Consumers Want Transparency in AI-Driven Processing for Severe Weather Claims, but Trust in Reliability Remains Low, According to Insurity Survey

January 23, 2025 at 10:43 AM EST

Insurity’s 2025 AI in Insurance Report highlights key insights on consumer confidence in AI for assessing and processing claims after severe weather events

Insurity, a leading provider of cloud-based solutions for insurance carriers, brokers, and MGAs, today released its 2025 AI in Insurance Report, shedding light on consumer sentiment around the use of artificial intelligence (AI) in claims processing after severe weather events. The report shows that while 64% of consumers believe transparency is critical when insurers use AI to assess and process claims, many remain skeptical of the technology’s reliability.

The findings reveal that 44% of consumers do not believe that AI-based damage assessments, such as those conducted using drones or satellite imagery, are more reliable than assessments performed by human inspectors. Additionally, while AI has the potential to improve the speed and efficiency of claims processing, only 28% of consumers agree that AI could help their insurer handle claims more efficiently after severe weather events.

This research highlights a critical gap between what consumers expect and what they trust. While there is strong demand for transparency, insurers need to do more than just open the black box of AI. To build trust, insurers must ensure their AI-driven assessments are accurate, easy to explain, and seamlessly integrated into their claims processes to provide meaningful benefits to policyholders. By demonstrating transparency and reliability, insurers can unlock the full potential of AI and create a more seamless, efficient claims experience.

Despite skepticism, there are signs of growing confidence. The report found that 38% of consumers feel confident filing a severe weather-related insurance claim if AI technology is used to validate their claim through satellite images and weather data. This suggests that when policyholders understand how AI can support the claims process, their comfort level increases.

For insurers, this represents a key opportunity to build stronger policyholder relationships by prioritizing transparency, education, and accountability. By clearly communicating how AI enhances claims accuracy and expedites damage assessments, insurers can bridge the trust gap and foster greater confidence during high-stakes moments when policyholders need support the most.

This survey was conducted online in January 2025, and more than 1,000 adult participants were randomly selected across the United States to ensure a representative sample. Respondents were asked a series of 19 questions, ranging from multiple-choice to scale-based, to gauge their opinions on AI in P&C insurance. Data analysis was performed to identify key patterns and insights.

To learn more about Insurity’s 2025 AI in Insurance Report, please get in touch with Elizabeth.Hutchinson@insurity.com.

About Insurity

Insurity is a leading provider of cloud-based software for insurance carriers, brokers, and MGAs. Insurity is trusted by 22 of the top 25 P&C carriers and 7 of the top 10 MGAs in the US and has over 400 cloud-based deployments. Through its best-in-class digital platform, unrivaled industry experience, and the industry’s most robust analytics offerings, Insurity is uniquely positioned to deliver exceptional value, empowering customers to focus on their core businesses, optimize their operations, and provide superior policyholder experiences. Insurity is a portfolio company of GI Partners and TA Associates. For more information, visit www.insurity.com.