As compared to any other generation, millennials are more likely to view AI as a positive development in P&C insurance according to Insurity’s 2024 AI in Insurance report. The report presents the contrasting perspectives of different generations toward AI technology and its impact on insurance.
Insurity, which published the report in February 2024, provides cloud software for insurance companies, brokers and MGAs.
The report reveals that millennials (born between 1980 and 1994) are the most enthusiastic proponents of AI in P&C insurance, with 33% responding that they would recommend their insurer to adopt AI.
Viewed as a transformative tool in the industry, millennials recognise AI’s potential to streamline processes and enhance customer experiences. The report said their endorsement stems from the practical benefits AI offers, including time-saving efficiencies and ease of use in their day-to-day lives. Automating routine tasks and providing instant support is a boon to busy millennials.
In contrast, Generation Z — born between 1995 and 2006 — approach AI with scepticism, with just 18% responding that they would recommend their insurers to adopt AI. The report found that while they understand the technology, they harbour reservations about its role in insurance.
Concerns such as privacy, transparency and the potential impact AI could have on the job market are top of mind for Generation Z.
The report said insurers need to address concerns or it 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 — tend to lack familiarity with AI and their responses are in line with Generation Z, with 16% saying they would recommend carriers adopt AI.
Insurers adopting AI and targeting this demographic should consider investing in education and communication to explain AI’s benefits and demystify its workings, said the cloud software company.
Many P&C insurers are embracing AI, actively integrating the technology into their operations to enhance policyholder experiences, the report noted.
Accelerated claims processing, personalised risk assessment, rapid fraud detection and AI chatbots are the most common case uses. M