Chinese insurance consumers showed the highest acceptance of AI driven insurance solutions whilst Australians were the least receptive to these according to GlobalData 2024 Emerging Trends Insurance Consumer survey.
The survey conducted by the global data and analytics company also revealed that AI is also seen as an effective tool for customer service, reducing reliance on traditional communication channels. The survey found that the global insurance industry in 2025 will be shaped by AI, especially with 43% of global consumers comfortable using AI tools to determine premiums.
Besides AI, the industry in 2025 will mainly be affected by environmental, social and governance (ESG) considerations and cyber risk management.
GlobalData senior insurance analyst Ben Carey-Evans said, “Enough consumers are already comfortable with AI tools that they can provide an effective and 24/7 channel of communication, thus reducing stress on phone lines and email accounts.”
ESG is already a central part of insurers’ strategies, but this is expected to continue to grow and become more entrenched in policies over the next decade.
Mr Carey-Evans said, “As it stands insurers have relatively long-term targets and individual initiatives built around ESG and sustainability, but very few mainstream products and policies have an ESG focus.
“Consumer demand globally will be central in the insurance industry’s fight against climate change. We found that over half (51.3%) of global consumers believed insurers had a role to play in this aspect, while a further 20.6% were unsure.”
The GlobalData report said the insurers are expected to leverage AI-driven solutions, expand personal cyber coverage and integrate technologies such as electric vehicles (EVs) and the Internet of Things (IoT) to meet evolving consumer demand.
ESG remains a priority, with 51.3% of consumers believing insurers have a role in addressing climate change, whilst 20.6% were undecided.
However, ESG-focused insurance products remain limited, with current efforts largely centered on long-term targets and individual initiatives.
Cyber insurance continues to be a major theme, though personal cyber insurance remains less developed than commercial policies.
The survey found that 26.4% of consumers were interested in personal cyber coverage, with demand highest amongst 18 to 24-year-olds at 36.7%. Insurers see an opportunity in this market, though pricing and underwriting challenges remain.
The transition to EVs is also gaining traction, with 31.6% of combustion vehicle owners planning to switch within two years and 67.7% within a decade. Additionally, 54.5% of consumers are open to purchasing insurance directly from manufacturers, posing both competitive threats and collaboration opportunities for traditional insurers.