Has enrolling in insurance become too much of a painful process? A number of Americans would rather deal with endless traffic than sit down and sort through insurance options.
The poll of 2,000 U.S. adults found 58% would more willingly experience a number of life’s annoyances if it meant never stressing about understanding insurance policies or enrollment processes ever again.
In addition to enduring endless traffic (13%), people said they would rather live with their parents again (22%), go to the concert of an artist they don’t like (22%) and even listen to one song on repeat for an entire year (14%).
ð¡ << Broadcast-ready version of this research story >> ð¡
Commissioned by UserTesting and conducted by Talker Research, the study aimed to understand the frictions people experience as insurance enrollment undergoes a digital revolution.
Although 65% of respondents said they felt confident in their understanding of what they’re insured for, 36% of consumers are turning to artificial intelligence (AI) as a helpful tool for making sense of complex insurance information.
Most consumers said they prefer getting their insurance advice from human advisors, opposed to AI (86%, compared to 14%).
However, many still believe AI can assist them in some way: either by comparing insurance plans (33%) or by simplifying coverage terms that often overwhelm the average consumer (25%).
In contrast to getting advice from human advisors, one in three respondents said they felt more comfortable sharing their personal information with AI instead of humans — claiming they felt AI would better protect their privacy (43%) and wouldn’t judge them (35%).
Despite the appeal, some skepticism remains. Over a third (38%) of respondents said they feel less comfortable sharing personal information with AI, stating they don’t trust AI as a whole (56%) and citing a fear that their data would be shared without consent (44%).
Other concerns include the lack of a personal connection (40%) and doubts about the accuracy of AI-generated recommendations (36%).
Even with their concerns, 38% said they’d be “open to using AI” for insurance advice in the future.
“Consumers are increasingly embracing AI to demystify insurance policies,” said Bee Nookala, Principal Marketing Manager, Insurance Solutions at UserTesting. “Many trust AI to offer more privacy and unbiased advice than a human agent. It’s clear that AI is poised to play a crucial role in transforming the future of insurance, but it’s equally important that companies balance this with the human touch customers still crave.”
The study also revealed varying levels of insurance knowledge among respondents. People felt most informed about health insurance (78%) and auto insurance (75%), followed by dental insurance (65%), home insurance (61%) and pet insurance (39%).
When explaining what factors were most important to them while choosing insurance, respondents said cost of coverage (69%) was top priority, surpassing potential coverage (61%), customer service (36%) and ease of understanding (34%).
Many still encounter significant challenges when dealing with their insurance providers, including a lack of clarity on coverage details (27%), unnoticed premium increases (24%), complicated claims processes (20%), poor customer service (19%) and difficulties navigating online platforms (14%).
“In today’s economy, cost of coverage is the top priority for consumers, but it’s clear that customer service and ease of understanding are the areas where insurers can make the biggest impact,” continued Bee. “Simplifying the process and offering better digital experiences could be the key to winning consumer trust.”
Survey methodology:
Talker Research surveyed 2,000 general population Americans; the survey was commissioned by UserTesting and administered and conducted online by Talker Research between Aug 29 and Sep 3, 2024.
We are sourcing from a non-probability frame and the two main sources we use are:
Traditional online access panels — where respondents opt-in to take part in online market research for an incentiveProgrammatic — where respondents are online and are given the option to take part in a survey to receive a virtual incentive usually related to the online activity they are engaging in
Those who did not fit the specified sample were terminated from the survey. As the survey is fielded, dynamic online sampling is used, adjusting targeting to achieve the quotas specified as part of the sampling plan.
Regardless of which sources a respondent came from, they were directed to an Online Survey, where the survey was conducted in English; a link to the questionnaire can be shared upon request. Respondents were awarded points for completing the survey. These points have a small cash-equivalent monetary value.
Cells are only reported on for analysis if they have a minimum of 80 respondents, and statistical significance is calculated at the 95% level. Data is not weighted, but quotas and other parameters are put in place to reach the desired sample.
Interviews are excluded from the final analysis if they failed quality-checking measures. This includes:
Speeders: Respondents who complete the survey in a time that is quicker than one-third of the median length of interview are disqualified as speedersOpen ends: All verbatim responses (full open-ended questions as well as other please specify options) are checked for inappropriate or irrelevant textBots: Captcha is enabled on surveys, which allows the research team to identify and disqualify botsDuplicates: Survey software has “deduping” based on digital fingerprinting, which ensures nobody is allowed to take the survey more than once
It is worth noting that this survey was only available to individuals with internet access, and the results may not be generalizable to those without internet access.
