What the 2026 Insurance Benchmark Report Revealed About Customer Experience

By Eileen Potter, VP of Insurance Marketing at Smart Communications 

If you’ve spent time talking to insurance leaders recently, you’ve likely heard a familiar mix of priorities: digital transformation, AI, personalization, efficiency. None of that is new. What's new is the widening gap between these priorities and what customers report they’re actually experiencing. 

The 2026 Benchmark Report on Customer Experience in Insurance puts a spotlight on that gap informed by thousands of consumer responses across regions. And, the takeaway is pretty clear: insurers are making progress, but not fast enough – or not always in the ways that matter most to customers. 

Customers Aren’t Against AI, But They’re Not Convinced, Either 

There’s a lot of excitement about AI in insurance, especially for improving efficiency across claims and policy servicing. But customers are approaching it with caution, necessarily so. 

For example, 85% of consumers say it’s important to know when AI is being used in their interactions. That’s not a minor preference – that’s a baseline expectation. Transparency matters.  

At the same time, confidence in AI dipped compared to last year. Less than half of customers feel confident about AI handling their data securely. Further, concerns about privacy, errors, and a lack of human oversight remain high.  

Here’s the nuance: people aren’t rejecting AI. They’re saying, “Use it when it helps me, and be upfront about it.” 

They’re also clear on what “help” looks like: 

If AI delivers those things, customers are open to it. If not, it just feels like another layer of complexity. 

Data Collection Remains Harder Than It Should Be 

This is one of the most surprising parts of the report. With all the investment in digital tools, you might expect data collection processes – forms, applications, claims intake – to be a solved problem. 

They’re not. 

Only about a third of customers say insurance forms are easy to complete. That is especially concerning, considering 61% say they’re likely to abandon an interaction if the process is too difficult.  

These are moments that directly impact new business, retention, and satisfaction. 

Here’s what frustrates people most: 

But when companies get this right, the payoff is huge. Customers are far more likely to stay loyal, recommend the company, and even buy additional products. 

So, this goes beyond an operational issue and becomes a growth lever when resolved. 

Digital Is an Expectation, Not an Option  

Another theme that comes through clearly: customers don’t see digital experiences as a bonus. They see them as standard. 

About 73% say it’s important to have digital options to submit information instead of only manual processes like printing and mailing forms.

And 68% prefer digital self-service over calling for common tasks.  

That preference skews even higher among younger generations, but it’s not limited to them. Across age groups and regions, the direction is the same. 

It goes beyond just “being digital.” Customers want: 

In other words, they want experiences that feel as seamless as what they get from retail, banking, or travel platforms. 

Customers Notice Communications Are Slipping 

One of the more concerning findings is that satisfaction with the communications they receive from their insurers dropped significantly year-over-year. 

Only 50% of customers now rate insurer communications as very good or excellent, down from 60% the previous year.  

That’s not a small dip – that’s a signal. 

Why does this matter? Because communication is where the relationship actually shows up. It’s how customers experience your brand during policy updates, billing questions, and especially during claims. 

And those moments aren’t neutral. They’re often stressful or emotional. 

The report highlights a few consistent issues, like: 

And when communication falls short, customers take action. About 62% say they’re likely to switch providers if communications don’t meet expectations.  

That’s a direct link from CX quality to churn. 

Friction is Everywhere – And It’s Costing You 

If there’s one theme that ties the entire report together, it’s friction. 

Customers are running into it across the journey: 

In fact, 88% of customers say it’s important that their information carries over seamlessly between channels.  

And yet, satisfaction with omnichannel experiences is just above 50%. 

So, there’s a clear gap between expectation and reality. 

This is where a lot of technology modernization efforts stall. Systems don’t talk to each other, processes aren’t fully connected, and the experience feels fragmented – even if each individual piece works fine on its own. 

Here’s What Insurers Can Do 

The report doesn’t just highlight challenges, it points toward practical next steps. A few that stand out: