While much of the insurance industry continues to race toward full automation, a new survey from Insurity reveals that only 15% of consumers actually want a digital-only insurance experience.
The 2025 Digital Experience Index reveals a more nuanced picture of what policyholders expect in a digital-first world. Despite the growing availability of self-service tools and AI-driven chatbots, nearly 50% prefer a hybrid approach: digital convenience with the safety net of human support.
Carriers, brokers, and MGAs investing heavily in tech-first platforms could see that figure as a strategic red flag. The survey also finds that 64% of consumers would consider switching insurers for a better digital experience, indicating that poor UX can be a churn trigger.
Automation alone won’t cut it
Communication preferences further highlight the complexity of today’s CX demands. While 47% of consumers still rely on phone calls to reach their insurer, 44% prefer email updates during the claims process, with others leaning into texts or in-app notifications. That range of preferences shows that personalisation is no longer a feature but a baseline expectation.
Sylvester Mathis, chief revenue and insurance officer at Insurity, said: “The push for digitisation often overlooks the nuanced needs of policyholders. Our findings highlight that while automation and self-service tools are invaluable, they should never come at the expense of human connection. Customers seek reliability and empathy, especially in 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.”
In practical terms, this means digital transformation strategies need more nuance. “Omnichannel” can’t just be a needs to be operationalised, which means knowing when to automate and when to hand things off to a human being.
While a sleek portal may be impressive, if it leaves customers stranded when issues get complex, it’s a liability, not a differentiator.