US Insurance Sector Faces Customer Satisfaction Challenges Across Major Segments

The State of Customer Satisfaction in the U.S. Insurance Market

The U.S. insurance industry has come a long way since its early roots in the 18th and 19th centuries. Today it is a massive and essential part of the country’s financial stability, operating mostly under state-level regulation and spanning everything from health and life to auto, home, and commercial policies. Large insurers oversee trillions in assets and provide the safety nets individuals and businesses rely on when life takes an unexpected turn.

Yet for all its importance, the industry continues to face notable pressure. Rising premiums, complex policy structures, and uneven access to coverage remain persistent concerns for both consumers and regulators. The latest customer satisfaction trends offer an illuminating look at where the industry stands and where it may be headed.

“Consumers are telling insurers exactly where they need to improve. The question is who will take the feedback seriously.”
Industry analyst

A Snapshot of Policyholder Sentiment

Recent findings from the 2022 to 2023 ACSI Insurance and Health Care Study highlight continuing challenges across several major lines.

Property and Casualty: Performance Under Pressure

Progressive, now the largest auto insurer in the country, has made some gains but still sits toward the lower end of customer satisfaction, posting a CSI score of 77. Farmers Insurance, long known for serving rural communities, followed with a 75. Chubb, despite its global footprint and significant assets, ranked lowest at 67, suggesting meaningful friction in the customer experience.

These numbers matter. P&C insurers often represent a customer’s most frequent point of contact outside health coverage. Claims handling, communication clarity, and digital usability are increasingly differentiating the winners from the strugglers.

“When a customer files a claim, they are often at their most vulnerable. Satisfaction is built or lost right there.”
Veteran claims executive

Life Insurance: Trusted but Tested

Life insurance exists to provide security at life’s most difficult moments. Even so, several major life carriers face reputational strain. Nationwide, once celebrated for breadth and diversification, scored low on satisfaction this cycle. Prudential, a major global player, showed slight improvement but still faces hurdles. MassMutual experienced a modest decline but maintains an influential presence in the sector.

Health Insurance: A Mixed but Improving Landscape

Health insurers interact with consumers more frequently than any other coverage type, and the customer experience reflects that intensity. The recent study shows:

• Centene improved by 4 percent, marking one of the most encouraging upward shifts in the entire report.

• Kaiser Permanente continues to hold steady satisfaction levels supported by its integrated care-insurance model despite ongoing regulatory pressures.

• Cigna saw slight improvements but remains on the lower end of rankings among major carriers.

At a Glance: Satisfaction Scores by Sector

What These Trends Mean for the Industry

From regulatory oversight to claims modernization, the insurance sector is navigating one of the most dynamic periods in its history. Customer expectations are rising and competition is intensifying. The companies that respond with transparency, smoother digital experiences, and clearer communication will be best positioned to thrive.

These satisfaction levels serve as a real-time indicator of where the market stands. They also highlight where insurers can proactively refine their strategies to better balance profitability with consumer protection, especially as economic pressures and regulatory changes continue to evolve.

The message from policyholders is clear. Improvement is not optional. It is an opportunity for insurers to rebuild trust, strengthen retention, and differentiate themselves in a sector where consumer loyalty cannot be taken for granted.