A recent study by the American Customer Satisfaction Index (ACSI) reveals that rising costs and changing customer expectations are impacting satisfaction levels in the insurance and mortgage industries. The survey, which covered four sectors—health insurance, life insurance, property and casualty (P/C) insurance, and mortgage lenders—showed that life insurance scored the highest, despite slipping 1 percent to a score of 78 (on a 0 to 100 scale).
Health insurance and P/C insurance ranked second and third with scores of 76 each, which is considered the average for the P/C industry. Mortgage lenders scored the lowest, with a 1 percent decline to 74.
The main takeaway across all sectors is that customers increasingly desire clarity, responsiveness, and human interaction from service providers.
Forrest Morgeson, Associate Professor of Marketing at Michigan State University and Research Director at ACSI, explained, “The true industry leaders are those who meet customers where they are and provide seamless digital solutions while maintaining the reassurance of human interaction, especially in critical moments.”
When focusing on the P/C sector, military-affiliated USAA and State Farm continue to lead in customer satisfaction. USAA saw a 2 percent increase in its score, reaching 85—6 points ahead of State Farm, which scored 79, despite a 1 percent decline.
Progressive made the largest year-over-year gain, climbing 3 percent to 78, joining American Family (unchanged) and Nationwide (up 1 percent) in a three-way tie.
However, Geico (down 3 percent to 75), Farmers (down 5 percent to 73), and Travelers (down 8 percent to 72) all suffered significant declines, although they still outperformed Farm Bureau, which finished last with a score of 71.
ACSI noted, “In a year marked by steep premium hikes, worsening storms, flooding, wildfires, and rapid technological transformation, customer experience metrics have declined across the board.”
Declining Customer Satisfaction:
Metrics such as claims processing speed (down 5 percent to 73), call center satisfaction (down 5 percent to 76), and agent courtesy (down 5 percent to 72) all showed considerable drops. The policy discount and rewards metric also declined by 3 percent to 74, while mobile app quality and reliability both slipped 2 percent to 81.
Table – P/C Insurance Customer Satisfaction Scores:
| Company | ACSI Score | Change (%) |
|---|---|---|
| USAA | 85 | +2% |
| State Farm | 79 | -1% |
| Progressive | 78 | +3% |
| American Family | 78 | 0% |
| Nationwide | 77 | +1% |
| Geico | 75 | -3% |
| Farmers | 73 | -5% |
| Travelers | 72 | -8% |
| Farm Bureau | 71 | 0% |