A new JD Power study reveals that artificial intelligence is rapidly transforming how consumers interact with auto and home insurance—moving beyond novelty to meaningful influence in real purchasing and coverage decisions. The 2026 AI Insurance Experience Study, based on 8,352 customer evaluations across 24 insurers and eight third-party AI tools, found that 29% of auto and home insurance customers now use AI tools to research coverage, service accounts, clarify policy details before filing claims, or shop for quotes and new policies.
“This is no longer speculative—it’s operational,” said Tony Soloman, Director of Insurance Intelligence at JD Power. “Just as we’ve seen with the internet and mobile apps, AI is rapidly becoming a critical conduit to key policy shopping, research and account management decisions among auto and home insurance customers.”
The impact is tangible: Among those who used AI to research products or coverage options, 37% changed their existing policy based on AI-provided guidance. For customers actively shopping for new policies via AI, the conversion rate was even higher—42% purchased a policy as a direct result. Consumers access these tools both through insurer-branded platforms (e.g., Liberty Mutual’s May 2026 launch of a conversational AI auto quoting app) and third-party solutions like Insurify’s ChatGPT-integrated comparison tool, launched in February.
Yet adoption remains uneven. While younger demographics show greater trust and engagement, most customers still aren’t using AI—citing unfamiliarity, habitual reliance on traditional channels, and skepticism about accuracy and transparency. “It’s still relatively early in the evolution of insurance-specific AI tools developed by insurers,” noted Eric McCready, JD Power’s Director of Digital Solutions, “but these tools are on their way to becoming some of the most important investments insurers will make during the next several years.”
Soloman underscored a dual imperative: Insurers must ensure their own AI interfaces deliver comprehensive, intuitive, and trustworthy experiences—and simultaneously monitor how third-party LLMs ingest and interpret their data, since many shoppers now rely on external chatbots for comparisons and advice. As AI shifts from convenience to catalyst, insurers that prioritize clarity, control, and consumer confidence will lead the next wave of digital transformation.
Source: https://www.jdpower.com/business/press-releases/2026-ai-insurance-experience-study
Source: https://www.insurancejournal.com/news/national/2026/08/28/883247.htm
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