What do insurance customers want?

Editorial team InsuredAndMore.com Published on October 15, 2026

Modern insurance customers want a hybrid blend of digital speed, clear transparency, and human empathy during stressful moments. While consumers demand the slick, instant functionality common in retail or online banking, they overwhelmingly reject a completely robotic relationship.

A synthesis of comprehensive consumer research highlights what today's policyholders prioritize across their entire journey:

1. Hybrid Communication & "Digital-First" Convenience

Insurance buyers want to manage routine tasks on their screens but demand immediate access to a real human when things get complicated.

The "Phygital" Expectation: According to an Insurity Digital Experience Index, only 15% of consumers want a fully digital, self-service experience. Instead, 48% prefer a digital-first model with a seamless option to speak with someone if needed.
Channel Flexibility: Policyholders want to utilize multiple channels (phone, email, SMS, and in-app updates) depending on the situation.
Omnichannel Continuity: When switching from a text message or a chatbot to a live agent, they expect to not repeat their information or start their problem overview over from scratch.

2. Rapid Response & Stress-Free Claims

Filing a claim is the ultimate test of an insurance provider's brand value, and it is where customer trust is either won or lost.

Anxiety Alleviation: During a loss, theft, or medical emergency, customers want their insurers to actively reduce stress. They seek automated, transparent status tracking so they never have to guess the status of an ongoing claim.
24/7 Availability: According to customer response metrics, "speed of response" and 24/7 availability are the leading demands when dealing with claims. Customers strongly dislike being placed on hold or experiencing administrative friction.
Empathy over Algorithms: While customers appreciate Generative AI for processing claims or generating quotes rapidly, The Geneva Association highlights that customers explicitly demand human empathy and fairness to remain central to major decisions.

3. Radical Clarity and Transparent Value

Historically, insurance policies have been notoriously complex, leading to consumer skepticism. Modern clients want an honest advisor, not a salesperson.

No Hidden Exclusions: Consumers want simple language explaining exactly what is covered and what is excluded, removing the fear of a surprise denial.
Personalized Advisory: Buyers lean on agents for tailored guidance to avoid paying for unnecessary add-ons, seeking an approach centered strictly around their budget and actual liabilities.

4. Dynamic Flexibility and Usage-Based Models

Fixed, multi-year plans are losing appeal, especially to younger demographics like millennials who value financial agility.

On-Demand Customization: Consumers actively seek month-to-month options, simple digital onboarding, and the ability to seamlessly pause or alter coverage dates without penalties due to relocations or life shifts.
Pay-How-You-Live Data Models: Roughly half of customers are willing to buy usage-based insurance (such as pay-as-you-drive telematics) or switchable on-demand products in exchange for data-driven, fair premium pricing.

5. Risk Prevention Over Reimbursement

A major behavioral shift noted by global consultancies like Bain & Company shows that customers now prefer preventing losses altogether rather than simply waiting for a payout check after disaster strikes.

Active Protection: Consumers want safe-driving rewards, automated home water shutoff devices, real-time threat alerts, and proactive digital health diagnostics.
Healthy Living Incentives: Upwards of 59% of consumers want their lifestyle providers to offer healthy living incentives or wellness tracking to actively reduce premium burdens.

Comparison of Key Consumer Motivations

Customer Priority	What They Expect	Industry Pitfall to Avoid
Claims Experience	Real-time tracking, rapid payouts, and compassionate human reps.	Forcing an anxious customer through rigid, automated phone trees.
Pricing Models	Pay-as-you-go, telematics, and transparent loyalty discounts.	Rigid annual policies with one-size-fits-all commoditized pricing.
Digital UX	Seamless, paperless online sign-ups and multi-channel text/app alerts.	Clunky portals requiring wet-ink physical signatures or document mail-ins.

What are the hottest topics in the insurance industry right now?

The hottest topic in the insurance industry right now is the rapid adoption of artificial intelligence—specifically agentic and generative AI—to automate underwriting, claims processing, and broker workflows.

Top Insurance Industry Trends

Artificial Intelligence (AI): Insurers are moving past basic algorithms into live agentic AI workflows to cut claims processing times and review submissions.
Cyber Risk & Threats: Cyber insurance is a fast-growing segment as companies face rising ransomware, deepfake fraud, and data exfiltration. According to insights from Markel, managing digital threats remains a core challenge.
Social Inflation: Liability portfolios face severe pressure from aggressive litigation, higher jury awards, and rising settlement costs.
Softening Market Rates: After years of a hard market, premium growth is slowing down, forcing underwriters to maintain tight pricing discipline.
Catastrophe & Climate Losses: Severe weather and climate risks continue to drive property-casualty loss controls and predictive geospatial technology.

What are 6 common customer needs?

The 6 most common core customer needs in business are functionality, price, convenience, experience, reliability, and personalization.

Functionality: The product or service must actually work and solve the customer's specific problem.
Price: The cost must match the perceived value and fit the buyer's budget.
Convenience: The buying and usage process should save time and minimize effort.
Experience: Interactions with the brand should feel smooth, positive, and stress-free.
Reliability: The offering must perform consistently and dependably over time.
Personalization: Solutions and support should feel tailored to individual preferences.

You can read more about these fundamentals on the Velaro Blog.

What are the 5 C's of insurance?

The 5 C's of insurance—commonly known as the framework for digital transformation in the InsurTech industry—are Communication, Customization, Connection, Cognition, and Consensus.

The 5 C's Framework Explained

Communication: Using digital tools like chatbots and portals to clearly and effectively convey policy promises and build trust.
Customization: Leveraging large data sets and IoT (Internet of Things) devices to provide personalized risk coverage instead of one-size-fits-all policies.
Connection: Engaging customers through added digital services and ancillary support tied to health, wealth, or lifestyle goals.
Cognition: Applying artificial intelligence and machine learning to automate underwriting, detect fraud, and predict risks.
Consensus: Utilizing technologies like blockchain to establish secure, decentralized trust and streamline verification or claims.

(Note: Depending on the context, some industry analysts also refer to a traditional operational set of 5 C's for insurers: Customer, Cost, Coverage, Claims, and Compliance.)

How to attract customers for insurance?

Attract new insurance customers by building local trust, creating educational content, and implementing referral programs.

Local Presence and Trust

Claim and update your Google Business Profile to show up in local map searches and collect client reviews.
Partner with local professionals like real estate agents, loan officers, and accountants who can refer clients buying new homes or starting businesses.
Sponsor community events or local sports teams to increase brand visibility.

Content and Education

Post short, plain-language videos or social media posts explaining complex topics like policy exclusions or coverage gaps.
Use specific hooks on platforms like LinkedIn, Facebook, or TikTok rather than generic sales pitches.
Write blog posts targeting local or searchable keywords, such as homeowners insurance tips for your specific region.

Referrals and Retention

Ask happy clients for referrals directly after providing great service, or set up a formal reward program.
Focus on keeping current clients satisfied, as repeat business and word-of-mouth drive most insurance growth.
Send personalized, segmented email campaigns with policy updates or seasonal check-ins.

CSR24 delivers what insurance customers want

9 related questions found

What are the key insurance trends for 2026?

Key insurance trends for 2026 center on scaling artificial intelligence past pilot phases, adapting to a softening rate market, and managing rising claims costs driven by inflation and climate risks.

Artificial Intelligence & Automation

Escaping Pilot Purgatory: Insurers are moving past isolated AI trials to embed generative and agentic AI enterprise-wide into core workflows like claims and underwriting.
Specialized AI Coverage: New risk products are emerging to insure against algorithmic and machine-learning errors.
Cloud-Native Modernization: Legacy systems are rapidly being replaced by cloud-native SaaS and low-code platforms to increase agility.

Market Dynamics & Underwriting

Softening Market Discipline: Premium growth is decelerating after years of hard-market increases, forcing underwriters to maintain strict pricing discipline.
Social Inflation and Litigation: The liability sector faces ongoing pressure from aggressive litigation, rising jury awards, and escalating medical and repair costs.
Regulatory and Compliance Shifts: Standard-setting bodies like the NAIC are deploying rigorous new frameworks addressing real-time AI models, data privacy, and climate resilience.

Product Innovation & Growth Segments

Parametric Insurance Expansion: Data-driven parametric and hybrid covers are entering the mainstream to provide rapid liquidity for climate catastrophes and supply chain disruptions.
Hyper-Personalization: Real-time IoT data and predictive analytics enable dynamic, usage-based pricing and modular, industry-specific commercial policies.
Health and Life Momentum: Health insurance remains the industry's fastest-growing segment globally, supported by aging demographics and rising medical needs.

Why do most insurance agents quit?

Most insurance agents quit within their first few years due to financial pressure from commission-based pay and unrealistic income expectations.

Industry data shows that up to 80% to 90% of new agents leave the field within the first three years. The main causes behind this high turnover include:

Financial and Income Pressures

Unrealistic expectations: New agents often expect fast six-figure incomes, ignoring that building a client base takes years.
Income inconsistency: Commission structures mean earnings fluctuate wildly from week to week, causing severe anxiety for those used to steady paychecks.
Running out of cash: Many agents exhaust their savings before their residual income and client book become profitable.

Operational and Sales Challenges

Rejection fatigue: Hearing "no" dozens of times a day leads to mental exhaustion, especially for agents who take rejection personally.
Lack of reliable leads: Without a steady, sustainable strategy to find prospective buyers, agents quickly run out of people to pitch.
Poor training and support: Many companies throw new hires into the field with minimal mentorship, bad tools, or unhelpful multi-level marketing (MLM) structures that strain personal relationships.

Burnout and Lifestyle Factors

Overwhelming workloads: Many agents increase their hours to chase quotas, leading to chronic stress and burnout.
Isolation: Working independently or from home removes peer support systems that normally buffer against daily stress.
Family strain: Long hours, evening calls, and weekend appointments often create friction at home if family support is lacking.

What are the three things every customer wants?

Every customer fundamentally wants convenience, affordability, and high quality from the products and services they purchase.

Most users on Quora agree that these three core elements drive nearly all purchasing decisions and brand loyalty.

Core Customer Wants

Convenience: Customers want a smooth, fast, and frictionless buying process with easy access to support and clear information.
Affordability: Buyers look for fair pricing that matches the value they receive, ensuring they feel their money is well spent.
High Quality: Products and services must perform reliably, last, and solve the customer's specific problem effectively.

What are the five most basic customer needs?

The five basic universal customer service needs are friendliness, empathy, information, fairness, and control.

The 5 Basic Needs

Friendliness: Customers want warm, polite, and courteous interactions. A friendly greeting or a kind tone sets a positive foundation for the entire experience.
Empathy: Customers need to feel that the business truly understands and cares about their specific situation, feelings, or frustrations.
Information: Customers want clear, accurate, and timely details regarding products, services, pricing, and how things work.
Fairness: Customers expect just and equal treatment without bias, along with transparent and reasonable policies.
Control: Customers want a sense of influence over the outcome. They appreciate having choices, active listening from staff, and options to manage their experience.

What are 10 ways to improve customer service?

Improving customer service requires a mix of active listening, team training, and efficient tools.

Here are 10 key ways to improve customer service:

Practice active listening: Let customers explain their full problem without rushing them, and repeat the issue back to confirm you understand.
Invest in regular staff training: Teach your team product knowledge, empathy, and how to stay calm during tense situations.
Empower your team: Allow customer service reps to make on-the-spot decisions and issue basic refunds or fixes without asking a manager.
Offer omnichannel support: Let customers reach you through their preferred channel—such as phone, email, live chat, or social media—while keeping the conversation connected.
Collect and act on feedback: Use surveys, Net Promoter Scores (NPS), and reviews to find weak spots in your service, and fix them.
Use a CRM database: Keep customer history and past interactions in a central place so reps never ask a customer to repeat themselves.
Set clear service standards: Establish measurable goals for response times, resolution speed, and professional tone across the whole team.
Own your mistakes: Apologize sincerely when things go wrong and focus immediately on a clear solution instead of making excuses.
Leverage automation wisely: Use chatbots and AI tools to handle simple, repetitive after-hours questions so human agents can focus on complex problems.
Follow up after resolution: Send a quick message or survey after a fix to make sure the customer is happy and to show you care about their long-term experience.

You can review additional frameworks in detail with the Forbes Advisor Guide on Customer Service.