Generative AI (Gen AI) is rapidly transforming the insurance customer journey, but its successful adoption will depend on insurers addressing core customer concerns around privacy, accuracy, and the loss of human connection, a new report by the Geneva Association (GA) has found.
Overall, the results revealed a generally positive attitude toward Gen AI tools, with over 80% of customers either in favour or neutral about insurers using Gen AI in customer interactions, indicating minimal outright resistance.
Around 50% of respondents reported that these tools have made interactions more efficient and intuitive, while another third find them somewhat helpful.
Gen AI is being used in two primary forms: insurer-provided tools like AI chatbots and automated claims assistants, and off-the-shelf, general purpose platforms such as ChatGPT.
Significant 68% of respondents have used Gen AI assistants when shopping for insurance, often leveraging them to research products, compare coverage, and clarify policy terms before ever contacting an insurer.
Such independent use of Gen AI is especially common in Asia (China and Japan) and less so in continental Europe (France and Germany); English speaking countries (the UK and the US) fall somewhere in between.
This shift empowers customers to be more informed and demanding, forcing insurers to recognise that the customer journey can now begin with a Gen AI query.
Gen AI assistants are making insurance services faster, more responsive, and highly personalised, which goes beyond the capabilities of price comparison websites, the report stated.
These tools can simplify complex or time-consuming tasks, like getting a quote or submitting documents, thanks to its ability to deliver instant, tailored responses. They also offer 24/7 support, and help demystify insurance for consumers.
However, this enthusiasm is tempered by significant concerns, the report highlighted. The first and biggest fear is the loss of the human element: nearly 40% of customers worry that Gen AI tools lack the personal engagement or empathy that a human agent provides.
This concern was most pronounced in markets like France, the UK, and the US, where over 40% cited the lack of human touch as a major issue.
Critical concerns also revolve around privacy and data security, as many people are uneasy about how AI systems use and protect their personal information.
Furthermore, over 40% of customers expressed concern about the accuracy and reliability of AI-generated information, acknowledging the risk of errors or “hallucinations”.
Customers also demand transparency, fearing “black box” algorithms that make opaque decisions about claims or coverage, and want clarity on when and how AI is involved in decisions.
“In summary, while customers appreciate the efficiency of Gen AI, it must not come at the cost of privacy, correct information, clear explanations, or the ability to reach a human when necessary,” the report stated.
From the insurer perspective, Gen AI presents a strategic opportunity to improve service and efficiency, but it also raises new challenges.
To successfully harness the power of Gen AI, the report advises insurers to adopt a strategic, customer centric approach.
Recommendations include embracing empowered customers by offering complementary services, such as ‘second opinion’ AI to validate general AI information. Insurers must also “keep humans in the loop,” using hybrid AI-human service models where Gen AI handles routine queries, but human agents step in for complex, emotional, or high-stakes cases.
The report also recommends insurers to invest in robust data infrastructure and governance to feed AI models accurate, unbiased information. This, along with strong investment in privacy-preserving techniques like encryption, along with compliance with emerging regulations such as the EU’s AI Act and existing laws like GDPR are essential to build trust and prevent data miss use.
Jad Ariss, Managing Director of the Geneva Association, said: “Trust is the foundation of the insurer-customer relationship. Gen AI has the potential to enhance almost every stage of the insurance customer journey, but customers want assurance that fairness, accuracy, and human empathy remain central to insurance processes.
“We hope our report guides insurers in deploying Gen AI tools effectively while preserving human connection and customer confidence.”
Ruo (Alex) Jia, Director Digital Technologies at the Geneva Association and lead author of the report, added: “As customers become more comfortable and engaged with Gen AI tools, insurers have an opportunity to reimagine service delivery, strengthen transparency, and create more personalised, value-driven relationships.
“Strong data infrastructure and hybrid models that keep humans ‘in the loop’ for certain interactions will improve the customer experience and enable the agility needed to thrive in today’s AI-powered world.”
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