A Digital Insurance survey including insurance carrier staff and tech firms found that 78% of respondents are planning to increase technology spending budgets this year. Further, 36% reported artificial intelligence (AI) as their largest tech innovation priority, with customer service as the second largest area where respondents see automation providing the most value. An increasing number of insurers are incorporating AI to enhance their digital experiences, and life insurers are beginning to follow suit—with Principal being the latest.
Insurance professionals report consumer demands for a better overall customer experience is the number one factor influencing their tech and digital strategy for 2025.
– Digital Insurance
Principal’s New AI-Generated Search Results
Principal added an AI-Generated Answer feature to its public site Search function, making the firm the first in our coverage group to implement AI within the customer-facing digital experience. As outlined in our June 16th Life Insurance Monitor Update (Life Insurance Monitor subscription required), the new feature delivers the AI-generated response in a dedicated tile at the top of the search result page. Users can like or dislike the response as well as toggle the feature on or off for future searches. The bottom of the tile displays links to related articles as well as a disclaimer about the accuracy of the AI output that users can click to view the sources that informed the response.
While the AI-Generated Answer feature provides visually appealing, accurate and detailed outputs, it is currently only equipped to handle lower-level inquiries such as basic definitions, product information and policy self-servicing. The tool does not provide contextual guidance or recommendations—higher-value queries that can substantially differentiate the user experience.
The Industry’s Latest AI-Assistance Tools
To assist in helping life insurance firms incorporate AI into their business processes, industry organizations are launching tools and resources—two of which we discuss in our June 2nd Update:
- LIMRA’s AI Governance Group (AIGG) launched a new suite of resources, Turnkey Templates & Strategic Guides, that helps U.S. life insurers make informed decisions regarding AI adoption. Drawing expertise from over 100 business and technology executives, the resources offer a turnkey solution for small to midsize firms and are customizable for specific organizational needs. The AIGG encourages insurers to contribute improved frameworks back to the industry as well.
- Data and solutions firm SAS launched a free online tool enabling insurers to determine whether their AI plan is clear and coherent. The “maturity assessment” tool begins with a ten-part questionnaire to determine where insurers are on their AI governance journey, then generates a custom report and offers personalized recommendations to the insurer.
Check out CI’s Insights section for more on the latest digital trends and analysis across the financial services and healthcare world. And for more on life insurance, learn about our subscription competitive research services for life insurance.
Brooke Harmke
Brooke Harmke is an Analyst on CI's insurance team.