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The Impact of AI on Auto and Home Insurance: Insights from JD Power

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A recent study by JD Power reveals that nearly 29% of auto and home insurance customers are leveraging artificial intelligence (AI) tools for product research, policy management, understanding coverage, and obtaining quotes, highlighting AI's significant influence on policy choices and customer interaction with insurers.

This groundbreaking report, the JD Power U.S. AI Insurance Experience Study, emphasizes the transformative power of AI in the insurance sector. Tony Soloman, director of insurance intelligence at JD Power, likens the impact of AI on the industry to previous game-changers like the internet and mobile apps. Soloman notes the necessity for insurers to advance their digital offerings and remain vigilant about data usage by third-party AI platforms. As these technologies continue to evolve, insurance companies are encouraged to focus on delivering seamless, informative user experiences on their digital platforms.

AI's Current Role and Future Potential in Insurance

The study delves deeply into the early stages of AI adoption specifically tailored for the insurance industry. Eric McCready, director of digital solutions at JD Power, underlines that while these AI tools are still evolving, they are poised to become essential investments for insurers. The report shows that customers use AI for essential decision-making, making it crucial for insurance companies to refine their AI capabilities to shape future client interactions and retention strategies in the auto and home insurance sectors.

The JD Power study gathered feedback from 8,352 customer interactions across 24 insurance brands and eight third-party AI tools between June and July 2026. This comprehensive survey shines a light on the growing customer reliance on AI, not just through direct engagement with their insurers but also via third-party applications.

What Insurance Professionals Need to Know

  • AI tools are increasingly being used by customers for critical functions like obtaining quotes and understanding policy coverage.
  • Insurance companies are urged to enhance their digital platforms to ensure a seamless customer experience.
  • Future AI developments will likely require significant investment as these tools become integral to customer engagement strategies.
  • The study highlights a need for vigilance regarding data use by third-party AI applications, stressing the importance of data security.

JD Power's ongoing commitment to providing data-driven insights enhances customer experience and operational efficiency across industries. As AI continues to reshape the landscape of insurance, industry professionals should focus on strategic implementation and development to meet evolving demands.