UK customers are warming up to their insurers, even as geopolitical chaos, economic stress, and cost-of-living woes continue to take a toll on household budgets.
Guidewire’s newly released 2025 European Insurance Consumer Survey found a 7% year-on-year increase in the number of UK customers who feel understood by their insurers and believe the services and products on offer actually hold value. In fact, 30% say they now hold a positive opinion of insurers—an 11-point jump from last year.
What’s behind this unexpected uptick in sentiment?
According to Guidewire, the insurance industry is benefiting from a “keep calm and carry on” effect. In uncertain times, customers appear to crave the stability that insurance, if done right, can provide. But while sentiment is improving, the pressure is still on. Seventy-nine percent of customers who say they’re likely to switch insurers in the next year cite concerns about the cost of living.
That should set off alarms in boardrooms. As the market loosens and price sensitivity climbs, insurers must ditch reactive playbooks in favour of sharper, proactive strategies.
The majority of respondents (70%) say they want insurers to step in before problems hit by providing alerts, advice, and damage prevention services and not just financial reimbursement after a crisis.
While traditional contact methods like phone calls remain dominant (56%), they’re slipping. App-based communication is gaining ground, with 26% of customers now open to using insurance-specific mobile apps, a clear signal for digital CX teams to step up.
Almost half (45%) of UK customers now say they’re comfortable getting insurance from product manufacturers like Tesla or Amazon, up 5% from 2024. That spells opportunity for traditional providers.
It’s not just customers giving insurers a second look. The survey also reveals a growing perception of insurance as a dynamic, inclusive industry. Thirty-five percent of respondents now describe it as “exciting” (up 11%), and among 25–34-year-olds, that number jumps to 72%. Fifty-seven percent also say insurance feels like a diverse sector, up 8% from last year.