Frustrating Claims Processes Drive Policyholders to Avoid Filing and Consider Switching Insurers

A recent national survey from Insurity reveals growing consumer dissatisfaction with digital claims processes among property and casualty policyholders. According to the 2025 Digital Experience Index, 22% of respondents chose not to file a claim because they found the process too complicated or frustrating. This suggests a significant trust and usability gap between what policyholders expect and what insurers currently deliver in digital interactions.

Perhaps even more concerning for carriers, 64% of surveyed consumers said they would consider switching insurers for a more seamless digital experience. The data underscores the increasing importance of user-friendly technology in policyholder retention. A slow or disjointed claims process doesn’t just risk frustrating customers—it can directly drive them to competitors.

Insurity’s report also highlights that despite the industry’s push for digital transformation, software solutions alone aren’t enough. Customer experience—particularly during the claims process—remains central to policyholder satisfaction. When the claims journey becomes too friction-filled, it erodes trust and discourages usage of the very coverage that insurance is meant to provide.

Industry leaders are being urged to reevaluate their claims infrastructure, focusing not just on automation or digitalization, but on usability and end-to-end customer experience. According to Insurity’s Sylvester Mathis, simplifying the claims experience should be a top priority in 2025 if insurers hope to improve engagement and reduce churn.