Global professional services company Accenture reports that artificial intelligence is becoming an important factor in consumers choosing and renewing home and auto insurance. According to its latest report, more than 70% of people’s insurance decisions are expected to be affected by artificial intelligence in the next 12 months. Consumer Pulse Study.
IInsurance has traditionally been a complex product category for customers, with dense policy documentation, technical wording and lengthy decision-making processes. Although comparison sites and brokers simplify access to information, many consumers still prefer to stay with their existing provider at renewal time rather than switch proactively.
Accenture’s “Conversations with My AI Agent” report, a global study of more than 25,000 consumers in 16 countries, highlights that artificial intelligence is already changing the way people discover, evaluate and compare home and auto insurance. Research suggests that habitual updating behaviors may wane as AI tools take a more active role in decision-making.
Accenture also pointed to the wider impact on insurers and wider distribution networks. The traditional roles of comparison sites and intermediaries may come under pressure if AI systems can review policy details, compare coverage from different providers and potentially initiate switching at renewal time. It also requires insurers to rethink how they structure, describe and position their products, especially as artificial intelligence systems increasingly serve as the interface between brands and customers.
Research shows that 82% of insurance customers already use generative AI, and 72% expect it to impact at least half of their insurance purchases within a year. Among Gen Z and Millennials, this rises to 86%, demonstrating the rapid adoption of AI among younger demographics and reinforcing the fact that AI is already embedded in the insurance buying process.
Accenture found that 37% of consumers said generative AI has led them to consider insurance companies they had not previously considered, while 47% said generative AI helped them find better products than they would have found independently. Overall, 70% of people believe AI tools can help them make faster, more informed decisions.
The company also noticed a shift in the way consumers research insurance, with generative AI platforms replacing comparison sites among younger users. For Millennials, 27% now rely on AI tools versus 16% using comparison sites, compared with 26% versus 11% for Gen Z, indicating a growing shift in how early stage research is conducted.
Importantly, Accenture’s findings show that consumers are not just focused on finding cheaper policies. Some 46% of respondents said they trust AI recommendations in insurance and want them to highlight product quality, claims performance and price. This puts pressure on insurance companies to ensure that AI systems can clearly explain and evaluate their products.
Some 33% of respondents said they would be willing to have a personal AI assistant handle customer service tasks such as claims, rising to 43% among Millennials. However, only 8% are willing to fully automate the insurance process end-to-end without human oversight. A larger group (42%) prefers to review options themselves before making any decisions, highlighting a strong preference for transparency and user control.
Payments remain the most sensitive area, with 31% unwilling to let AI make payment decisions. Of those who are open to it, 41% prioritize strong security and fraud protection over features like transaction visibility or cancellation controls.
Ravi Malhotra, Accenture’s insurance industry leader, commented: “New insurance customers increasingly become AI agents acting on behalf of others, which will not renew out of habit, accept unexplained premium increases, or ignore better offers elsewhere.”
“This presents both a challenge and a significant opportunity for insurance companies. Data shows that consumers are not just asking AI to find the cheapest policy, they want policies whose surface quality, claims reliability and coverage match their actual needs.
“This means that the insurers that win in AI-mediated markets are those whose propositions are clear, verifiable and truly competitive – not just on price, but on what matters. This means making products machine-readable and claims verifiable, ensuring visibility into agent comparisons and decision-making, and investing in the human moments that consumers are not yet ready to entrust.”
