New England More Open to AI Use in P&C Insurance, While Concerns Remain High in West North Central and Mountain Regions of U.S., According to Insurity Survey

February 27, 2025 at 10:28 AM EST

Consumers in some U.S. regions embrace AI for severe weather monitoring, while others remain wary of its impact on premiums

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, uncovering regional disparities in consumer attitudes toward AI-driven solutions in P&C insurance. While some areas embrace AI’s potential to enhance severe weather monitoring, others are skeptical, particularly regarding its impact on insurance premiums. These findings underscore the urgent need for insurers to tailor education and transparency efforts based on regional concerns.

According to the report, the regions of New England at 62% and West North Central at 57% show the highest comfort levels with AI for severe weather monitoring, suggesting these areas recognize the value of AI-driven risk assessment tools. In contrast, comfort levels are lowest in the regions of East South Central at 36% and Mountain 38%, where skepticism persists regarding AI’s role in monitoring weather risks.

Concerns among consumers regarding AI-driven risk assessments affecting premiums are particularly intense in the West North Central (100%) and Mountain (69%) regions. This reflects an increased anxiety that AI may result in steeper costs or biased pricing models. This skepticism challenges insurers, who need to establish trust by showing how AI improves risk assessment without causing disproportionate effects policyholders.

"The report’s findings indicate that consumer trust in AI varies significantly, underscoring the need for a more localized approach," said Sylvester Mathis, Chief Insurance and Chief Revenue Officer at Insurity. "Understanding these regional differences allows insurers to take a more strategic approach, building trust where skepticism exists and expanding AI-driven capabilities where adoption is strong. By addressing consumer concerns head-on with transparency and demonstrating how AI can enhance risk assessment without unfairly impacting premiums, insurers can strengthen customer relationships, improve retention, and drive more profitable underwriting decisions."

Insurers operating in regions that are cautious about AI should prioritize clear communication, demonstrating how AI is used responsibly and fairly. Meanwhile, in areas where AI adoption is already gaining traction, insurers can expand AI-driven capabilities and enhance engagement through real-time insights and predictive analytics.

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.