Customer satisfaction in the life insurance sector may appear steady, but the latest J.D. Power 2025 U.S. Individual Life Insurance Study uncovers a growing divide between direct-to-consumer channels and traditional agent-led experiences.
For insurance professionals, the results serve as both a warning and an opportunity — clients are demanding more engagement, communication, and personalized value from their advisors.
According to J.D. Power, Mutual of Omaha ranked highest in overall satisfaction with a score of 707 out of 1,000, followed by State Farm (697) and Nationwide (695).
While these top carriers lead the field, volatility across the industry is increasing — with more than 70% of insurers experiencing double-digit changes in satisfaction scores compared to last year.
The study evaluated eight key areas of the customer experience, including trust, value for price, ease of doing business, customer service, and digital engagement — painting a clear picture of shifting expectations.
For the first time, customers buying policies directly from insurers — whether online, via mobile apps, or through call centers — reported significantly higher satisfaction than those purchasing through agents or advisors.
The average satisfaction score for direct buyers was 696, compared to 639 among clients using intermediaries.
J.D. Power attributes this gap to the rise of digital convenience — customers value speed, transparency, and effortless access to services.
“Consumers now expect insurance to work like their other digital services — fast, easy, and personalized,” said Craig Martin, Executive Director of Global Insurance Intelligence at J.D. Power. “Agents need to merge personal relationships with digital efficiency.”
The study revealed a concerning trend: 58% of clients describe their relationship with agents as disengaged or purely transactional.
43% haven’t heard from their agent in over three years.
15% say their only interaction was at the time of purchase.
Just 19% enjoy a “trusted relationship” with ongoing communication and proactive service.
Policyholders with trusted relationships scored 795 in satisfaction — a stark contrast to 542 among those who rarely hear from their agent. The data clearly shows that consistent, meaningful contact drives retention and loyalty.
Clients who received personalized contact from their insurer or advisor in the past year reported satisfaction levels 50 points higher on average. However, not all outreach is effective — generic reminders or automated messages don’t build trust.
Instead, customers respond best to value-driven touchpoints, such as:
Policy reviews and beneficiary updates
Check-ins around major life or financial milestones
Personalized advice on long-term planning
These conversations reinforce the agent’s expertise and strengthen emotional trust — the foundation of client loyalty.
As the study highlights, both carriers and agents must rethink their approach to customer engagement.
Stay connected year-round. Even short, regular check-ins help maintain trust.
Combine digital tools with a human touch. Use e-signatures, online portals, and automated reminders without losing personal warmth.
Showcase advisory value. Direct channels may win on speed, but agents can win on knowledge — from tax strategies to tailored policy planning.
Never assume loyalty. Today’s customers have options. A proactive, informed advisor remains a key differentiator in an increasingly digital market.
Burial Senior Insurance provides information and services related to burial insurance for senior citizens, including policy options and end-of-life support services.
Copyright © Burial Senior Insurance 2025. All Right Reserved.
