The P&C insurance customer-experience disconnect

For P&C carriers navigating commoditization, market volatility and rising expectations, this disconnect is more than a perception issue. It’s a signal that experience may be the most underleveraged lever left to drive performance.

What the data shows

The CX20 report identified 20 specific experience breakdowns, or “gaps," that impact customer satisfaction and business results. Five are particularly relevant to the P&C sector:

1. The perception gap. Most insurers believe they’re meeting expectations. Yet 89% of leaders say this is now urgent, and nearly half admit the gap is growing. Why the urgency? Because strong CSAT and NPS scores can’t catch what customers actually feel between the touchpoints. The real risk is flying blind while loyalty quietly erodes.
2. The communication gap. Customers expect proactive, clear communication — especially during claims. Yet 45% of customers cite inconsistent messaging, and 43% say feedback loops are weak or missing. Disjointed updates erode trust.
3.  The service gap. Claims remain the defining moment in insurance. Still, roughly 54% of leaders cite staffing or training gaps that limit their teams’ ability to deliver consistent service. Empathy, context and follow-through are still inconsistent.
4.  The feedback gap. Insurers gather plenty of feedback, but more than half of leaders say they struggle to act on it. Customers notice when insights don’t lead to improvements. Closing the loop builds trust.
5.  The personalization gap. Policyholders expect insurers to “know them," and not just through demographics, but through preferences and history. Yet 50% of businesses still offer generic, one-size-fits-all experiences, especially during onboarding and renewals.

Why it matters now

The business case for experience is no longer anecdotal:

• 67% of customers spend more with companies that get CX right;
• 50% are willing to switch providers for better service — even at a higher cost; and
• 85% of loyal customers consider leaving after repeated poor experiences.

At a time when digital tools, new entrants and climate events are reshaping the market, experience has become the connective tissue between trust and growth. It reduces friction, builds confidence and supports differentiation in a category where most policies look similar.

Yet while digital investments have surged, 63% of leaders say they haven’t seen meaningful CX outcomes. Why? Because experience isn’t just about technology; it’s about how people feel throughout the journey.

How top insurers stand out

The best-performing insurers in the CX20 study didn’t just talk about customer experience; they made it a company-wide priority. Instead of leaving it to the marketing team, they got everyone involved, from product designers to claims handlers and operations staff.

• They focused on the right metrics. These carriers went beyond basic satisfaction scores. They dug into specifics like how long it took to resolve a claim, how much effort customers had to put in, and whether the experience felt seamless whether someone called, went online, or used the app.
• They tackled the big pain points first. Rather than trying to fix everything at once, they zeroed in on the moments that frustrated customers most — like confusing onboarding processes or unclear updates during a claim.
• They got everyone on the same page. Customer experience wasn’t just one department’s job. These insurers built teams that worked together, shared the same goals, and turned customer feedback into real changes across the business.
  

From insight to action

The slideshow above illustrates what insurers should consider to move from customer-experience awareness to improvement.

The experience gap in insurance isn’t due to a lack of care; it’s often a lack of visibility.

The good news is: Once seen, this gap can be closed. The insurers that successfully close this gap won’t just improve satisfaction scores. They’ll gain loyalty, advocacy and competitive advantage.

Product and price may open the door. But experience is what keeps customers from walking out.

Jeannette Michels is head of Marketing for Amdocs Studios, Experience Design & Digital Engineering.

See also:

• Auto insurers with the highest Net Promoter Score
• Home insurers with the strongest Net Promotor Scores