Insurity, a leading provider of cloud-based software for insurance carriers, brokers, and MGAs, announced new findings from its 2025 Digital Experience Index, a national survey measuring consumer sentiment around digital interactions with P&C insurers.

According to the data, 28% of Gen Z and 21% of Millennials report having switched insurers due to a frustrating online or mobile experience, making digital performance a key driver of brand loyalty for younger policyholders. This survey exposes a troubling disconnect: a significant portion of younger consumers are actively avoiding critical insurance functions, with 26% of Gen Z and 21% of Millennials shunning claims altogether because digital processes are too cumbersome.

Far from just a usability issue, this is a threat to the very relationship insurers believe they’re building. “Younger generations aren't just digital natives; they are the ultimate test of your technological credibility,” said Sylvester Mathis, Chief Revenue and Insurance Officer at Insurity. “If your online portal or claims app isn’t intuitive, fast, and responsive, you're risking not just user frustration but their trust and their loyalty. In a world where convenience is king, failing to meet these expectations isn't just poor service; it's a strategic vulnerability.”

Meanwhile, 61% of Millennials and nearly half of Gen Z prefer paperless interactions. However, trust in automation remains fragile, as more than half of Gen Z will only trust fully automated insurance under certain conditions.

As these groups gain purchasing power, insurers that overlook the importance of intuitive, quick, and responsive digital platforms risk becoming irrelevant. The message is clear: in today’s digital age, insurance providers must innovate or face failure.