Consumers prefer human insurance advisors, but AI adoption grows

UserTesting, a provider of experience research, has released a global survey examining consumer preferences for insurance advice and the potential role of artificial intelligence (AI) in the insurance industry.

The survey – conducted by Talker Research – surveyed 4,000 adults across Australia, the US, and the UK.

According to the survey, 56% of respondents would rather endure everyday inconveniences – such as sitting in traffic (10%), moving back in with parents (19%), or attending a disliked concert (24%) – than navigate insurance enrollment, illustrating widespread frustration with current processes.

Insurance complexity and technology adaptation

The survey highlighted the ongoing challenges consumers face with insurance, particularly around enrolment and provider selection.

While many respondents feel confident in their understanding of their coverage, the complexity of choosing the right insurance provider and navigating the insurance landscape remains a significant pain point.

Comparing hassles

Survey participants across Australia, the US, and the UK showed a clear preference for dealing with unrelated frustrations over managing insurance complexities:

• 13% of US respondents said they would rather sit in traffic, compared to 9% of UK and Australian respondents.
• 14% of US participants would listen to one song on repeat for an extended period, while 12% of those in the UK and Australia would do the same.
• 22% of US respondents would choose to live with their parents again, compared to 18% in the UK and Australia.

Coverage confidence versus provider confusion

While many consumers expressed confidence in their coverage, choosing a provider remained a challenge: 65% of US respondents, 68% in the UK, and 60% in Australia said they were confident in understanding their insurance coverage.

However, selecting the best provider continues to present difficulties for a significant portion of respondents.

Knowledge gaps

The survey also identified areas where consumers feel most and least informed about their insurance options:

• In the US, respondents expressed the most confidence in health insurance (78%) and auto insurance (75%).
• In the UK, the highest confidence was in home insurance (75%) and auto insurance (68%).
• Australians showed the most confidence in auto (72%) and health insurance (69%).

Conversely, Americans reported the lowest levels of confidence in home (61%) and pet insurance (49%). UK respondents were least confident in pet (53%) and dental (44%) insurance, while Australians felt least knowledgeable about dental (42%) and pet (41%) insurance.

Ongoing issues

Despite their confidence in coverage, many consumers still struggle with aspects of the insurance process:

• 27% of US respondents, 28% in the UK, and 32% in Australia reported challenges in understanding the details of their coverage.
• Unanticipated premium increases were cited as a concern by 24% of US respondents, 23% in the UK, and 27% in Australia.
• Complicated claims processes were an issue for 20% of US respondents and 23% of respondents in both the UK and Australia.

AI as an emerging tool for insurance

Although human advisors remain the preferred choice for most consumers, AI is increasingly seen as a tool that can help simplify insurance decisions.

The survey revealed that 36% of respondents in the US and UK, and 25% in Australia, believe AI can assist in understanding complex insurance information.

Looking ahead, 45% of Australians, 39% of UK respondents, and 33% of US respondents think AI could play a useful role in comparing insurance plans.

Bee Nookala, principal marketing manager for insurance solutions at UserTesting, commented that consumers are asking for more transparent and straightforward insurance processes.

“While human advisors remain critical, AI offers insurers a way to help customers navigate complex policies more efficiently, provided human support is always an option when needed,” she said.