Twenty-two percent or one in five consumers have avoided filing an insurance claim because they found the digital interactions too frustrating or complicated, according to a 2025 Digital Experience Index national survey conducted by Insurity. 

The survey also found 64% of consumers would consider switching insurers for a better digital experience, a press release on the survey results says. It says the results reveal how poor interactions during the claims process can drive customers to competitors. 

“As insurers continue to advance their digital strategies in 2025 and beyond, prioritizing intuitive, user-centric digital experiences will strengthen retention and build long-term customer loyalty,” the release says. 

Consumers find poor claims experiences as a loss of trust and it reduces customer loyalty, the release says. 

“This insight comes when insurers are under increasing pressure to modernize core systems, enhance operational performance, and deliver greater value to policyholders,” the release says. “While many carriers have made significant progress in digital transformation, the findings make clear that technology investment must be paired with a strong emphasis on user experience.

Those investments may fail to deliver meaningful returns without intuitive, efficient, and responsive interactions, especially during critical moments like claims.”

Insurance companies should prioritize reducing friction in their digital infrastructure this year, Sylvester Mathis, Insurity chief insurance and chief revenue officer says in the release. 

“A clunky or disconnected claims process frustrates customers and risks sending them elsewhere,” Mathis says. “When someone avoids filing a claim, despite having coverage, it signals a fundamental breakdown in trust. If policyholders feel friction, uncertainty, or inflexibility, they’re less likely to file a claim, and far more likely to leave.”

The survey was conducted online in April with more than 1,000 adult participants randomly selected, the release says. It says participants were asked a series of 19 questions ranging from multiple choice to scale base. 

Collision repair businesses have expressed frustrations with the use of AI and photo estimating in the claims process in recent years. 

For example, in 2023 the Washington State Office of the Commissioner (OIC) asked for feedback on why auto and home insurance complaints had been on the rise since 2021. 

Kreidler said most of the complaints were about auto insurance carriers using photo estimating to produce very low repair estimates, not sending adjusters to conduct in-person damage inspections, and not thoroughly explaining why they disagreed with estimates policyholders were given.

OIC said it asked multiple insurance company vendors that develop and use photo software and artificial intelligence (AI) to create repair estimates to participate in the workshop. None of them responded to the request.

The OIC Consumer Advocacy Program received 467 complaints in April 2023, up from the historic average of 287 a month — a 63% increase.

During a workshop held by OIC in July 2023, the Washington Independent Collision Repairer’s Association (WICRA) questioned the office’s accountability.

According to WICRA’s survey data, only 6.9% of nearly 1,100 photo-based claims were paid in full by insurers without supplements and only 26 of them were accurate.

The survey was on photo estimating — its accuracy, the claims handling process, and the length of time from keys to keys. Questions were sent to more than 65 independent collision repair shops and 30 responded.

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