Generative AI is transforming the way insurance customers interact with their providers, according to a recent report by the Geneva Association. The study explores global trends in the adoption of AI-driven tools by policyholders, as well as customer perceptions, benefits, and concerns across diverse markets.
The report draws on surveys conducted across multiple countries, revealing that adoption of generative AI is already widespread. Customers are actively using both insurer-provided tools—like chatbots, virtual agents, and automated claims assistants—as well as general-purpose platforms such as ChatGPT. Roughly 68% of respondents reported using general-purpose generative AI while shopping for insurance, with adoption highest in markets where digital integration is strong.
More than 80% of surveyed customers view insurers’ use of generative AI positively or are neutral, recognizing the potential to make processes faster, smoother, and more intuitive. AI tools are streamlining quoting, document submission, and policy guidance, providing round-the-clock support and expanding self-service options. Many users also leverage AI to compare products, interpret complex policy language, and prepare thoughtful questions before engaging directly with insurers—effectively becoming more informed and empowered in their decision-making.
Despite these benefits, the study highlights persistent concerns. Nearly 40% of respondents worry about losing access to human support, with this concern particularly pronounced in regions where customers traditionally expect personal interaction. Privacy and data security also loom large, with many customers uncertain about how their personal information is collected, stored, or utilized by AI systems.
Accuracy remains another key consideration. Over 40% of customers express concern about potential errors or “hallucinations” in AI outputs, particularly in critical areas like claims processing and underwriting. Transparency is crucial: customers increasingly want clear disclosure about when AI is being used, how decisions are made, and which data sets inform the outcomes.
Jad Ariss, managing director of the Geneva Association, emphasizes the importance of trust: “Trust is the foundation of the insurer-customer relationship. Generative AI has the potential to enhance nearly every stage of the insurance journey, but customers expect fairness, accuracy, and human empathy to remain central to insurance processes.”
Businesses are also adopting AI at a rapid pace. A survey of corporate insurance decision-makers found that 71% have deployed generative AI in at least one function, while more than 90% are exploring dedicated insurance solutions for AI-related exposures. In response, insurers are developing policy extensions and early-stage standalone products tailored to AI risks. Modular coverage structures, cross-sector partnerships, and adaptive product designs are emerging as key strategies to bridge protection gaps and support responsible AI adoption.
The rise of generative AI is also reshaping the cyber insurance landscape. Experts caution that the speed and sophistication of AI-enabled cyber threats may be outpacing traditional risk models. Attackers and defenders alike are leveraging AI in real time, forcing insurers to integrate AI-driven predictive models, continuous monitoring, and real-time intelligence into their underwriting frameworks. Companies are being urged to combine technological defenses with hands-on risk advisory, rather than relying solely on competitive pricing.
The report concludes that the long-term success of generative AI in insurance will depend on three critical factors: trust, regulatory clarity, and safeguards that ensure fairness, transparency, and continued access to human support. Insurers that strike this balance will not only enhance operational efficiency but also deepen customer confidence, creating a more resilient, future-ready insurance ecosystem.