February 9, 2026 By: Ankurjit Singh
For most customers, insurance is not something they think about every day. It becomes important only at specific moments, when buying a policy, renewing one, or during a claim. And it is in those moments that customer experience truly matters.
Over the years, insurers have invested heavily in digitization. Many journeys are now online, faster, and more efficient than before. Yet, efficiency does not always mean that the customer will have better experience. The customer still feels that the interaction is transactional, fragmented, or difficult to navigate.
Here comes Generative AI, which is slowly changing this balance. Not by replacing people or processes, but by helping insurers respond in a way that feels more natural, timely, and relevant.
Why Customer Experience Still Falls Short
Most insurers today offer digital channels, but many customers feel these channels stop at basic functionality. Industry studies consistently show that while customers can complete tasks digitally, far fewer feel genuinely supported or guided through those interactions.
At the same time, expectations are increasing. The customer is comparing their insurance experience not just with other insurance companies, but with banks, online retailers, and other digital experiences.
That gap between expectation and experience is where dissatisfaction often begins.
It is also why insurance leaders are increasingly looking at AI through a customer lens. Recent industry surveys show that a large majority of insurance CIOs are prioritizing AI investments specifically to improve customer experience, not just reduce costs or improve internal efficiency.
Where Gen AI Makes a Real Difference
One of the most visible changes is in customer support. Traditional chatbots may have difficulty with anything outside of pre-programmed questions. However, Gen AI models can comprehend the intent behind a query, deal with more complicated questions, and give responses that are easily understood.
For customers, this means fewer handoffs and less repetition. For service teams, it means better context and faster resolution when human support is required.
Personalization is another area where Gen AI is quietly raising the bar. Instead of sending the same messages to every customer, insurers can tailor their communication to the individual context. A first-time buyer needs very different guidance compared to a long-term policyholder filing a claim. When interactions reflect that difference, customers notice.
Claims, of course, remain the most critical touchpoint. This is where trust is either reinforced or lost. Gen AI can help by summarizing documents, extracting key details, and supporting faster, clearer communication. Shorter turnaround times matter, but clarity matters even more. Customers want to understand what is happening, not just wait for an outcome.
Customers Are More Ready Than We Think
There is often concern about whether customers are comfortable with Gen AI in insurance. Interestingly, recent consumer research suggests otherwise. A large percentage of customers say they are open to using AI-driven tools for activities like comparing policies or getting quotes, as long as it helps them make better decisions.
This tells us something important. Customers are not resistant to AI. They are resistant to poor experiences. When technology adds value, adoption follows naturally.
Empowering People Behind the Scenes
Customer experience is shaped just as much by employees as it is by technology. Gen AI can support service agents, underwriters, and claims teams by reducing manual work and surfacing relevant insights when they are needed.
When employees are less focused on searching for information and more focused on solving problems, interactions become more human by default. That impact flows directly to the customer.
The Application of Trust
The insurance industry relies heavily on trust; thus, proper use of GenAI must be responsibly executed from inception. For Gen AI to be integrated properly, data protection, transparency, and compliance with regulations must be a part of the process right from the beginning. The application of Gen AI in data analytics should be a process to support decisions rather than obscure them.
As consumers grow to understand how their data & decisions were generated and handled, their trust increases rather than declining.
Future Focus
Gen AI is more than a project; it is a constantly evolving capability, shaped by increasing customer expectations. Companies that approach the integration of Gen AI with clarity, responsibility, and an emphasis on business goals that align with increased trust in how they handle customers’ information will be leaders in the marketplace.
Gen AI is an opportunity to create a simplified and friendlier version of insurance. When Gen AI is properly deployed, it offers customers a greater sense of connectedness to the insurers; the technology acts as a medium for connecting the customer with the insurer rather than separating them.
