Insurity’s digital experience survey finds majority of Baby Boomers don’t want a full digital insurance process
As insurance companies continue to invest in digital transformation, its consumers are not sold on the business model, according to a survey completed by Insurity.
The 2025 Digital Experience Index survey found 59% of Baby Boomers and 39% of Gen X consumers would rather speak to a person than use a fully digital insurance process. It adds only 7% of Baby Boomers and 14% of Gen X see their ideal experience as completely self-service.
Twenty-eight percent of Baby Boomers said they avoid filing an insurance claim because of how frustrating or complicated the digital process is. It also found that 26% of Gen Z and 21% of Millennials have shunned claims because of the digital process.
“These are not minor usability complaints but are blockers to basic insurance functions,” said Sylvester Mathis, Insurity chief revenue and insurance officer, in the release. “When nearly a third of Boomers are skipping claims altogether, it’s a sign that digital strategy cannot come at the expense of accessibility.”
The survey also found that 28% of Gen X and 21% of Millennials report having switched insurers due to frustration with online or mobile experience. Insurity says this makes digital performance a key driver of brand loyalty for younger policyholders.
Previously released survey results found that 64% of overall consumers would consider switching insurers for a better digital experience.
The Insurity release adds that a hybrid model combining digital resources and human support is likely the clearest way to maintain trust and ensure policyholders receive the support they need.
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.
Former Insurance Commissioner Mike 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 failing to thoroughly explain why they disagreed with estimates policyholders were given.
OIC said it asked multiple insurance company vendors that develop and use photo software and 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 Repairers 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.
The Insurity release adds that a hybrid model combining digital resources and human support is likely the clearest way to maintain trust and ensure policyholders receive the support they need.
Images
Photo courtesy of AndreyPopov/iStock