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The use of Artificial intelligence (“AI”) by Australian businesses is becoming more commonplace. The insurance industry (brokers and insurers) is no different, but when it comes to how AI is used by insurance industry participants, Australian businesses remain cautious – particularly when it comes to claim decisions.
New research from Vero’s Annual SME Insurance Index 2026, a survey of 1,500 Australian businesses, shows businesses are generally comfortable with AI supporting administrative tasks such as quotes, product comparisons and customer enquiries. However, confidence drops significantly when AI is involved in assessing claims or deciding whether claims should be covered and to what extent. Many respondents prefer human judgment at critical moments.
The survey found that 72% of businesses are somewhat or very comfortable with AI comparing thousands of insurance products and tailoring coverage, and that 64% are somewhat or very comfortable using AI chatbots for policy, renewal and claims enquiries on a 24/7 basis. This suggests that businesses do see value in AI being used in the insurance industry when it enhances speed and convenience.
However, confidence drops when AI moves beyond support functions into making important decisions. Fewer than half of the respondents said they were comfortable with AI being used to make decisions on insurance claim outcomes with only 11% of people being ‘very comfortable.’
It is interesting and telling to note that claims satisfaction is highest amongst heavy broker users (95%) and lowest (54%) amongst non-users of insurance brokers. This underlines the role of advice and advocacy during complex or stressful events, irrespective of the underlying technology being used.
With more and more businesses using AI the message is clear. Whilst there is a level of comfort (and even expectation) within the broader business sector in knowing that their insurance broker is using AI, organisations (and the decision makers within those organisations) still want reassurance that their risks are understood and are being actively managed, and that when it comes to the crunch, there is an experienced and knowledgeable advocate in their corner acting in their best interests.
Interested in more information about how AI is influencing your organisation’s insurable risk profile, or in how it is impacting the insurance industry? Please don’t hesitate to GET IN TOUCH.
This communication is for general information purposes only and does not take into account any specific individual’s or business’s objectives, financial situation or needs. Before acting on any of the information provided herein, you should consider how it applies to your specific circumstances and contact an insurance broker and / or other appropriately qualified professional to discuss. Any advice given on what is or is not covered under any specific insurance policies is general only. You should always refer to the relevant PDS and policy wording to determine whether the coverage is appropriate for your individual circumstances.
Author: Fenna Goldfinch
References:
vero-sme-insurance-index-report-2026.pdf
