Out of any other generation, millennials are more likely to view AI as a positive development in P/C insurance, according to insights unveiled in Insurity’s 2024 AI in Insurance Report.

The provider of cloud software for insurance carriers, brokers and MGAs said its report underscores the contrasting perspectives of different generations toward AI technology and its impact on insurance.

Millennials — born between 1980 and 1994 — are the most enthusiastic proponents of AI in P/C insurance, with 33 percent responding that they would recommend their carrier to adopt AI, the data revealed.

Viewed as a transformative tool in the industry, millennials recognize AI’s potential to streamline processes and enhance customer experiences.

Their endorsement stems from the practical benefits AI offers, the report noted, including time-saving efficiencies and ease of use in their day-to-day lives. Automating routine tasks and providing instant support is a boon to busy millennials.

In contrast, Generation Z — born between 1995 and 2006 — approach AI with skepticism, with just 18 percent responding that they would recommend their carriers adopt AI.

While they understand the technology, they harbor reservations about its role in insurance, the report added.

Concerns such as privacy, transparency and the potential impact AI could have on the job market are top of mind for Generation Z.

Insurers need to address concerns or it could lead to a trust deficit, impacting Generation Z’s future brand loyalty and customer retention for insurers, the Insurity report said.

Baby boomers — born between 1946 and 1964 — tend to lack familiarity with AI and their responses are in line with Generation Z, with 16 percent saying they would recommend carriers adopt AI.

Insurers adopting AI and targeting this demographic should consider investing in education and communication to explain AI’s benefits and demystify its workings, the cloud software company recommended.

Many P/C insurers are embracing AI, actively integrating the technology into their operations to enhance policyholder experiences, the report noted.

Accelerated claims processing, personalized risk assessment, rapid fraud detection and AI chatbots are the most common case uses.

“As the insurance industry continues to invest in AI, understanding generational perspectives becomes crucial,” said Chris Lafond, chief executive officer at Insurity. “While millennials embrace AI for its efficiency and ease, other generations’ skepticism and lack of familiarity present unique challenges to insurance organizations who are making serious investments in AI technology. Insurers must bridge this gap by educating and communicating effectively the benefits of AI, as the future success of AI adoption hinges on addressing these diverse viewpoints.”