Insurity study shows consumer opinions shift about insurance use of AI

A new report released by Insurity found a shift in consumer support for AI use by property and casualty (P&C) insurance companies prior to last year. 

The 2026 AI in Insurance Report found 39% of consumers say it is a good idea for their insurance company to use AI to improve services. This is up from 20% in 2025. 

About 84% of consumers say they are using AI at least occasionally and 27% say they are using it daily, the report found. 

“As AI becomes embedded in writing, workplace productivity, health-related inquiries, and financial comparisons, it is no longer viewed as experimental technology but as part of how consumers make decisions and manage everyday risk,” the release said. “That widespread familiarity is beginning to influence how policyholders assess AI’s role in financial services, including insurance.” 

The report also found that resistance is easing. Last year, 44% of consumers said they were less likely to purchase a policy from an insurer that publicly used AI. In 2026, the percentage declined to 36%. 

Yet, most consumers have concerns about which tasks AI does for insurance. 

Nearly half of consumers distrust when AI is making decisions about claims approvals, fraud detection or policy adjustments and only one-third say they trust AI-driven insurance decisions. 

Another 22% said they would feel comfortable with AI filing a claim on their behalf and 16% are comfortable with AI canceling or renewing a policy. 

Consumers did seem more likely to support AI handling routine tasks, with 46% saying they’d let AI generate a quote and 39% responding that they would be comfortable with AI tracking claim status. Another 38% said they would use AI to update personal information. 

“Consumers have moved past the hype cycle,” said Jatin Atre, Insurity president, in the report. “They are not impressed by the fact that insurers are using AI. They care about how it is being used. If AI is deployed simply to cut costs or automate decisions without explanation, trust will erode. If it is deployed to make underwriting smarter, claims faster, and interactions clearer, with real oversight behind it, trust grows. The industry cannot treat AI as a marketing headline. It has to treat it as operating infrastructure.”

The survey was conducted online in February 2026 with more than 1,000 participants randomly selected. 

The National Association of Insurance Commissioners (NAIC) has rolled out an AI Evaluation Tool pilot program to help regulators understand how insurers use AI in 12 states.

The program started in March and will run to September. 

“It provides a structured way for states to review AI systems, promote transparency, and identify where additional oversight, training, or improvements may be needed,” an NAIC document states. 

NAIC approved a model bulletin for insurer AI use in 2023. It outlines the need for processes and controls to prevent possible AI inaccuracies, discriminatory biases, and data vulnerabilities.