital experiences over outdated paperwork; and they expect insurers to deliver consistent communications through their channels of choice. Insurers must focus their digital investments on these critical areas to build stronger, trust-driven customer relationships, differentiate themselves in an increasingly competitive marketplace, and position themselves for sustained growth.
