Most consumers reject fully automated insurance claims, even for cheaper premiums
Only 36% of UK adults would accept fully automated claims handling in exchange for lower insurance costs, according to research from KPMG. The finding undercuts the industry's push to embed artificial intelligence across claims processes.
The survey of 2,000 adults, conducted in March 2026, reveals deep consumer skepticism about AI decision-making in insurance. Ninety percent of respondents said human interaction remains important to claims handling.
Young people most willing to pay for human contact
The data contains a counterintuitive pattern: digital natives show the strongest preference for human involvement. Sixty-six percent of 18 to 24-year-olds said they would pay more to guarantee human involvement in claims, compared to 55% of those aged 24 to 44 and 31% of those over 65.
KPMG's head of insurance suggested younger customers may prioritize personal attention because they have less insurance-buying experience and want policies tailored to their specific needs.
Fairness concerns dominate consumer objections
Concerns about decision quality drive skepticism. Fifty-five percent of respondents worried about fair and accurate outcomes, while 65% raised ethical objections to AI making claims decisions.
Just 5% said they were "very confident" AI could deliver fair settlements. This contrasts sharply with broader consumer trust: a separate KPMG survey found 42% of the public trusts AI systems outside insurance and financial services.
Industry case for automation
KPMG's claims lead argued that automating parts of the process can cut costs and speed settlements. He cited young driver insurance as an example where technology has reduced premiums and simplified purchasing.
The tension is clear: insurers see efficiency gains and cost savings. Consumers see risk to fair treatment and want human oversight when claims are decided.
For more on how AI affects customer-facing roles, see AI for Customer Support.
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