Frustrating Claims Processes Driving Policyholders Away
A recent survey by Insurity, a provider of cloud-based software for insurance carriers, has revealed that a significant number of policyholders are considering switching insurers due to frustrating digital experiences. The 2025 Digital Experience Index, a national survey examining consumer perceptions of digital interactions with property and casualty insurers, found that 22% of respondents had chosen not to file an insurance claim because of what they described as a frustrating or overly complex process.
The survey’s findings point to a potential disconnect in the claims experience that may be affecting customer engagement and satisfaction. According to the data, 64% of participants said they would consider switching insurers for a more streamlined digital experience. This suggests that difficulties during digital interactions, particularly in the claims process, can significantly influence policyholder decisions and increase the likelihood of them switching providers.
As digital platforms become a primary channel for customer service and support, the report underscores the critical role of claims processes in shaping consumer perceptions. While many insurers have invested heavily in digital transformation, the findings indicate that technology alone may not be sufficient to retain customers. The customer experience, especially at key points such as claims, remains a crucial factor in policyholder retention.
“As carriers evaluate their core systems and digital infrastructure this year, the priority must be reducing friction where it matters most,” said Sylvester Mathis, chief insurance and chief revenue officer at Insurity. “A clunky or disconnected claims process frustrates customers and risks sending them elsewhere. When someone avoids filing a claim, despite having coverage, it signals a fundamental breakdown in trust.”
The survey was conducted online in April 2025 and included responses from more than 1,000 adults across the U.S. The questionnaire consisted of 19 items, ranging from multiple-choice to scaled responses, designed to capture views on various aspects of digital engagement. The data was then analyzed to identify recurring themes and trends.
The findings highlight the need for insurers to focus on improving the customer experience, particularly in the claims process, to retain policyholders and remain competitive in a rapidly evolving digital landscape.
