“Just as we’ve seen with the internet and mobile apps, AI is rapidly becoming a critical conduit to key policy shopping, research and account management decisions among auto and home insurance customers,” said Tony Soloman, director, insurance intelligence at JD Power.
Soloman was commenting on JD Power’s latest insurance study that found nearly one-third (29%) of auto and home insurance customers are using artificial intelligence (
AI) tools to research products and coverage, service their accounts, understand coverage before submitting a claim or shop for a quote or new policy.
The new AI Insurance Experience Study concludes that AI-provided guidance is having an impact on decision-making. More than one-third (37%) of customers who used AI to research products or coverage options changed their policy based on the information they received. Among those who used AI to shop for a new policy, 42% purchased a policy as a result.
Consumers are using AI tools provided by insurers as well as third party websites or apps. As expected, younger customers are more likely to trust the technology.
Challenge and Opportunity
According to Soloman, the emergence of AI represents a challenge and opportunity for insurers.
“First, the tools they provide on their websites and mobile apps need to deliver a comprehensive, helpful user experience,” he said. “In addition, insurers need to recognize that many customers are using third-party AI chatbots an
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d apps to conduct research and compare policies, so it is critical to stay on top of how their data and content are being ingested and interpreted by the major large language models.”
Although AI use is on the rise, JD Power found that a majority of insurance customers are still not using AI, with the most common reasons given for choosing not to use AI being a lack of familiarity, habit and lack of trust in the results.
“It’s still relatively early in the evolution of insurance-specific AI tools developed by insurers to help their customers understand complex concepts, manage their accounts and compare coverage options, but these tools are on their way to becoming some of the most important investments insurers w
ill make during the next several years,” said Eric McCready, director of digital solutions at JD Power.
Last November in another survey conducted by J.D. Power, customers said they did not see a personal benefit in using AI for major decisions versus smaller, nuts-and-bolts interactions.
The JD Power AI Insurance Experience Study is based on 8,352 customer evaluations across 24 insurance brands and eight third-party AI tools and was fielded from June through July 2026.
