Insurance company leaders see the tension between AI speeding up service and making decisions more consistent, but also leaving customers feeling like they’re chatting to a brick wall. So, is it making insurance more or less human?
AI makes insurance feel more human by reducing hassle and helping people understand what’s happening during stressful times. It feels less human when it hides the decision-making process, increases bias, or replaces real empathy with empty automation.
Let’s explore how to spot the difference and intentionally create a more human experience.
A bad day is usually the moment of truth in insurance
No one calls their insurer when everything is going great. Claims, billing issues, and coverage questions after an accident can be stressful.
AI can help by speeding up tasks that should be quick.
- Routing a claim to the right team
- Summarizing a long claim history so a rep doesn’t ask the customer to repeat themselves
- Proactively flagging missing documents with plain-language instructions.
McKinsey points out that Aviva uses AI in motor claims to cut the time for complex liability assessments by 23 days, improve claim routing accuracy by 30%, reduce customer complaints by 65%, and save costs. This process isn’t about AI replacing humans.
It’s about AI clearing the way so people can focus on the parts that truly need judgment and care.
Where AI feels human in speed, clarity, and consistency
Here’s what customers see as “human,” even when AI is involved:
Faster help without losing context
When a customer starts a chat and then needs to speak with a live representative, the handoff should be smooth and seamless, without requiring them to repeat their story or policy number.
Clear explanations with decisions
People accept decisions they don’t like if they understand them, but when decisions feel like a black box, they lose trust in the decision. That’s why trustworthy AI frameworks focus on transparency plus explainability, not just accuracy.
Harmony across channels
If underwriting says one thing, billing another, and service something different, customers think the company is disorganized. When applied responsibly, AI can help standardize information and reduce these contradictions.
AI feels less human when it’s a case of ‘computer says no’
AI feels less human in a few common ways.
Opaque decision-making that customers can’t challenge
If AI affects eligibility, pricing, claims triage, or fraud scoring, customers deserve clear answers about what’s happening and the appeal process. Regulators are watching this aspect closely.
The NAIC’s model bulletin flags risks, such as a lack of transparency/ explainability, and encourages insurers to minimize consumer harm.
Bias that grows faster than your compliance team can handle
Historical data often includes past inequalities. Automating decisions without safeguards can spread discrimination.
Deloitte explicitly calls out the risk of bias and discriminatory outcomes if gen AI and related systems aren’t thoroughly monitored and governed.
Poor automation that traps customers
We’ve all experienced a chatbot that won’t answer your real question or connect you to a person. That doesn’t feel efficient, but disrespectful.
A practical ‘Human-First AI’ playbook for insurance leaders
If you want AI to make your organization feel more human, focus on these steps.
Design for the moments that count
Identify the top 10 “anxiety moments” like filing a claim, receiving a denial, bill spikes, prior authorization confusion, or policy cancellation. Then ask yourself where a human is needed and where speed matters most.
Make it easy, fast, and normal to reach a human
Don’t hide the phone number. “Talk to a specialist” should be easy to see and quickly connect clients with a specialist to discuss their issue.
Treat explainability like a customer experience feature
If a model influences an outcome, provide a plain-language explanation and a clear dispute or appeal process. Honesty and explainability are key parts of trustworthy AI.
Put governance on track before you scale.
Take a consistent approach to risk by testing, monitoring, documenting, and holding teams accountable. The NAIC bulletin focuses on consumer risks like inaccuracy, unfair discrimination, data vulnerability, and lack of transparency, so governance can’t be a slide deck.
It has to be operational.
Measure’ human outcomes,’ not just savings.
Yes, track the impact on expense ratios. But also watch for:
- Complaint rate and complaint themes
- Appeal rate and overturn rate
- Time-to-resolution
- Customer sentiment after claim decisions
- Digital to human service handoff success.
Aviva’s drop in complaints is a good example of AI meeting a significant “human outcome” metric.
So, is it more human or less?
AI doesn’t automatically make insurance more human or worse, either. AI is a multiplier.
- If your processes already respect customers, AI can make that respect faster and more consistent.
- If your processes already frustrate customers, AI can make that frustration instant and unavoidable.
AI accentuates existing structural aspects, making them better or worse. Keep humans available for empathy, judgment, and exceptions because insurance is, at its core, a promise to people on their worst days.
Welcome to the future of insurance that runs at the speed of now. Agility Holdings Group (AHG) invests in innovative InsurTech, HealthTech, and related companies that aim to revolutionize access to insurance products, establish patient care, and improve health outcomes.
Please visit our LinkedIn page for more information about AHG.