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AI tools are shaping auto and home insurance decisions, JD Power finds
JD Power’s study found 29% of auto and home insurance customers use AI to research or manage policies, and among AI users, 37% changed coverage and 42% bought new policies.
JD Power says artificial intelligence is becoming a more common way for auto and home insurance customers to research coverage, manage accounts, prepare for claims, and shop for quotes, based on its latest AI Insurance Experience Study, according to Insurance Journal.
The study found that nearly one-third, 29%, of auto and home insurance customers use AI tools for activities tied to purchasing and service decisions, and it suggests those AI inputs are influencing outcomes.
Among customers who used AI to research products or coverage options, 37% changed their policy based on the information they received, and among those who used AI to shop for a new policy, 42% purchased coverage as a result.
JD Power also said consumers use a mix of insurer-provided AI and third-party AI websites or apps, with younger customers more likely to trust the technology, and it highlighted a challenge for insurers to improve their own digital experiences while tracking how third-party AI tools ingest and interpret insurer data and content.