Most Australians Open To AI-Assisted Purchases But Want To Keep Final Say On Protection Decisions

Nearly three quarters of Australian consumers are open to AI playing a role in their purchasing decisions, but only 3 per cent want AI to handle protection purchases automatically without human approval, according to new research from embedded insurance infrastructure provider, Cover Genius.

The findings come from Cover Genius’s Embedded Protection Consumer Survey, a study of 1,392 consumers across seven countries conducted in partnership with independent research firm, Gather. The Australian data draws on a sample of 225 respondents, benchmarked against 482 in the United States and 155 in the United Kingdom. The survey was fielded between 30 March and 17 April 2026.

The research paints a picture of Australian consumers who are receptive to embedded protection products and willing to switch platforms to get them, but who remain cautious about newer purchasing channels including AI tools and marketplace apps.

AI as a co-pilot, not a decision-maker

While 73 per cent of Australian respondents indicated openness to AI-assisted buying, broadly in line with the US (76 per cent) and UK (74 per cent), the data reveals clear limits on how far consumers want AI involvement to go.

The most popular approach among Australians was for AI to suggest protection options and leave the final decision to the consumer, selected by 39 per cent of respondents. Just 3 per cent wanted AI to handle protection automatically without asking, while 16 per cent were comfortable with AI adding protection automatically but wanted the ability to remove it.

More than a quarter of Australians (26 per cent) said they would not let AI make purchases on their behalf at all, and one in five (20 per cent) said they would not share personal details with any AI.

When asked who they would feel most comfortable buying embedded protection from, banks and credit card providers led at 39 per cent, followed by the platform being booked through (24 per cent) and dedicated insurance brands (24 per cent). AI assistants ranked last at 4 per cent.

CEO and Co-Founder of Cover Genius, Angus McDonald, noted the gap between consumer interest and current purchasing behaviour.

“Australian consumers are highly risk-conscious, but their buying habits are still catching up to modern channels,” Mr McDonald stated.

“While uptake in marketplace apps and AI tools is still in its early stages in Australia compared to markets like the US, the appetite for embedded coverage is undeniable.”

Embedded protection drives platform switching

The research found that 87 per cent of Australians weigh potential risks when booking travel or making major purchases, consistent with rates in the US (86 per cent) and UK (86 per cent).

That risk awareness translates into demand for protection built directly into platforms. Three quarters (75 per cent) of Australian respondents indicated they would switch to a travel booking platform that automatically included protection with their purchase, comparable to the US (76 per cent) and higher than the UK (68 per cent).

Automatic payouts also influence purchasing decisions. Some 76 per cent of Australians indicated they would be more likely to buy protection if it paid out automatically without requiring a claim to be filed.

McDonald described automation and native integration as growth drivers for the embedded protection category.

“When cover is integrated at checkout and claims are resolved quickly, protection stops being a reluctant add-on. It becomes a standout benefit, and a primary reason customers stay loyal to your platform,” he added.

Marketplace app uptake lags behind other markets

Despite broad interest in embedded protection, Australians are purchasing through newer channels at lower rates than consumers in the US and UK.

Only 8 per cent of Australian respondents had bought protection through a marketplace app, compared to 21 per cent in the US and 12 per cent in the UK. Standalone insurers remain the leading channel for Australians at 41 per cent, followed by checkout on a travel website at 47 per cent.

At checkout on eCommerce sites, 18 per cent of Australians had purchased protection, below the US at 25 per cent but ahead of the UK at 14 per cent.

Card benefits widely misunderstood

The survey identified a gap in how Australians understand and use the protection benefits already attached to their bank and credit cards.

Only 30 per cent of respondents had successfully used a card protection feature. More than a quarter (27 per cent) did not know what their primary card covers at all, while 46 per cent were unaware of, did not trust, or failed to consider their card’s included benefits.

When asked what would make bank-purchased protection more appealing, Australians prioritised a clear explanation of what is covered (54 per cent) ahead of a seamless banking app experience (48 per cent) and competitive pricing (44 per cent).

The finding suggests that transparency around existing coverage matters more to Australian consumers than price when it comes to protection offered through banks.

Emergency medical cover tops the list

Among specific protection products, emergency medical coverage while travelling was rated as the most relevant by Australian respondents, with 80 per cent rating it highly. That figure sits above the UK (77 per cent) and well ahead of the US (66 per cent).

Cyber and identity theft protection followed at 72 per cent, with trip cancellation and interruption at 70 per cent and device theft or damage also at 70 per cent. Shipping protection for lost, damaged or stolen items rounded out the top five at 68 per cent.

The research notes that as the Australian sample is modest at 225 respondents, the figures should be read as directional rather than definitive. Respondents were required to have engaged in at least one qualifying financial or travel activity in the prior 12 months and to have previously been offered a protection or insurance product.

Last Updated on August 26, 2026 by Nick Ross