At recent industry conferences, AI was one of the most talked-about topics among leaders and decision-makers. Some were enthusiastic about its potential, while others were still skeptical of its real-world usefulness. One common thread emerged: nearly everyone agreed that AI agents are going to play a role in the future of the insurance industry in some capacity.
Since AI agents are becoming more commonplace in the insurance industry, we wanted to know if they’re helping live agents become better at what they do. To answer this, it helps to consider when human interaction creates the most value, when AI brings unique advantages, and if a hybrid approach will deliver the strongest results.
When Live Agents Make the Most Sense
Despite the growing role of AI, live agents remain central to the insurance process. Insurance is a complex and often emotional purchase. For many customers, trust and personal reassurance cannot be replicated by technology alone.
Complex policies and unique scenarios
Live agents excel when policies involve multiple coverages, unusual risk factors, or complicated terms.
Building trust and long-term relationships
Insurance buyers often want confidence that their policy truly meets their needs. A live agent’s ability to listen, answer detailed questions, and establish rapport is crucial in these moments.
Opportunities to upsell and cross-sell
Live agents can pick up on subtle cues that AI may not detect, such as a customer hinting at future plans to purchase a home or add a new driver. These insights create opportunities for tailored recommendations that expand the relationship.
Empathy and emotional intelligence
Claims and coverage conversations can be sensitive. Human agents are uniquely positioned to navigate the emotional aspects of these discussions, providing empathy and reassurance that AI cannot match.
In short, live agents are most valuable when human understanding and relationship-building are required.
When AI Agents Make the Most Sense
While live agents bring a human touch, AI agents have their own set of strengths that can improve efficiency and enhance the customer experience.
Handling routine inquiries
AI agents can quickly and accurately respond to common questions, such as policy details, payment schedules, or quote requests. This reduces wait times for customers and saves human agents for more complex cases.
24/7 accessibility
Unlike live agents, AI never clocks out. Around-the-clock availability means that customers can receive immediate assistance or begin a process outside of business hours.
Data processing and speed
AI systems can verify information, pull up records, and match customer data to appropriate products in seconds. This allows for faster interactions and helps reduce manual errors.
Scalability and cost-effectiveness
AI is particularly effective in high-volume situations, such as responding to inbound quote requests during peak marketing campaigns. By handling repetitive tasks, AI lowers the workload for live agents and reduces operating costs.
These advantages make AI an asset in situations where speed, consistency, and scalability are priorities.
Why a Hybrid Approach Is Usually Best
Industry leaders may disagree on the degree to which AI should be integrated, but most recognize that a combination of human and AI capabilities is where the industry is headed.
AI as the “first line” of interaction
Many insurers are already using AI to qualify leads, handle FAQs, and gather essential information before passing customers to live agents. This ensures that when a human agent takes over, they already have context and can focus on the higher-value part of the conversation.
Supporting, not replacing, live agents
AI is increasingly viewed as a tool that makes live agents more effective. By removing repetitive tasks and providing quick access to customer data, AI allows agents to dedicate more time to personalized advice and relationship-building.
Meeting customer preferences
Not every customer wants the same experience. Some prefer the convenience of AI for quick questions, while others want a live conversation from start to finish. Offering both options ensures that customers can choose the path that suits them best.
Consensus from industry discussions
Some leaders were strongly supportive of AI adoption, while others remained cautious. However, the consensus was clear: AI is not a passing trend. It will play a growing role in the industry, and the most effective organizations will be those that balance technology with human expertise.
The hybrid approach is not just about efficiency; it’s about aligning with customer expectations and building stronger, more adaptive insurance operations.
What This Means for the Insurance Industry
For insurance buyers, the integration of AI into customer interactions means a shift in how calls and inquiries are handled. The benefits are tangible:
- Better qualified interactions: Customers routed from AI to live agents often arrive with clearer needs and stronger intent, making the conversation more productive.
- Greater efficiency: Live agents can spend more time on high-value interactions instead of being bogged down by repetitive tasks.
- Improved customer experience: Offering both AI and live agent support demonstrates adaptability and ensures that every customer gets the type of interaction they prefer.
Ultimately, the industry is moving toward a model where technology and human expertise work in tandem.
Conclusion
AI agents are not replacing live agents in insurance, but they allow them to focus on the more valuable customer touchpoints, making them more effective.
Live agents remain indispensable for complex, emotional, and relationship-driven interactions, while AI brings speed, scalability, and efficiency. Together, they create a more effective, customer-centric model.
