Over a fifth of consumers refrain from submitting claims due to challenging digital processes, as indicated by Insurity's recent survey findings.
New study from Insurity sheds light on why consumers are abandoning claims processes in 2025
HARTFORD, Conn.-(BUSINESS WIRE)-Insurity, a leading provider of cloud-based software solutions for insurance companies, has unveiled findings from its 2025 Digital Experience Index, a nationwide survey investigating consumer sentiments towards digital interactions with property and casualty (P&C) insurers. The survey reveals that a staggering 22% of consumers have avoided filing a claim due to the process being excessively frustrating or complicated, signaling a pressing concern for insurers to address in 2025 to preserve trust, loyalty, and long-term value.
Not only does this research highlight a gap in the claims experience, but it shows that 64% of consumers would be willing to jump ship to a company offering a more seamless digital experience. As insurers continue to evolve their digital strategies, prioritizing user-friendly, customer-centric digital interactions will boost retention and forge strong bonds of customer loyalty.
As digital tools become the primary avenue for customer interaction, the survey illuminates how poor claims experiences aren't just process inefficiencies, but major drivers of distrust and waning customer loyalty. Given the growing pressure on insurers to modernize their legacy systems, boost operational efficiency, and deliver superior value to policyholders, this awareness could not be more timely. While many carriers have made significant digital transformation strides, the report makes it clear that technology investments need to be accompanied by a strong emphasis on user experience. Successful investments may find themselves falling short without intuitive, efficient, and responsive interactions, particularly during critical moments like claims.
"With digital transformation ongoing in the industry, it's essential for carriers to prioritize reducing friction where it matters most," said Sylvester Mathis, Chief Insurance and Chief Revenue Officer at Insurity. "A cumbersome or disjointed claims process can frustrate customers and risk sending them to competitors. When someone avoids filing a claim despite having coverage, it indicates a breach of trust. If policyholders encounter friction, uncertainty, or rigidity, they'll be less inclined to file a claim and more prone to jump ship."
The survey conducted online in April 2025 included over 1,000 participants randomly selected across the U.S. to ensure demographic representation. Respondents were queried a series of 19 questions, encompassing multiple-choice options and scale-based assessments, to gauge attitudes towards their digital interactions. Data was analyzed to identify key trends and insights.
For additional details on Insurity's 2025 Digital Experience Index and how policyholders feel about their digital experience with P&C insurers, please reach out to [email protected].
About Insurity
Insurity is a preeminent provider of cloud-based software for insurance companies, brokers, and managing general agents (MGAs). Trusted by 22 of the top 25 P&C carriers and 7 of the top 10 MGAs in the U.S., Insurity boasts over 400 cloud-based deployments. Through its best-in-class digital platform, industry expertise, and the industry's most robust analytics, Insurity is ideally positioned to deliver outstanding value, enabling customers to focus on core business activities, optimize operations, and provide exceptional policyholder experiences. Insurity is a portfolio company of GI Partners and TA Associates. For more information, visit www.insurity.com.
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- The new study from Insurity indicates that a significant number of consumers are willing to switch insurance providers if the digital claims process is seamless and user-friendly, suggesting the importance of investing in digital transformation to improve infrastructure and enhance performance in cloud-based systems.
- The 2025 Digital Experience Index survey reveals a concerning trend where excessive frustration and complexity in the claims process have led 22% of consumers to abandon filing claims, underscoring the urgent need for insurers to prioritize digital transformation to maintain customer trust, loyalty, and long-term value.
- As insurers focus on modernizing their legacy systems and delivering superior value to policyholders, the report emphasizes the critical role of a strong user experience in successful digital transformations, emphasizing that investments should prioritize intuitive, efficient, and responsive interactions, particularly during critical moments like claims.
