Millennials Lead in AI Comfort and Trust, While Gen Z Emerges as Key Audience for AI-Driven P&C Insurance Solutions, Insurity Survey Finds

February 25, 2025 at 09:59 AM EST

The Insurity 2025 AI in Insurance Report reveals generational divides in AI adoption and trust, highlighting critical insights for insurers navigating the future of P&C insurance

Insurity, a leading provider of cloud-based software for insurance carriers, brokers, and MGAs, today announced new findings from its 2025 AI in Insurance Report, shedding light on generational attitudes toward artificial intelligence in P&C insurance. The report reveals that Millennials continue to lead in AI comfort and trust, while Gen Z represents a rising market for AI-driven insurance solutions.

Millennials are the most comfortable generation when interacting with AI in insurance, with 32% expressing ease with the technology. They also lead in trusting AI’s ability to predict severe weather risks to their property at 30%, while Gen Z trails at 23%. However, Gen Z is the most likely generation, at 16%, to purchase policies from insurers that use AI, indicating a growing market for AI-powered solutions. Millennials and Gen Z comprise an expanding segment of the insurance market, and their comfort with AI presents significant opportunities for insurers to introduce innovative, AI-driven tools to attract and retain these customers.

Regarding AI’s role in proactively monitoring severe weather, Baby Boomers surprisingly show the highest comfort level at 51%, followed by Gen X and Millennials at 45%. This indicates that older generations might be more receptive to AI in certain scenarios that offer clear and tangible advantages, such as real-time risk monitoring and alerts.

"Understanding these generational differences is crucial for insurers aiming to enhance their AI strategies," said Sylvester Mathis, Chief Insurance and Chief Revenue Officer at Insurity. "Millennials have already embraced AI as part of their insurance experience, making them an ideal audience for advanced AI-driven solutions. Meanwhile, Gen Z offers insurers a chance to engage a digitally native generation that is very receptive to AI-powered services, even if their trust levels are still developing. Insurers who tailor their messaging and demonstrate AI’s real-world benefits will be well-positioned to drive adoption and enhance customer relationships across all demographics."

As AI continues to reshape the insurance landscape, these findings highlight the significance of generational targeting in AI-driven innovation. By understanding the viewpoints of various age groups regarding AI adoption, insurers can refine their approach, provide more personalized experiences, and enhance trust in AI-powered solutions.

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 and how AI is shaping the future of P&C insurance, 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.