Consumers prefer human insurance advisors, but AI adoption is growing

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

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

According to the survey, 56% of respondents would rather endure daily inconveniences – such as sitting in traffic (10%), moving back in with parents (19%), or going to a concert they don't like (24%) – than navigating through insurance registration, showing widespread frustration with current procedures.

Insurance complexity and adaptation to technology

The survey highlighted the ongoing challenges consumers face with insurance, particularly around enrollment 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 problems

Survey participants across Australia, the US, and the UK showed a clear preference for dealing with frustrations not related to managing the complexity of insurance:

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

Trust versus provider confusion

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

However, choosing the best provider continues to pose difficulties for a large proportion of respondents.

Information spaces

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

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

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

Ongoing problems

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

• 27% of respondents in the US, 28% in the UK, and 32% in Australia reported challenges understanding the details of their installation.
• Unexpected premium increases were cited as a concern by 24% of respondents in the US, 23% in the UK, and 27% in Australia.
• Complex claims processes were a problem for 20% of US respondents and 23% of respondents in both the UK and Australia.

AI as an emerging tool for insurance

While human advisors remain the preferred choice for many consumers, AI is increasingly emerging as a tool that can help make insurance decisions easier.

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

Looking ahead, 45% of Australians, 39% of UK respondents, and 33% of US respondents think AI can play an important role in comparing insurance plans.

Bee Nookala, senior marketing manager for insurance solutions at UserTesting, noted that consumers are asking for transparent and straightforward insurance processes.

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