A new survey highlights the rise in consumer acceptance when it comes to AI adoption in the property/casualty industry, as well as the ongoing frustration of rising insurance premiums.

Cloud-based insurance provider Insurity released its 2025 AI in Insurance Report, highlighting key consumer opinions on the use of artificial intelligence to monitor severe weather.

The report revealed that while 45 percent of consumers state feeling comfortable with their insurer using AI to monitor and provide real-time alerts about potential weather-related risks, 42 percent express concern about how the accuracy of those predictions could influence their premiums or coverage.

The findings highlight a significant challenge for insurers as they work to balance the introduction of AI-powered preventative services with transparent communication about their reliability and potential financial impact on policyholders.

Despite concerns, there are clear opportunities for insurers to build trust, the report found.

While 26 percent of consumers say they are more likely to trust AI-generated early warnings compared to traditional forecasts, only 20 percent consider it important that their insurer use AI to predict and mitigate severe weather risks.

To foster confidence, insurers must demonstrate the practical benefits of AI-based alerts and predictions while being transparent about their accuracy and limitations.

“Severe weather events are increasing in frequency and severity, and consumers are looking for faster, more proactive solutions from their insurers,” said Chris Lafond, chief executive officer at Insurity. “Consumers want the benefits of AI-driven weather insights, but they’re understandably cautious about how these predictions may affect their policies. For insurers, the year ahead presents an opportunity to build trust by prioritizing transparency and accuracy while demonstrating how AI can proactively protect customers without introducing unnecessary costs.”

This openness to use AI for severe weather management presents a critical opportunity for insurers to elevate the customer experience, the analysis showed.

Real-time alerts and proactive monitoring can strengthen customer relationships and potentially reduce claims costs by enabling early action.

The report cautions that given the high stakes involved in coverage decisions, insurers must ensure their AI-driven insights are not only accurate but also easy for policyholders to understand and trust.

“The 2025 AI in Insurance Report underscores that while AI adoption continues to grow, consumers need more education and transparency to fully trust these tools,” said Lafond. “As the insurance industry navigates this landscape, the insurers that address these concerns head-on will be better positioned to foster stronger policyholder relationships and remain competitive.”

The survey was conducted online in January 2025 with more than 1,000 randomly selected adult participants across the United States.