Artificial Intelligence in Insurance: Managing Emerging Risks and Transforming the Future of Risk Protection, A Study with Reference to Insurance Policyholders in Tamil Nadu, India
Affiliation
| DOI | https://doi.org/10.67313/stanzaleafbookchapter.2026.5 Registered |
| Published In | INSURING EMERGING RISKS ADDRESSING PANDEMICS CYBER ATTACKS AND POLITICAL ISSUES |
| Book Editors | Ramya A J. Deepak Kumar K.M. Anitha R. Srikala J. Chandhini |
| ISBN | 978-81-687720-2-1 |
| Pages | 41-46 |
| Publication Date | 17 July 2026 |
| Publisher | Stanzaleaf Publication |
Abstract
The insurance sector is being reshaped by Artificial Intelligence (AI) across underwriting, claims,
and customer service, generating efficiency gains alongside emerging risks around data privacy,
cybersecurity, and algorithmic transparency. This study examines customer awareness, perceived
risks, trust, and adoption intention toward AI-enabled insurance services using primary data from
300 policyholders in Tamil Nadu, India, collected through a structured five-point Likert
questionnaire administered via convenience sampling. Reliability was confirmed (Cronbach's α =
0.891). Percentage analysis, Chi-square tests, one-way ANOVA, and multiple regression were
applied. Findings show moderate AI awareness alongside high privacy and cybersecurity concern.
Age and education are significantly associated with adoption level, and adoption and trust differ
significantly across age and income groups respectively. Regression results indicate that Trust,
Awareness, Ease of Use, and Personalisation positively predict adoption, while Privacy Concerns
and Cybersecurity Risk negatively predict it, jointly explaining 59.9% of variance (R² = 0.599).
Recommendations for transparent, secure, trust-based AI strategies are offered for insurers and
regulators.
Keywords
Artificial Intelligence, Insurance, Emerging Risks, Customer Trust, Technology Adoption, Risk Protection