1 in 5 Consumers Avoid Filing Claims Due to Frustrating Digital Experiences, Reveals Insurity’s 2025 Survey
New research from Insurity, a leading provider of cloud-based software for insurance carriers, brokers, and MGAs, highlights a growing concern in the insurance industry: poor digital experiences during the claims process are causing consumers to disengage. According to findings from Insurity’s 2025 Digital Experience Index, a national survey measuring consumer sentiment around digital interactions with property and casualty (P&C) insurers, 22% of consumers have avoided filing an insurance claim because the process was too frustrating or complicated. This alarming statistic underscores a critical gap in the claims experience that insurers must address to protect trust, loyalty, and long-term customer value.
The High Cost of Poor Digital Experiences
The survey also revealed that 64% of consumers would consider switching insurers for a more seamless digital experience, emphasizing how even minor frustrations during the claims process can drive customers to competitors. In an era where digital tools are becoming the primary channel for customer engagement, insurers face mounting pressure to modernize their systems and deliver user-centric solutions. However, as the findings show, technology investments alone are not enough. Without intuitive, efficient, and responsive interactions—especially during critical moments like claims—insurers risk losing customers and eroding brand loyalty.
“Poor claims experiences are not just process inefficiencies; they are key drivers of lost trust and reduced customer loyalty,” said Sylvester Mathis, Chief Insurance and Chief Revenue Officer at Insurity. “When someone avoids filing a claim despite having coverage, it signals a fundamental breakdown in trust. If policyholders feel friction, uncertainty, or inflexibility, they’re less likely to file a claim and far more likely to leave.”
Why the Claims Process Matters More Than Ever
As insurers continue to advance their digital strategies in 2025 and beyond, the claims process remains a pivotal touchpoint for customer satisfaction. A seamless, user-friendly claims experience is no longer optional—it’s essential for retention and long-term loyalty. The survey findings highlight that consumers expect digital interactions to be intuitive, efficient, and responsive, particularly during high-stakes moments like filing a claim.
While many carriers have made significant progress in digital transformation, Insurity’s research suggests that these efforts must go beyond backend system upgrades. Technology investments must prioritize user experience (UX) to ensure that digital tools are not only functional but also easy to navigate. Without this focus, insurers risk alienating customers and failing to deliver meaningful returns on their digital investments.
Key Insights from the 2025 Digital Experience Index
The 2025 Digital Experience Index provides actionable insights into consumer expectations and pain points. Conducted online in April 2025, the survey included responses from over 1,000 randomly selected adults across the United States, ensuring a representative sample. Participants answered a series of 19 questions, ranging from multiple-choice to scale-based formats, to gauge their opinions on digital interactions with insurers. Key findings include:
- 22% of consumers have avoided filing a claim due to frustration or complexity: This highlights a significant barrier to engagement and underscores the need for simplified, intuitive claims processes.
- 64% of consumers would switch insurers for better digital experiences: Loyalty is increasingly tied to the quality of digital interactions, making user experience a competitive differentiator.
- Trust is at risk when claims processes fail: Consumers who avoid filing claims due to poor experiences may perceive their insurer as unresponsive or unreliable, jeopardizing long-term relationships.
A Call to Action for Insurers
The survey findings serve as a wake-up call for insurers to prioritize frictionless digital experiences in 2025 and beyond. As digital tools become the cornerstone of customer engagement, insurers must focus on creating seamless, user-centric solutions that meet evolving consumer expectations. This includes:
- Streamlining Claims Processes: Simplify workflows and eliminate unnecessary steps to reduce frustration and improve efficiency.
- Leveraging AI and Automation: Use artificial intelligence and automation to enhance responsiveness and provide real-time support during the claims process.
- Investing in User Experience (UX): Ensure that digital platforms are intuitive, accessible, and designed with the end-user in mind.
- Enhancing Communication: Provide clear, timely updates throughout the claims process to build trust and transparency.
By addressing these areas, insurers can not only retain existing customers but also attract new ones by differentiating themselves through superior digital experiences.
Modernizing for the Future
The pressure to modernize core systems and enhance operational performance has never been greater. Insurers are tasked with delivering greater value to policyholders while navigating an increasingly competitive landscape. However, as Insurity’s survey reveals, technology investments must align with customer needs and expectations to drive meaningful outcomes.
“As carriers evaluate their core systems and digital infrastructure this year, the priority must be reducing friction where it matters most,” said Sylvester Mathis. “A clunky or disconnected claims process frustrates customers and risks sending them elsewhere. Insurers must focus on creating seamless, empathetic experiences that meet consumers where they are.”
