J.D. Power Study Reveals Key Drivers of U.S. Life Insurance Customer Satisfaction

Customer satisfaction with individual life insurance providers in the U.S. has remained stable in 2025, but significant differences exist between brands. The J.D. Power study highlights a 118-point satisfaction gap on a 1,000-point scale between the highest and lowest scoring insurers. Roughly 70% of insurers experienced notable changes in satisfaction scores compared to last year, driven largely by variations in relationship management and purchasing channels.

Direct-to-consumer sales channels report higher customer satisfaction, averaging 696 points, which is 57 points above satisfaction for purchases made through agents, brokers, or financial advisors. Digital platforms such as carriers’ websites and apps lead in digital experience, problem resolution, and perceived value for price.

Interactions through agents and advisors vary widely, with over half of these partnerships either disengaged or purely transactional. Only 19% of customers experience trusted advisor relationships marked by regular communication and best practices adherence, which correlate with satisfaction scores as high as 795 points.

The deployment of digital tools for claims filing and communications is increasingly important, especially among younger demographics like Gen Z and Millennials who prefer managing policies through apps. Older policyholders tend to favor traditional communication methods, indicating the need for insurers to maintain multiple service options tailored to customer preferences.

Regular, personalized communication contributes significantly to customer satisfaction, with engaged policyholders reporting scores 50 points higher than those without recent contact. Personalized interactions have a stronger impact than generic account updates or product offers.

Premium price increases are affecting customer loyalty, particularly in the homeowners insurance sector where 43% of customers considering non-renewal cite rising premiums as the primary reason. This trend underscores the role of transparent communications and perceived value in retaining policyholders amid market pressure on pricing.