Most consumers not sold on fully digital insurance experience – Insurity

A report from Insurity indicates that while many insurers are increasing their investments in automation and self-service tools, only 15% of consumers prefer a fully self-service, digital-only insurance experience.

In its 2025 Digital Experience Index, Insurity also found that 48% of respondents favor a digital-first approach that includes the option to engage with a human representative if needed. The findings suggest that customers value flexible engagement strategies that balance efficiency with accessibility.

The survey also revealed that communication preferences remain diverse. While 47% of consumers primarily use the phone to reach their insurer, 44% prefer to receive updates via email during the claims process.

Other respondents indicated a preference for communication through text messages or app notifications. Insurity’s report suggests that beyond digital adoption, consumer expectations center on having options for how and when they receive information.

As part of evolving engagement models, generational preferences toward digital tools are shaping the direction of insurer strategies. Previous research from Insurity showed that Millennials continue to exhibit the highest comfort and trust in AI-driven insurance services.

Gen Z is emerging as a significant market segment for AI-based solutions, signaling that future customer experience designs will need to account for the growing influence of younger, tech-savvy consumers.

Making the leap to digital

The 2025 Digital Experience Index found that 64% of consumers would consider switching insurers for an improved digital experience. The results indicate that unsatisfactory digital interactions not only lead to dissatisfaction but also contribute to customer attrition. For insurers, the ability to meet evolving digital expectations is emerging as a key factor in customer retention and market positioning.

As insurers refine their digital strategies, Insurity’s data points to the need for a balance between technology and human support. While mobile apps and online portals deliver convenience and speed, the availability of human interaction for complex or high-stakes situations remains important to consumers.

Insurity’s research suggests that integrating human support into digital channels can strengthen connections with policyholders and build trust over the long term.

Insurity’s separate 2025 AI in Insurance Report provides further context on consumer attitudes toward technology use in insurance. Findings show that 45% of consumers are comfortable with insurers using AI to monitor and issue real-time alerts about weather-related risks.

Sylvester Mathis (pictured above), chief revenue and insurance officer at Insurity, said the move toward digitization often misses the more nuanced expectations of customers.

“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,” Mathis said.

Transparency in AI processes is also becoming a significant consideration for consumers. According to Insurity, 64% of consumers identified transparency as a key factor in building trust in AI-driven insurance functions.

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