Half of insurance customers will drop coverage because of this one flaw
One surprising reason why customers would leave their insurer
- A new poll by J.D. Power found that 52 percent of auto and home insurance customers would leave their provider due to a poor or merely adequate digital claims experience.
- The 2025 US Claims Digital Experience Study found that robust digital offerings and clear communication are crucial for improving customer retention.
- Customer satisfaction scores are highest when policyholders can manage the entire claims process, from initial notification to status updates, through their insurer's digital apps and websites.
- Despite the importance of digital updates, only 22 percent of home and auto insurers consistently provide adequate digital information, causing customers to feel disconnected and seek answers via multiple channels.
- Insurers have a significant opportunity to boost customer retention by developing a proactive, end-to-end digital experience, as customers with an 'excellent' or 'perfect' digital experience have only a 4 percent chance of switching.