Policygenius Survey: Majority of Consumers Value Data Privacy and the "Human Touch" Over Savings in Home and Auto Insurance
83% say they wouldn't feel comfortable with AI handling their home and auto insurance claims
NEW YORK, Aug. 24, 2021 /PRNewswire/ -- A recent survey commissioned by Policygenius explored consumer sentiment toward new tech being deployed by home and auto insurance companies.
The survey found that most consumers prefer being able to talk with an actual human and are wary of fully automated insurance decision making. More than two in three consumers (72%) said they would be uncomfortable purchasing insurance without speaking to a human being, and 64% would be uncomfortable filing claims on a website or app without human interaction.
Claim reviews by artificial intelligence was a sticking point for many: Only 17% of people were comfortable with the idea of their home, renters, or auto insurance claims being reviewed exclusively by artificial intelligence, and almost 60% said they would rather switch insurance companies than let artificial intelligence review their claims.
The survey also found that consumers value privacy more than potential savings. More than half of drivers (58%) said no insurance discount was worth using an app that collected data about their driving behavior and location. Among the 43% of drivers willing to use this type of app, 74% said they would only use it if it lowered their rates by more than half.
Privacy concerns extend to home and renters insurance savings potential as well. Just one in three (32%) respondents said they'd be willing to install a smart home device that collected personal data, such as doorbell cameras, water sensors, or smart thermostats, even if doing so reduced their home or renters insurance rates by more than half. More than half (57%) of respondents felt no discount was worth using these devices and ultimately giving up privacy.
"We're seeing home and auto insurers integrate various data collection and analysis technology into policy distribution, pricing, and claims, but it's clear consumers aren't readily willing to trade personal data, or give up the human touch for marginal savings," Pat Howard, property and casualty insurance expert at Policygenius, said. "Some companies use technologies like usage-based auto insurance and artificial intelligence in their pricing and payout processes, but you can't easily put a price on consumer peace of mind."
The survey also found that consumers are wary about the prospect of data-rich big tech companies expanding into home and auto insurance. Two in three (67%) respondents said they wouldn't be comfortable with a major tech company like Amazon insuring their home or car, and 40% said it would make them very uncomfortable.
Additional findings from the Policygenius Home & Auto Insurance Technology Survey 2021 include:
- Less than half (43%) of policyholders would agree to let a drone evaluate their property as part of a home insurance storm damage claim, even if it led to an expedited insurance payout.
- 67% said that no home or renters insurance discount would be worth installing a smart doorbell camera that shares facial recognition data with third parties. Just a quarter (24%) of respondents said they would agree to this even if it cut their insurance bill in half.
- Two in three (66%) consumers between 25 and 54 years of age said they were uncomfortable purchasing insurance online without talking to a human, and more than three in four (78%) consumers over 55 felt the same.
Policygenius' survey is based on responses from a nationally representative sample of 1,500 Americans ages 25 and over, conducted by Google Surveys from June 4 through July 2, 2021. You can find more results from the survey here.
About Policygenius:
Policygenius transforms the insurance journey for today's consumer, providing a one-stop platform where customers can compare options from top insurance carriers, get unbiased expert advice, buy policies, and manage their insurance portfolio, in one seamless, integrated experience. Our proprietary technology platform integrates with the leading life, disability, and home and auto insurance carriers and delivers an exceptional digital experience for both consumers and insurance carriers. Since 2014, our content, digital tools and experts have served as a resource for millions of people on their insurance journey, and we have sold more than $120 billion in coverage.
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For more information:
Brooke Niemeyer
Associate Director of Media Relations
[email protected]
SOURCE Policygenius
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