Most Americans would rather put up with these annoyances than choose an insurance plan

Has the insurance registration process become too painful? A number of Americans would rather deal with endless traffic than sit down and choose insurance options.

The survey of 2,000 American adults found that 58% would rather experience a number of life’s annoyances if it meant never having to stress about understanding insurance policies or enrollment processes again.

In addition to enduring endless traffic (13%), people said they would like to live with their parents again (22%), go to a concert by an artist they don’t like (22%) and even listen to a song repeated. for a whole year (14%).

Commissioned by UserTesting and conducted by Talker Research, the study aimed to understand the frictions people experience as insurance enrollment undergoes a digital revolution.

Although 65% of respondents said they felt confident in their understanding of what they are insured for, 36% of consumers are turning to artificial intelligence (AI) as a tool to help them understand complex insurance information.

Most consumers said they prefer to get their insurance advice from human advisors, as opposed to AI (86%, compared to 14%).

However, many people still believe that AI can help them in some way: either by comparing insurance plans (33%) or by simplifying the coverage terms that often overwhelm the average consumer (25%).

As opposed to getting advice from human advisors, one in three respondents said they felt more comfortable sharing their personal information with AI rather than humans – claiming they felt AI would better protect their privacy (43%) and would not judge them (35%).

Despite the appeal, some skepticism remains. Over a third (38%) of respondents said they feel less comfortable sharing personal information with AI, stating that they do not trust AI as a whole (56%) and citing fears that their data will be shared without permission. consent (44%) .

Other concerns include the lack of a personal connection (40%) and doubts about the accuracy of AI-generated recommendations (36%).

Even with their concerns, 38% said they would be “open to using AI” for insurance advice in the future.

“Consumers are increasingly embracing AI to demystify insurance policies,” said Bee Nookala, Senior Marketing Manager, Insurance Solutions at UserTesting. “Many trust AI to provide more privacy and unbiased advice than a human agent. It’s clear that AI is poised to play a crucial role in transforming the future of insurance, but it’s just as important that companies balance this with the human touch that customers still want.”

The study also revealed varying levels of insurance knowledge among respondents.

People felt most informed about health insurance (78%) and auto insurance (75%), followed by dental insurance (65%), home insurance (61%) and pet insurance (39%).

When explaining which factors were most important to them when choosing insurance, respondents said that cost of coverage (69%) was the top priority, beating out potential coverage (61%), customer service (36%) and convenience of understanding (34%).

Many still face significant challenges when dealing with their insurance providers, including lack of clarity on coverage details (27%), unnoticed premium increases (24%), complicated claims processes (20%), service weak towards the customer (19%) and difficulties. browsing online platforms (14%).

“In today’s economy, the cost of coverage is the top priority for consumers, but it’s clear that customer service and ease of understanding are the areas where insurers can make the biggest impact,” Bee continued. “Simplifying the process and providing better digital experiences can be the key to gaining consumer trust.”

Survey methodology:

Talker Research surveyed 2,000 Americans of the general population; The survey was commissioned by UserTesting and administered and conducted online by Talker Research between August 29 and September 3, 2024.