Rising costs and changing expectations are shaking up how customers feel about insurance and mortgage companies, according to a recent study by the American Customer Satisfaction Index (ACSI). The study looked at four industries: health insurance, life insurance, property and casualty insurance, and mortgage lenders.
Life insurance came out on top with a score of 78, though it dipped slightly by one point. Health insurance and property and casualty insurance tied with scores of 76, considered average for the P/C category, with P/C also dropping by one point while health remained steady. Mortgage lenders scored the lowest among the four, slipping one point to 74.
Customers are looking for clear answers, quick responses, and a personal touch. Forrest Morgeson, a marketing expert from Michigan State University who works with ACSI, highlighted the need for companies to combine easy digital services with real human interaction. He said this mix helps people feel supported and understood.
Within property and casualty insurance, USAA and State Farm lead in customer satisfaction. USAA, known for serving military families, improved by two points to score an impressive 85. State Farm, open to all customers, scored 79 but saw a small dip of one point. Progressive had the biggest jump in this group, rising three points to 78 and tying with American Family and Nationwide, who scored similarly or slightly better.
On the other hand, companies like Geico, Farmers, and Travelers saw noticeable drops in their scores. Farmers’ score fell five points to 73, Travelers dropped eight points to 72, while Geico lost three points, landing at 75. Farm Bureau finished last with a score of 71.
The ACSI report also noted that customer satisfaction took a bigger hit than the industries themselves, dropping more noticeably. Speed of claims processing, satisfaction with call centers, and how courteous agents were all down by five points. Rewards and discounts dropped three points, while mobile app quality and reliability slipped two points.
This study comes at a time when insurance and mortgage companies face rising prices and more frequent natural disasters like storms, floods, and wildfires. The results suggest companies need to do more to keep customers happy, balancing technology and personal service in a way that really connects.