Balancing Technology and Human Touch in Insurance
A recent report from Insurity highlights the complex relationship between technology adoption and customer satisfaction in the insurance industry. While many insurers are increasing their investments in automation and self-service tools, only 15% of consumers prefer a fully digital insurance experience. Instead, 48% of respondents favor a digital-first approach that includes the option to engage with a human representative when needed.
The 2025 Digital Experience Index from Insurity reveals that customers value flexible engagement strategies that balance efficiency with accessibility. Communication preferences remain diverse, with 47% of consumers primarily using the phone to reach their insurer, while 44% prefer email updates during the claims process. Other respondents indicated a preference for communication through text messages or app notifications.
The findings suggest that beyond digital adoption, consumer expectations center on having options for how and when they receive information. Generational preferences are shaping insurer strategies, with Millennials continuing to exhibit the highest comfort and trust in AI-driven insurance services. Gen Z is emerging as a significant market segment for AI-based solutions, indicating that future customer experience designs will need to account for younger, tech-savvy consumers.
The report found that 64% of consumers would consider switching insurers for an improved digital experience, highlighting the risk of customer attrition due to unsatisfactory tech experiences. Sylvester Mathis, chief revenue and insurance officer at Insurity, emphasized that customers seek reliability and empathy, particularly during critical moments like claims or policy adjustments. “Insurers that strike the right balance between cutting-edge technology and accessible human support will not only meet but exceed expectations, fostering deeper loyalty and solidifying their competitive edge,” Mathis said.
Transparency in AI processes is becoming increasingly important, with 64% of consumers identifying it as a key factor in building trust in AI-driven insurance functions. The report suggests that integrating human support into digital channels can strengthen connections with policyholders and build trust over time.
