Insurance and AI — Client Trust is Mixed

AI and insurers using it to predict the weather is a new twist in the AI debate.

When it comes to insurance companies using AI to monitor weather-related risks in real time, just 45% of customers are comfortable that the prediction will be accurate. Editor’s note: That seems to be pretty much in line with how most of us feel about how accurate our local weather forecasters and weather channels happen to be.

When it comes to whether the weather prognostications will impact their premiums and coverage, just 42% are trusting.

All of this comes from the cloud-based provider, Insurity and its 2025 AI in Insurance Report. Insurity CEO Chris Lafond offered more from the report:

• A mere 26% say they are more likely to trust an AI-generated early warning compared to traditional weather reports
• Just 20% think it’s important for their insurer to do this at all

“Consumers want the benefits of AI-driven weather insights, but they’re understandably cautious about how these predictions may affect their policies,” Lafond said. “For insurers, the year ahead presents an opportunity to build trust by prioritizing transparency and accuracy while demonstrating how AI can proactively protect customers without introducing unnecessary costs.”

Source link: Business Insurance — https://bit.ly/4hdfmN7