Poor digital claims experiences are leading some consumers to disengage, according to a survey by cloud-based insurance software provider Insurity.

As digital tools become the primary channel for customer engagement, the survey highlights that poor claims experiences are not just process inefficiencies but key drivers of lost trust and reduced customer loyalty.

The 2025 Digital Experience Index, a national online survey measuring consumer sentiment around digital interactions with P&C insurers conducted in April 2025, found that 22 percent of consumers have avoided filing an insurance claim because the process was too frustrating or complicated, highlighting a critical gap in the claims experience that insurers should address to protect trust, loyalty, and long-term value.

The survey also found that 64 percent of consumers would consider switching insurers for a more seamless digital experience, revealing how poor interactions, especially during the claims process, can drive customers to competitors.

The survey highlights how intuitive, user-centric digital experiences will strengthen retention and build long-term customer loyalty.

While many carriers have made significant progress in digital transformation, the findings make clear that technology investment must be paired with a strong emphasis on user experience. Investments without intuitive, efficient, and responsive interactions may fail to deliver meaningful returns, Insurity added.

“As carriers evaluate their core systems and digital infrastructure this year, the priority must be reducing friction where it matters most,” said Sylvester Mathis, chief insurance and chief revenue officer at Insurity. “A clunky or disconnected claims process frustrates customers and risks sending them elsewhere. When someone avoids filing a claim, despite having coverage, it signals a fundamental breakdown in trust. If policyholders feel friction, uncertainty, or inflexibility, they’re less likely to file a claim, and far more likely to leave.”