With the recent publish of the J.D. Power 2025 U.S. Individual Life Insurance Study, we set out to explore whether the digital experience has improved for life insurance customers in the last year. A comparison with 2024 data indicates that life insurance customers have seen no measurable progress in digital enablement, and have even seen a decline in some areas.
The following post is an excerpt from our article 3 Key Challenges to Organic Growth (and 3 Focus Areas for Addressing Them) which leveraged data from our 2024 study. Given the critical role digital interactions play in helping carriers manage costs while delivering meaningful client engagement, it is clear that this remains a priority area requiring greater industry focus.
What do customers expect your digital channels to be?
The challenge: Consumers expect fast, frictionless service—whether they’re applying for a policy, reviewing their statement or paying a bill. Long waits, paperwork, and redundant steps cause frustration and abandonment.
The recommendation: Digital tools that streamline processes, minimize effort, and are easy to use / navigate save time, create an experience that increases customer engagement and satisfaction while lowering the cost to serve.
Why is this important?
Despite being the most common method to apply, life insurance customers who said they applied online rated the ease of the process, speed and overall experience lower than all other methods except for those that mailed in a paper application.
55% of life insurance customers said that their most frequent method to review their statement was ‘traditional paper’. NPS for those using traditional paper is 16 points lower than those who use digital most frequently.
Source: J.D. Power 2024 U.S. Individual Life Insurance Study
The challenge: People want to engage with insurers on their terms—anytime, anywhere, on any device. Whether it’s accessing policy documents through a mobile app, chatting with a virtual assistant at night, or scheduling a callback at their convenience, digital convenience builds confidence and loyalty.
The recommendation: If a customer can book a vacation or open a bank account with a few taps, they expect the same from life insurance.
Why is this important?
57% of current life insurance customers strongly agree that they expect their life insurer to allow them to manage their account when and how they want...
...but only 43% of current life insurance customers strongly agree that their life insurer actually does allow them to manage their account when and how they want.
Source: J.D. Power 2024 U.S. Individual Life Insurance Study
The challenge: Consumers appreciate personalized and relevant interactions. When digital platforms use their data thoughtfully—such as reminding them of a coverage review after a life event or recommending a product that fits their family’s needs—it shows that the company understands and values them.
The recommendation: Effective digital enablement means anticipating needs and making meaningful engagement easy and intuitive, not generic or one-size-fits-all.
Why is this important?
52% of current life insurance customers strongly agree that they expect their life insurer to provide a seamless experience across channels and contact methods...
...but only 37% of current life insurance customers strongly agree that their life insurer actually does provide a seamless experience across contact methods.
Source: J.D. Power 2024 U.S. Individual Life Insurance Study
Subscribers to the 2025 U.S. Individual Life Insurance Study can now access this year's results for a deeper exploration into digital interaction channel performance. For brands looking to improve their customer digital experience, contact us today to learn how J.D. Power can help.
About the Author: Craig Martin is Executive Director of the Global Insurance Intelligence Practice at J.D. Power. His decades of experience in the financial services sector, customer experience, market research and data analytics provide him with a unique perspective that helps insurance organizations evolve with consumer expectations.
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