When Insurance Loses Customers: A Story That Happens Every Day

When Insurance Loses Customers: A Story That Happens Every Day

It usually starts with something small — a delayed claim update, a confusing coverage explanation, a billing issue that takes too long to resolve. For one customer, the breaking point was waiting on hold for the third time, only to hear, “We will call you back.” He never received that call.

This customer is not exceptional. It reflects deep-rooted patterns in how insurers communicate, support, and resolve issues for millions of policyholders.

How We Know What Customers Really Feel: A Multi-Channel View of the Customer Voice

Reviews, Calls, Surveys — Each Tells a Different Part of the Story. Reviews capture the final emotional outcome. Calls reveal early-stage frustration. Surveys quantify satisfaction and effort. Together, they form a complete CX picture that the industry rarely analyzes holistically.

Methodology: Why Three Years of Data Reveals What One Year Hides

Comparing 2024 and 2025 alone misses the full picture. By adding 2023 data, we can distinguish between temporary operational glitches and long-term systemic failures. The three-year trend reveals that 2024 was often the year of "operational break," while 2025 became the year of "reputational consequence." It highlights growing tensions in claims, coverage clarity, customer service availability, and billing transparency.

Waves of Frustration: How Review Volumes Shifted Across 2023–2025

The volume and categories of reviews help insurers understand how and when dissatisfaction escalates publicly.

• Customer Service and Claim Issues dominate complaints across all three years.
• 2024 shows sustained peaks, especially in Customer Service, driven by slow responses and unresolved issues.
• 2025: Continuation or Turning Point? While review volumes dropped significantly in 2025, the decline does not indicate improved satisfaction. Call volumes also fell, and CX metrics paint a more complex picture: dissatisfaction rose even as fewer customers complained publicly. This suggests a dangerous pattern: silent churn.

Visualizing the Trajectory of Failure: What the Heatmaps Reveal (2023–2025)

By comparing normalized heatmaps of companies’ reviews from 2023, 2024, and 2025, we move beyond simple complaint volumes to see the evolution of customer sentiment. These visualizations highlight the "density" of dissatisfaction—showing not just that customers are unhappy, but exactly what is driving them away.

The data reveals a disturbing trend: unaddressed operational bottlenecks do not remain static. Over time, they mutate from simple service frustrations into severe reputational crises. When we track these shifts year over year, three distinct narratives of failure emerge: The "Trust Cliff," the "Service Death Spiral," and the "Stagnation Trap." 

Download Customer Complaints Benchmarking 2023-2025. Complaints Benchmarking 2023-2025.pdf.

Let's discover the most interesting cases.

1. The Trust Cliff: State Farm Insurance

The most alarming trend in the dataset belongs to State Farm. It perfectly illustrates how unresolved claims issues eventually destroy customer trust.

• 2023 (The Baseline): The situation appeared manageable. "Claim Issues" accounted for 19% of feedback, while generic "Insurance Requests" dominated at 35%. Customers were interacting, but not necessarily hostile.
• 2024 (The Break): Something snapped in their operations. "Claim Issues" spiked massively to 42%. The narrative focused on delays and denials.
• 2025 (The Collapse): The consequences of 2024 arrived. While specific complaints about "Claim Issues" dropped to 17%, they were replaced by something far worse: "Fraud Concerns or Scam" skyrocketed to 28%.
• The Insight: When a company fails to fix a claims bottleneck (2024), customers stop believing it is incompetence and start believing it is malice.

2. The Service Death Spiral: UnitedHealthcare & Domestic and General

For some insurers, the problem isn't a specific product failure, but a total collapse of accessibility.

• UnitedHealthcare (UHC): In 2023, UHC’s issues were technical, with 20% of complaints related to "Account and Access". By 2025, these technical frictions had bled into general interaction. "Customer Service Issues" surged to 44% of all negative feedback. This suggests that the support infrastructure is no longer just "buggy"—it is overwhelmed.
• Domestic and General: A new entrant to the high-complaint list in 2025, this firm set a worrying record. 55% of its negative reviews are tagged as "Customer Service Issues" — the highest concentration of a single failure point for any firm in the entire three-year dataset.

3. The Stagnation Trap: CarShield & SquareTrade

While some firms faced dramatic shifts, others are trapped in a flat line of poor core performance.

• CarShield: The problem has always been, and remains, the product itself. "Claim Issues" have steadily worsened year over year: 10% (2023) → 20% (2024) → 25% (2025). The data indicate a "frog in boiling water" scenario in which service quality degrades as the customer base grows.
• SquareTrade: Consistency is not always a virtue. In 2023, their top issue was "Claims" at 31%. In 2025, it remains 29%. This lack of movement suggests a structural inability to fulfill their primary promise: paying out when things break.

4. The Retention Squeeze: Admiral and Churchill

In 2025, a new pattern emerged for UK-based insurers: the inability to leave.

• Admiral: Historically, Admiral has maintained a neutral profile, with "Insurance Requests" dominating their feed (60% in 2023). However, in 2025, a specific crack appeared: 23% of complaints were focused on "Issues with Request for Cancellation".
• Churchill Insurance: This trend is even more pronounced for Churchill, where 43% of 2025 complaints concerned cancellations. When nearly half of your negative feedback comes from people trying to leave, your retention strategy has likely become a liability." 

Leaderboard of Pain 2025: Where Firms Failed Most

Instead of listing every company, we highlight the most critical outliers in the 2025 data that define the industry's negative benchmarks.

Turning the Tide: Strategic Fixes for the 4 Crisis Zones

Data from 2025 shows that generic "improvement" is no longer enough. To reverse the trends of Silent Churn and Reputation Collapse, insurers must target specific operational failures. Here are the immediate steps to fix the four most critical pain points identified in the heatmaps.

1. Fixing the "Service Death Spiral" (Accessibility)

The Problem: Customers cannot reach support, leading to skyrocketing CES (Customer Effort Score) and giving up (Silent Churn).

• Step 1: Implement "Callback First" Logic. Stop forcing customers to wait on hold. If wait times exceed 3 minutes, offer an automated callback. This immediately lowers effort and respects the customer's time.
• Step 2: Unify Agent Context. Ensure agents can see the customer's claim status and recent interactions before they say "Hello." The #1 driver of frustration is repeating the story to multiple agents.
• Step 3: Empower Tier-1 Agents. Data shows escalations are killing CSAT. Give frontline agents the authority to issue small refunds or approve minor policy changes without manager approval to resolve issues on the first contact.

2. Fixing the "Claims Trap" (Friction & Silence)

The Problem: Claims are not just denied; they are delayed without explanation, causing anxiety.

• Step 1: Proactive "Push" Updates. Don't wait for the customer to call. Send automated SMS/Email updates at every stage (e.g., "Appraiser Assigned," "Reviewing Documents"). Silence breeds distrust.
• Step 2: Simplify Document Uploads. Eliminate the need for mailed forms or fax. Mobile-first document scanning with instant validation reduces the "back-and-forth" cycle that delays payouts.
• Step 3: Explain the "Why" in Plain English. If a claim is denied or adjusted, avoid legal jargon. Use clear, empathetic language to explain the policy limit or exclusion. Understanding reduces anger, even in negative outcomes.

3. Fixing the "Trust Cliff" (Fraud & Scams)

The Problem: Operational delays are being misinterpreted by customers as malicious fraud or scams.

• Step 1: Human Review for "Flagged" Accounts. Before an algorithm freezes an account or claims it for fraud, ensure that a human reviews the case. False positives are the fastest way to destroy a long-term relationship.
• Step 2: Create a Dedicated Resolution Path. If a customer is flagged for fraud, give them a specific, direct channel to clear their name. Do not route them through general support, where agents often lack the clearance to help.
• Step 3: Transparency on Delays. If a payout is delayed for security checks, tell the customer exactly that. "Processing" sounds like an excuse; "Security Verification" sounds like a procedure.

4. Fixing the "Retention Squeeze" (Cancellations)

The Problem: Customers feel held hostage by difficult cancellation processes, turning neutral departures into hostile ones.

• Step 1: Digital Cancellation Options. Allow customers to cancel online. Forcing a phone call to a "retention specialist" creates hostility and ensures the customer will never return.
• Step 2: "Soft Landing" Downgrades. Instead of just blocking an exit, offer a "paused" status or a minimal-coverage plan. Many cancellations are financial; offering a cheaper alternative retains the customer relationship.
• Step 3: Exit Surveys that Matter. Use the cancellation flow to ask one specific question about why they are leaving. Use this real-time data to fix the upstream issues (Price? Service? Claims?) preventing future churn.

What Customers Complain About: The Issues That Shape Reputation in the Insurance Sector

Complaints cluster in five core themes that heavily influence customer trust and retention.

Claim Issues: The Moment You Lose the Most Customers

Claim-related complaints remain one of the highest categories year after year. Customers primarily struggle with delays, denials, unclear explanations, and repetitive documentation requests.

Business impact: Claim friction directly increases churn, customer anger, and regulatory risk.

Coverage Complaints: When Expectations Don’t Match Reality

Coverage issues — exclusions, limitations, unexpected policy changes — consistently frustrate customers. These problems often stem from unclear communication rather than product flaws.

Business impact: Improving coverage explanations dramatically reduces dissatisfaction and protects retention.

Customer Service Failures: Slow Responses and Lost Loyalty

Customer Service complaints remained the largest category across all three years. Consumers describe long hold times, inconsistent agent knowledge, and unresolved escalations.

Business impact: Slow response times correlate strongly with churn, negative reviews, and reduced CSAT.

Billing and Refund Problems: Small Errors, Big Consequences

Billing complaints — incorrect charges, delayed refunds, lack of clarity — have high emotional impact. Customers perceive billing mistakes as unfair, even deceptive.

Business impact: Billing errors damage trust quickly and increase call center costs.

Product Performance Issues: Repairs, Breakdowns, and Unmet Needs

Product and repair issues affect daily life and therefore, fuel strong dissatisfaction. Consumers report multiple failures, repeated claims, and limited support.

Business impact: Poor vendor performance multiplies operational expenses and hurts long-term retention.

What Happens Before the Complaint: Insights from Call Data

Calls are the earliest signal of friction — appearing weeks before reviews.

Call Volume Trends — Your Earliest Warning Signal

While overall platform traffic fluctuations may contribute to lower numbers, the pattern of the decline reveals a deeper truth. The data shows a significant discrepancy between categories: routine service complaints evaporated at nearly double the rate of serious allegations like deception or fraud.

This indicates that the sharp decline in call volume across every category in 2025 is not a sign of lower issue frequency. Instead, it suggests that customers are giving up on fixing "minor" operational annoyances and are only engaging when they feel severely wronged. This is the definition of silent churn: customers losing access or the will to contact support entirely.

The Most Common Reasons People Call Their Insurance Provider Insurance Requests, Billing, Claims, and Customer Service remain the top drivers of call volume. These categories reflect the core moments where self-service channels fail, forcing customers to seek direct assistance.

Notably, coverage-related calls decreased drastically in 2025. This decline does not indicate that coverage questions disappeared. Instead, it mirrors the drop in review data, suggesting that customers no longer expect helpful support and are avoiding engagement altogether. When issue frequency remains high (as seen in sentiment analysis) while customer contact decreases, it confirms reduced trust in support channels.

Slow Response Times as a Systemic Issue Crucially, fewer calls did not lead to easier service. Customer Effort Score (CES) increased again in 2025. This creates a paradox: there are fewer people calling, yet those who do must work significantly harder to reach a resolution—navigating long wait times, repeated transfers, and inconsistent information.

These friction points amplify frustration because they occur during high-stress moments like billing disputes or denied claims. As accessibility declines, dissatisfaction rises, even if the total call volume appears deceptively low.

CX Metrics That Define Performance and Retention

Before predicting where CX is heading, we must understand how satisfaction, effort, and resolution quality evolved.

CES — How Hard Customers Have to Work to Get Help

A CES of 7 in 2025 reflects a high‑effort experience. In practical terms, this means customers faced obstacles such as long waits, repeated explanations, inconsistent information, or difficulties reaching a real agent. High effort is one of the strongest predictors of churn. When customers feel they must “fight” for service, loyalty collapses.

CSAT — How Satisfied They Are with the Resolution

CSAT fell from 87% in 2024 to 52% in 2025. This drop indicates that resolutions delivered in 2025 did not meet customer expectations. Even if the issue was technically closed, many customers felt the explanation was unclear, the solution was incomplete, or the process was frustrating.

Resolution Rate — Whether Companies Actually Solve Problems

The Resolution Rate increased to 70% in 2025. More issues were being marked as resolved, but customers still felt dissatisfied. This shows a widening gap between operational completion and emotional resolution. Insurers may be closing tickets, but not closing the experience.

Average Resolution Time — Speed as a Trust Driver

Resolution Time improved year over year (1.7 → 1.5 → 1.3 days). Faster service alone, however, did not restore trust. Customers increasingly expect personalized explanations, proactive communication, and transparency—not just quick responses.

Retention Intent — The Ultimate Indicator of Customer Health

Retention Intent rose from 43% to 68% between 2024 and 2025. Despite lower satisfaction, many customers still planned to renew—likely due to limited market alternatives, pricing concerns, or established policy benefits. This shows that retention in 2025 was driven more by barriers to switching than by positive experience.

These metrics together reveal a critical pattern: insurers improved operational speed but failed to improve the quality of communication, emotional reassurance, and customer trust. This disconnect is the strongest signal shaping the outlook for 2026.

What the Insurance Market Should Expect in 2026: Forecasts and Scenarios

Based on trends in complaints, calls, and CX metrics, two scenarios emerge.

If Current Trends Continue

Insurers should prepare for:

• More dissatisfaction with customer service — rising CES indicates customers will face increasing difficulty reaching support, receiving consistent answers, and resolving fundamental issues.
• Increased pressure on claim teams — claim‑related complaints remain high; unresolved issues will create backlogs, slower processing, and more escalations.
• Continued confusion over coverage — unclear documentation and inconsistent explanations will continue generating frustration during renewals and claim submissions.
• Lower customer engagement — fewer calls and fewer reviews suggest customers disengage rather than complain, heightening the risk of silent churn.
• Unstable satisfaction levels — CSAT may fluctuate unpredictably as customers experience fast but incomplete or unclear resolutions.

This combination increases churn risk even if reviews decline.

If Companies Decide to Improve

With targeted improvements, companies can expect:

• Fewer repeated complaints — solving root issues in claims, billing, and coverage clarity reduces recontact cycles.
• More efficient claim operations — streamlined workflows and clearer communication prevent delays and reduce customer frustration.
• More substantial customer confidence — transparent decision-making and proactive updates improve trust, especially in high-stress claim scenarios.
• Higher CSAT — customers respond positively when they feel heard, understood, and supported throughout the service journey.
• Lower service costs — fewer escalations, shorter call durations, and reduced repeat contacts decrease operational expenses.

Strategic Takeaways for 2026

• Fix root causes in claim and coverage communication to prevent confusion and reduce the need for repeated explanations.
• Improve support accessibility — not just response speed so customers can reach knowledgeable agents when it matters most.
• Enforce billing accuracy and transparency to reduce friction, rebuild trust, and minimize disputes.
• Standardize agent training to ensure consistent communication and eliminate contradictory answers.
• Use call patterns as predictors of dissatisfaction to detect issues early and intervene before complaints escalate.

Risks vs. Actions: What Insurance Leaders Must Address Now

Below is a clear breakdown of the most critical CX risks identified in 2023–2025 data — and the specific actions insurers should take to mitigate them.

How PissedConsumer Helps Insurance Companies Improve CX and Reduce Churn

PissedConsumer provides insurers with actionable insights into:

• Root causes of complaints — identifying the specific processes, touchpoints, and decision points that trigger customer frustration across claims, coverage, billing, and customer service.
• Early warning signals from call behavior — detecting rising friction before it surfaces in public reviews, allowing insurers to intervene proactively and prevent customer churn.
• Competitive benchmarking — showing how a company performs against peers in key CX dimensions, highlighting where competitors excel and where weaknesses create strategic disadvantages.
• Multi-year sentiment trends — revealing how customer perception evolves over time, which issues are persistent, and which improvements have a measurable impact.
• CX performance tracking over time — enabling insurers to monitor whether operational changes actually improve customer outcomes or unintentionally create new pain points.

The customer behavior data from PissedConsumer enables companies to understand where customer frustration begins, how it escalates, and what steps can stop small issues from becoming public complaints that damage reputation and retention.

If you want to understand how your company compares to industry leaders—and where hidden risks may be costing you customers—we’re here to help.

Contact us to get a tailored insights report for your company and start improving your customer experience today.