Rebuilding trust through CX: the key to value in insurance

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 made without having to search through pages of fine print to get it. In fact, 50% of insurance customers believe digital channels do not currently provide clear information about insurance products, highlighting a significant opportunity for insurers to improve transparency in policy explanations and claims processes.  

This means rethinking how information is presented and communicated. Policy summaries written in plain language, accessible claims guides, and clear, up-front explanations of exclusions go a long way. Insurers can also help build confidence by being open about how claims are assessed, what timelines to expect, and what documentation is needed. 

Some insurers are starting to share high-level claims data and outcomes to help customers feel more informed and confident in their insurer’s fairness. Radical transparency like this doesn’t just reduce confusion, it actively builds credibility. 

2. Strike the right digital-human balance 

Digital tools have transformed insurance over the last few years and because of this, customers expect fast, convenient self-service. But when something goes wrong, or when a situation is emotional or complex, they still want to talk to a human. Especially during a claim, empathy matters. A chatbot can guide someone through uploading documents, but it can’t offer reassurance or answer nuanced questions about settlement terms. 

This is where insurers need to be deliberate by using digital tools to streamline simple tasks, like filing a claim or checking policy details, while also ensuring customers can easily connect with a human when needed. But just as importantly, empower frontline staff to resolve issues and show compassion, not just follow scripts. 

In addition, organisations need to ensure that the digital channels that they deploy for self-service are easy for prospects and customers to understand and navigate from their device of choice. A seamless, user-friendly experience – and again, one that provides an option to speak to a person if they have questions – enhances customer satisfaction and fosters long-term relationships.  

3. Communicate early, clearly, and personally 

During a claims process, silence can be stressful. Customers want to know what’s happening, and who they can contact if they have questions. Proactive communication is key, such as sending updates at every stage of a claim, using text or email reminders for document uploads, or offering real-time claim status through an app. The more personalised the communication, the better, as it is vital to follow a customer’s preferred contact methods or language. 

The aim should be to reduce anxiety, not add to it, so even a short update can go a long way in reassuring customers that they are of value. 

A turning point for trust 

Insurers have a choice to make. Continue business as usual and risk further erosion of trust, or embrace a CX strategy built around clarity, empathy, and active engagement. 

The good news? Many of the tools needed to make this shift, including plain language tools, AI-powered chat support and omnichannel platforms, are already available. What’s required now is a mindset change to view CX not as a cost centre, but as a core part of delivering the promise of insurance. 

Reestablishing trust in today’s insurance landscape demands more than simply correcting past mistakes. It requires insurers to demonstrate – consistently and credibly – that they are transparent in their operations, empathetic in their customer engagement, and fully committed to delivering meaningful value at the moments that matter most. 

Image provided by Smart Communications 

Francesca Kaye