Insurance customers are becoming increasingly unwilling to tolerate delays in claims settlement and payouts, according to a study by InvoiceCloud. The study found that 75% of U.S. property and casualty policyholders are likely to leave their insurer following a poor claims experience, highlighting how claims service has become a major factor in customer retention. Among respondents who had previously filed a property and casualty claim, 25% waited more than a week for payment, while only 9% received their payment within two days.
Speed and communication emerged as two of the most important areas for improvement. 30% of respondents said faster payment was the change they most wanted, while 22% wanted clearer and more consistent communication about payment status. Among customers willing to switch insurers following a poor claims experience, 44% said they were likely to switch and 31% said they were very likely to do so. The findings reflect changing customer expectations shaped by on-demand digital services, particularly among younger consumers who increasingly expect insurance interactions to be simple, fast and transparent.
The study also highlights the potential of digital claims payouts, with 52% of respondents preferring direct deposit into a bank account. Digital payments can reduce delays associated with paper cheques, including lost payments, manual reversals and repeated customer enquiries. However, the study stresses that choice remains important because some customers continue to prefer traditional payment methods. For insurers, the wider lesson is that claims settlement is not simply an operational function but a critical customer-experience and retention risk, making speed, transparency, communication and payment flexibility important components of claims management.
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