Study: Customer Satisfaction with Property Insurers Drops Due to Premium Hikes and Long Wait Times
A recent study reveals a dip in customer satisfaction with property insurers, largely due to higher premiums and longer wait times. The 2025 U.S. Property Claims Satisfaction Study, redesigned for this year, shows that while digital tools and effective communication can boost satisfaction, insurers face challenges from increased catastrophic events and premium hikes.
The study, involving 5,178 homeowner insurance customers who filed a claim within the past nine months, found that half had experienced insurer-initiated premium increases in the last year. This led to a significant drop of 101 points in satisfaction scores. Longer claim processing times also impacted satisfaction, with claims completed within 10 days scoring 762, compared to just 595 for those taking over 31 days.
Insurers are grappling with increased catastrophic events, leading to financial losses on premiums with no sign of abating. However, some insurers have managed to improve satisfaction scores through enhanced communication. Gothaer, Allianz, and WGV were noted for their friendly, competent service and efficient claim handling. Digital tools, particularly apps, also played a role in increasing satisfaction when used for filing claims and receiving updates. Notably, Gen Z and Millennials were more comfortable managing claims digitally than older generations.
The study underscores the importance of effective communication and digital tools in maintaining customer satisfaction. However, insurers face a challenging environment due to increased catastrophic events and premium hikes. As the average claim cycle time now stands at 32.4 days, with final payment taking over 44 days, insurers must strive to improve efficiency and transparency to meet customer expectations.
