Eileen Potter, VP of Marketing at Smart Communications talks about building trust though customer experience
Trust is one of the most important and fragile assets in the insurance industry, and right now, it’s facing serious strain. UK customer satisfaction with insurers fell to 84% at the end of last year, with only 14% of customers reporting extreme satisfaction, the lowest it has been since 2019.
Denied claims, confusing policy documents, and a lack of communication leave many customers feeling like they’re navigating a system built to work against them. They expect protection but often perceive profit as the priority. For insurers, this creates a real challenge and raises the question of: how do you rebuild trust in an environment where so many customers feel let down?
The answer lies in customer experience (CX), not just as a buzzword, but as a strategic focus – deployed in ways that are evident at every interaction throughout the insurance lifecycle. In fact, CX may be the most powerful lever insurers can pull to close the trust gap and position themselves as a trusted advisor that delivers real, long-term value to policyholders.
Why trust is under pressure
At its core, insurance is a promise. Pay a premium today for peace of mind tomorrow. But when customers actually need to use their policy, the experience doesn’t always live up to expectations. If a claim is denied or appears delayed, or if the process feels opaque or overly complex, trust erodes quickly.
On top of a trust deficit, common perception of impersonal service, use of legalistic jargon, and a lack of transparency create a situation where even loyal customers start to question their insurer’s commitment to them.
It’s not just a reputational risk; it’s a business one, as declining trust can lower customer retention. Additionally, policyholder complaints can lead to increased regulatory scrutiny, further cementing the theory that success truly lies behind great CX. For example, 66% of customers are likely to switch to a different company if their communication expectations are not met, leading to a reduction in brand loyalty.
How can insurers rebuild trust?
There are clear and achievable steps insurers can take to reshape how customers experience their brand. It starts with three core principles: transparency, empathy, and proactive communication.
1. Make transparency your default
Customers want clarity on what their policy covers, what it doesn’t cover, and how decisions are