Recent volatility in insurance, wealth management and price comparison stocks has
highlighted investor uncertainty about the role artificial intelligence may play in financial
services distribution.
However, new consumer research from Consumer Intelligence, conducted this week, suggests the picture is more nuanced than the market reaction implies. The data points to AI as a tool that helps consumers complete purchase decisions, not one that removes the need for comparison or advice.
Two-thirds of respondents (67%) have purchased, renewed, switched or considered switching a product or service in the past week. Of those, 14% used AI tools to support their decision-making.
The results are striking. Among AI users, 69% say the assistance made them more likely to complete their decision. A further 28% say it helped even if it did not change the outcome. Just 3% found it unhelpful. This suggests AI is functioning as a conversion tool, making consumers more confident in acting, not less likely to engage with existing channels.
More than one in four consumers (28%) now use ChatGPT or similar AI tools to help navigate or search the internet, with usage significantly higher among younger age groups. Of those AI users, 30% say they use the technology to help shop for insurance. This equates to approximately 8% of the overall population already incorporating AI into their insurance decision-making.
Trust levels among these users are high. More than four in five say AI helps them make better purchase decisions, simplifies the shopping process and provides useful recommendations. However, confidence falls when it comes to the accuracy of AI-generated information, dropping below 75%.
This gap between trust in convenience and trust in accuracy is significant. It suggests a clear and continuing role for established comparison platforms and insurers. Consumers value what AI does well, simplifying complexity and surfacing options, but they still look to trusted brands when it comes to the detail of what they are actually buying.
Comparison behaviour remains intact
Search engines continue to dominate insurance journeys, with 87% of consumers using them to navigate online and 59% using them specifically for insurance shopping. Most consumers (77%) prefer to select links themselves from search results rather than relying on AI-generated recommendations or sponsored content. Trust in AI-generated search features and sponsored results remains low, with fewer than 40% expressing confidence.
This suggests that while AI is changing how consumers prepare for insurance decisions, the core comparison behaviour remains strong. Consumers still want to choose for themselves. The platforms that help them do so with greater clarity and personalisation are well positioned to benefit from this shift, not be displaced by it.
From experimentation to embedded distribution
Recent industry developments underline how quickly AI is moving from experimentation to embedded distribution. OpenAI has now approved insurer-built applications that allow users to obtain insurance quotes directly within ChatGPT, signalling that conversational AI is beginning to sit within the insurance purchase journey itself.
The question for insurers and comparison platforms is not whether AI will play a role in insurance distribution. It already does. The question is whether they shape that role or let others define it for them.
Ian Hughes, CEO of Consumer Intelligence, said:
“The market reaction this week has been dramatic, but our data tells a more encouraging story. AI makes consumers more likely to complete a purchase decision, not less. That is good news for insurers and for comparison platforms.
“Price comparison sites were built to help consumers navigate complexity. That need has not gone away. What is changing is that consumers now expect a more personalised experience, one that helps them understand what they are getting, not just what they are paying.
“The platforms and insurers that use AI to surface meaningful differences in cover, and help consumers understand trade-offs, will strengthen their position. There is also a significant retention opportunity here. If AI helps consumers feel more confident completing decisions, it can be as powerful a tool for renewals as it is for new business.
“AI is a tool for enhancing the comparison model, not replacing it.”
The findings suggest that AI adoption in insurance shopping is meaningful but still early. 8% of the population is a real number, but it is not dominant. There is time for the industry to act. The insurance distribution model is evolving, not disappearing, and the businesses that lean into this shift stand to gain the most.
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