47% of customers buy insurance digitally: JD Power

Customer satisfaction with insurer websites and mobile apps declined across both shopping and servicing interactions, even as digital policy purchases continue to rise, according to JD Power's 2026 U.S. Insurance Digital Experience Study.

The study, which analyzed digital consumer experiences of both new and existing P&C shoppers, finds that 47% of insurance customers purchase new home and auto insurance digitally. Average satisfaction for insurance digital customer experience in the service segment fell four points this year to 695 points on a 1,000-point scale, and average overall satisfaction in the shopping segment is 523 points–12 points lower than last year.

"As insurance prices have started to come down nationwide, a massive volume of active customers and new prospects are comparison shopping and hunting for information on insurer websites and mobile apps," said Eric McCready, director of digital solutions at JD Power, in the press release. "Likewise on the customer service side, the digital channel is quickly becoming the primary touch point between insurers and their customers. Some insurers have embraced this digital transformation by building well-thought-out, easy-to-navigate digital properties, but many are still struggling to deliver the right mix of information and resources customers can use to get the information they need."

One of the biggest pain points for customers is on pricing transparency and coverage comparison capabilities, according to JD Power. Only one-third of insurance shoppers reported seeing comparison tools that included competing insurance brands, just 27% encountered tools comparing policy options within the same insurer's product portfolio and 28% of customers said they encountered no comparison tools at all during the shopping process.

The lack of transparency appears to directly affect purchasing decisions, according to the research. Customers were nearly twice as likely to consider buying a policy when comparison tools were available at 39% versus just 12% when no comparison tools were offered.

"As customers increasingly turn to digital channels for questions about their existing policy, policy changes, or when shopping for a new carrier, websites and apps have become a core component of the insurance customer journey," said Justin Suter, director of market engagement and thought leadership at Corporate Insight, in the press release. "As people start using AI tools for insurance information and even quote comparisons, insurers need to get their digital formulas right to support the new ways in which customers look for information."

Insurance shoppers who used virtual assistants or chatbots on insurers websites and apps reported an average satisfaction score of 645 points, which is 132 points higher than those who did not use such tools. Despite this improvement in customer experience scores, only 11% of shoppers reported using chatbots or virtual assistants while insurance shopping.