Digital transformation may be a top priority for insurers, but for 22% of consumers, it’s still not working. According to Insurity’s 2025 Digital Experience Index, 20% of U.S. policyholders deliberately avoided filing an insurance claim because the process was too frustrating or confusing.
Insurity, a cloud software provider for P&C carriers, surveyed over 1,000 adults nationwide and found that clunky, unintuitive digital tools are actively driving customers away. In fact, 64% of respondents said they would consider switching insurers if it meant getting a smoother digital experience, especially when it comes to claims.
Friction in the claims process doesn’t just slow things down, it erodes trust and triggers churn.
Insurers face mounting pressure
Claims are one of the most emotionally and financially significant touchpoints in the insurance journey. When those moments are marred by confusing interfaces, clumsy mobile apps, or endless data entry, customers simply disengage. In some cases, they walk away entirely.
The findings arrive as insurers face mounting pressure to modernise outdated systems and improve efficiency across the board. The report emphasises that technical upgrades alone aren’t enough. Without thoughtful, user-centric design, even the most advanced digital solutions risk alienating the very customers they’re meant to serve.
The survey, conducted in April 2025, included 19 experience-focused questions aimed at capturing the real-world frustrations and expectations of today’s insurance consumer. The data suggests that companies who continue treating claims portals like an afterthought are effectively inviting policyholders to look elsewhere.
For insurers looking to maintain loyalty and protect long-term value, the priority in 2025 is getting digital right.