| ABSTRACT |
Artificial Intelligence (AI) is fundamentally reshaping the vehicle insurance industry, promising a paradigm shift through accelerated claims processing, hyper-personalized policy pricing, and sophisticated fraud detection mechanisms. While extant literature has predominantly focused on the perceived risks and barriers to AI adoption, a significant gap exists in understanding the role of perceived benefits from a consumer-centric, positive psychology perspective, particularly within unique socio-cultural and regional contexts. This study addresses this gap by investigating how the perceived benefits of AI-driven insurance solutions foster consumer trust and subsequently enhance the willingness to adopt these technologies among vehicle owners in Jammu and Kashmir (J&K), India. Adopting a quantitative research design, data was collected via a structured questionnaire from 380 vehicle insurance policyholders across the diverse regions of Jammu, Kashmir, and Ladakh. The survey instrument measured constructs of Perceived Benefits (categorized into Functional, Economic, and Emotional benefits), Trust in AI (encompassing competence, integrity, and benevolence), and Willingness to Adopt. Data analysis employing Structural Equation Modeling (SEM) revealed that Perceived Benefits exert a strong, significant positive influence on Trust (? = 0.72, p < 0.001). Trust, in turn, was found to be a powerful and direct predictor of Willingness to Adopt (? = 0.68, p < 0.001). Further, Trust fully mediated the relationship between Perceived Benefits and Willingness to Adopt. Among the benefit dimensions, Functional Benefits (speed, accuracy) and Emotional Benefits (peace of mind, reduced hassle) were particularly salient in the J&K context. The findings underscore that in a region characterized by its distinct challenges and consumer psyche, trust acts as the critical psychological conduit through which the recognized advantages of AI translate into adoption intention. The study concludes that for insurance providers operating in J&K, a communication and system design strategy that proactively highlights and delivers tangible and intangible benefits is paramount. By moving beyond a risk-centric narrative to a benefit-oriented one, insurers can cultivate the trust necessary to foster a positive and receptive attitude toward AI-driven transformation in the vehicle insurance sector. |
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