Customer satisfaction with individual life insurance providers in the United States has remained steady this year, but underlying data reveals considerable variation among brands. The J.D. Power 2025 US Individual Life Insurance Study, released today, reports a 118-point gap between the highest and lowest scoring life insurers on a 1,000-point scale.
Additionally, 70% of insurers saw double-digit changes – either increases or decreases – in their customer satisfaction scores compared to last year. Much of this volatility is linked to differences in relationship management and the methods by which policies are purchased.
“Customer satisfaction with individual life insurance providers is not just about the product; it’s also about the customer experience, and those experiences can vary dramatically both at a brand and a relationship level,” said Craig Martin (pictured above), executive director, global insurance intelligence at J.D. Power.
He noted that significant gaps exist between customer expectations and reality, particularly when policies are purchased and serviced through local agents or financial advisors. Martin added that experiences become more predictable and standardized through direct-to-customer channels, but challenges remain.
“Regardless of the relationship dynamics, life insurers have a lot of opportunities to enhance the customer experience in ways that build greater trust and engagement that will help grow the business and the bottom line,” he said.
The study found that customers who buy life insurance directly from carriers report higher satisfaction, with an average score of 696. This is 57 points higher than those who purchase through agents, brokers, agencies, or financial advisors.
Direct channels such as carrier call centers, websites, or apps outperform in several key satisfaction metrics, including digital experience, problem resolution, and perceived value for price paid.
Interactions with agents and advisors are often limited. The study shows that 58% of life insurance relationships with agents or advisors are either disengaged – meaning no interaction for more than three years – or transactional, where some interaction occurs but best practices are not met.
Only 19% of customers describe their relationship as trusted, marked by regular communication and adherence to best practices. When agents and advisors deliver this level of service, satisfaction rises to 795, which is 253 points higher than among customers whose agents do not follow best practices.
Digital efficiency is playing a larger role in shaping customer satisfaction. Customers who use insurer apps to file claims, submit photos, and receive updates report higher satisfaction. The convenience and accessibility of digital tools are especially valued by younger policyholders, such as Gen Z and Millennials, who are comfortable managing claims digitally.
However, some older customers still prefer traditional communication channels, indicating the need for insurers to offer a range of service options to meet diverse preferences.
Regular and personalized communication from insurers is also associated with higher satisfaction. Customers who recall receiving communication from their provider in the past 12 months report satisfaction scores 50 points higher than those who do not.
Communications that are personal and demonstrate an understanding of the customer relationship have the greatest effect, while generic product offers and basic account updates have less impact.
Rising premiums are also affecting customer loyalty in the broader insurance market. Among homeowners who faced a premium increase and are unlikely to renew, 43% cited the recent price hike as their reason for considering a switch.
This trend highlights the importance of clear communication and value in retaining customers, as price sensitivity continues to influence policyholder decisions.
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