Though 45% of consumers say they feel comfortable with their insurance carriers using AI to provide alerts for severe weather risks,
The survey, conducted online in January 2025 with over 1,000 U.S. participants, gauged consumer sentiment towards P&C insurance carriers and AI adoption. Insurity found that just over a quarter, 26%, of consumers are more likely to trust AI weather predictions over traditional forecasts, and 20% prefer that their insurers use AI in prediction and mitigation of severe weather.
"Insurers have a unique opportunity to bridge the trust gap around AI by providing clear, tangible examples of how AI improves severe weather predictions and supports policyholders," said Sylvester Mathis, Insurity chief insurance officer and chief revenue officer: "For example, demonstrating how AI accurately predicts severe weather events to prevent property damage or showing how AI-driven alerts enable faster claims processing and proactive customer communication can help build trust."
Insurity highlights transparency as a critical factor for insurers using AI in its claims workflows, driven by the data that 64% say this is key for consumer trust. Only 28% say AI can improve claims efficiency after a severe weather event has taken place, and 38% feel confident after submitting claims when AI validation is used with satellite imagery or weather data. Nearly half, 44%, of consumers show concern over the reliability of AI-driven loss assessment, such as those conducted with drones or satellite imagery, compared to that of a human claims adjuster.
"Insurers should also educate customers about the safeguards in place to ensure AI predictions are reliable and explain how these tools are used to enhance, rather than replace, human expertise in decision-making," Mathis added.
Consumer trust in AI used in the P&C insurance industry is declining, compared to 2024 data. Overall support for insurer AI usage decreased by 9%, and positive experiences with AI tools dropped 16% in 2025. This decrease in sentiment is seen across generations, except for Gen Z individuals.
There are generational differences in trust towards AI, with Millennials the most trusting at 32% saying they feel comfortable interacting with AI in insurance overall. In trust of AI's ability to accurately predict severe weather property losses, 30% of Millennials, 26% of Baby Boomers, 25% of Gen X and 23% of Gen Z are comfortable with the idea. While Gen Z shows the least amount of trust in this regard, this generation is also the most likely at 16% to purchase an insurance policy using AI.
