2025 Consumer Sentiment Report: Preferences for Insurance in a Digital World
Sure's 2025 Consumer Sentiment Report

Preferences for insurance in a digital world

The tale of a generational divide separating Digital Natives from Digital Immigrants
table of contents

What's inside

Diving into demographics

To better understand perceptions of the insurance industry as well as measure sentiment around purchasing insurance digitally, we partnered with Morning Consult to conduct a survey among U.S. adults.
In total, we surveyed 2,127 individuals across age, race, geography, insurance type, and much more to find out how American consumers feel about their current insurance options and where the most opportunity lies to better serve them – digitally.
Where appropriate, we dove deeper into the preferences separating Digital Natives (born in 1975 or after) from Digital Immigrants (born in 1974 or before).
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About the survey

The world of insurance is at a crossroads. As it stands today, only a small fraction of insurance transactions are truly digital – by some estimates, it’s only 1% globally. This means that a human is involved in the vast majority of insurance transactions, whether that means working directly with an agent, reviewing claims paperwork, or someone entering information to produce an insurance quote.
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To draw a comparison, this puts us at a similar point in time to the emergence of credit cards.
Prior to that innovation, almost all transactions occurred via cash or checks. However, there were a few innovators that made the bet that cashless transactions would be the future and would soon dominate commerce – and the evidence that they were right is all around us. In today’s world, it’s not uncommon for merchants of all types to operate fully cashless. Just as the marketplace of commerce shifted, the marketplace of insurance is now shifting – and Sure is the first mover to build the technology rails for this shift to digital insurance.
As we enter this pivotal moment, we wanted to measure how today’s consumers are thinking about their current insurance options, the emergence of digital insurance, and much more. We set out to better understand perceptions of the insurance industry among U.S. adults and uncover the appetite for digital insurance experiences.
This divide of preferences has huge implications for the insurance industry over the coming decade as Digital Natives overtake Digital Immigrants as the majority of the population. According to the U.S. Census Bureau, by 2035 Digital Natives will represent 72% of the overall U.S. population and 53% of adult consumers. By 2045 Digital Natives will balloon to 83% of the overall U.S. population and 65% of adult consumers.
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As more Digital Natives shop for insurance for the first time, their buying preferences are loud and clear – and they’re not looking for their grandparents’ way of purchasing insurance through human interaction. One half of Digital Native consumers say that they are more likely to purchase insurance online if the process requires less human interaction, while only one quarter of Digital Immigrants agree.
The results of our survey demonstrate that the appetite for digital insurance options is strong, as three in five Digital Natives say that they would switch providers if their current insurance provider didn’t offer digital options. What’s more, 64% of Digital Natives believe insurance should be primarily purchased and managed online in today's digital world. These are just a few of our findings. Let’s dig in.

Top takeaways

BRANDS BECOME INSURERS

65%

of all respondents who have purchased insurance online did so via the brand they made a separate purchase with (e.g., securing auto insurance while buying a car).

AUTO DOMINATES DIGITAL

76%

of all respondents who purchased insurance online said that it was for auto insurance, by far and away the most common type of coverage purchased digitally.

BROADER BRAND DISTRIBUTION

63%

of all respondents believe there should be more options to purchase insurance directly online from the brand (e.g., purchasing homeowners insurance online from your bank or lender).

CLAIMS CONUNDRUM

44%

of all respondents say that claim payout speed is ‘very important,’ while only 25% are ‘very satisfied’ with the speed of claims payouts provided by current insurance options.

DIGITAL NATIVES WANT DIGITAL INSURANCE

64%

of Digital Natives believe insurance should be primarily purchased and managed online in today’s digital world.

DIGITAL NATIVES PREFER DIGITAL

63%

of Digital Natives prefer to purchase insurance digitally and instantly confirmed.

part 1

Purchasing preferences

Digital on the rise as Digital Natives come of age
We asked respondents how they had purchased insurance within the last year or more. The majority of respondents reported that they had spoken to an agent either in-person or over the phone and were not instantly confirmed. With this being the traditional way of purchasing insurance for decades (if not centuries), this is not surprising, especially considering we are still so early in the transition to digital insurance experiences.
However, new digital insurance experiences are catching up with the outdated analog insurance experiences. At least half of all respondents indicated that they had engaged in an online digital insurance transaction within the last year or more either independently online or online with the support of a customer support representative if needed. What’s striking is the generational divide of those who have engaged in a digital insurance transaction versus those who have not.
Where consumers are
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Where consumers want to be
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Where consumers go digitally
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Part 1

Takeaways

Digital Natives prefer digital insurance over analog insurance
While all respondents were most likely to have purchased insurance by speaking to an agent in-person or over the phone, digital insurance transactions are catching up to analog insurance transactions, with half of all respondents reporting they had engaged in a digital insurance transaction in the last year or more.
Despite speaking to an agent being the most widely used insurance purchasing experience, it is the least preferred method. Only 43% of respondents prefer to speak to an agent while half of all respondents indicated they would prefer to do it online alone or online with the help of a customer support representative.
The preference to purchase insurance online is even more striking with younger consumers.
Digital Natives were twice more likely to say they prefer to purchase insurance online than speaking to an agent in-person or over the phone.
When consumers do purchase insurance online, they indicate a preference for streamlining the customer experience by eliminating the need to shop for insurance options externally. Of all respondents who purchased insurance digitally, almost half said they did so directly from the brand through a digital insurance experience.
Part 2

Factors to go digital

Convenience, efficiency, speed, and beyond
Of the 63% of survey respondents who have purchased insurance digitally, they shared what factors were most important to them to make the decision to go online. The results are not surprising given the frictionless experience of digital insurance. Convenience, efficiency, and speed were all highly cited as key drivers of their decision to purchase insurance digitally. Digital claims and policy management are also widely recognized as key differentiators as reasons to engage in digital insurance.
Digital Natives represent the majority of all respondents who have purchased insurance online, which isn’t all that surprising. However, what is surprising is that Digital Immigrants are starting to embrace digital.
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Part 2

Takeaways

Convenience, efficiency, and speed drive consumers towards digital insurance
Convenience over effort and efficiency over friction were among the most touted reasons for going digital, and it makes sense since those are the biggest hallmarks of what makes digital insurance better. The need for a more convenient process and the ability to access all information about policies in one place is a top consideration across the board, with 91% of respondents considering both factors important in the decision-making process.
Although the status quo has held that most insurance transactions take place with the help of human assistance, there is a clear interest in more autonomous ways to purchase insurance.
When making the decision to purchase insurance online, nearly seven out of ten of respondents consider it important that the process involves less human interaction.
Part 3

Converting the unengaged

Unlocking digital insurance for those who haven't jumped in
Of the 37% of respondents who reported not purchasing insurance digitally, we asked them what barriers are preventing them from doing so. It was not a lack of familiarity or comfort, and it was not because of a concern with switching providers. By far and away the biggest barrier was the desire to speak to an agent, with more than half reporting that was their preferred method of purchasing insurance.
Speaking to an agent was heavily skewed towards older consumers, with 66% of Digital Immigrants stating it was their preference to speak to an agent.
Despite the desire to speak to an insurance agent, more than half of all respondents said they would be open to purchasing insurance digitally in the future, with younger, Digital Natives far more enthusiastic than Digital Immigrants.
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Part 3

Takeaways

Non-adopters see the benefits of digital insurance
Seven out of ten respondents who have not purchased insurance online were Digital Immigrants, further reinforcing the generational divide of online versus offline insurance purchasing experiences. Digital Immigrants are just more comfortable with what they have always known.
Even for those that have not engaged in a digital insurance transaction, they intuitively understand that convenience and efficiency are the hallmarks of what make digital insurance better, and are cited as the most important factors when considering whether to purchase insurance digitally in the future.
Speed was also widely seen as a key differentiator to consider going digital in the future.
Part 4

Digital insurance satisfaction guaranteed

Both Digital Natives AND Digital Immigrants are overwhelmingly satisfied
For those who have engaged in digital insurance transactions, the experience has been overwhelmingly positive across all age groups. Naturally, younger, Digital Natives have a higher propensity to engage in digital insurance transactions and their experiences have been overwhelmingly positive.
What’s interesting is that for older, Digital Immigrants who have engaged in digital insurance transactions (albeit at a far less propensity), their experience is equally positive as Digital Natives.
Results also show the continued emergence of brands selling insurance directly to consumers through embedded insurance experiences. More than three fifths of respondents who have purchased insurance digitally, did so via the brand they made a purchase with.
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Part 4

Takeaways

Even Digital Immigrants find digital insurance highly satisfying
For respondents who have engaged in digital insurance transactions, the experience was overwhelmingly positive.
86% who purchased online on their own were satisfied with their experience and 84% who purchased online with the assistance if needed were also satisfied.
While Digital Immigrants have a far less propensity to purchase insurance digitally, for those that do embrace digital, their experience is overwhelmingly positive with over four out of five saying they were happy with their experience.
The results of our report demonstrate that older consumers aren't that different from younger consumers. While they lack a desire to go digital, they end up doing it anyway with a high rate of satisfaction. So as we move towards fully digital insurance experiences, they will come along even if they don't prefer it.
Part 5
Who's in the driver's seat?
There’s no doubt about it: digital may not necessarily be the clear cut now, but it certainly is the future of insurance. We asked respondents for their opinion on a variety of topics related to digital insurance, and the hunger for digital is clear – especially when looking at younger, Digital Natives.
Digital Natives grew up in a digital world and thus expect digital experiences for all matters of their lives. The problem is that insurance has been slow to keep pace with the preferences of Digital Natives, which is why they feel so strongly that the industry should shift its posture to be more focused on digital insurance experiences.
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Brands for the Win
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Part 5

Takeaways

Consumers want digital and they want it from the brands they trust
The generational divide was consistent across our survey, but none more so than when we asked opinions on various aspects of the status quo of insurance and what the future could be.
More than three out of five Digital Natives feel insurance should be primarily purchased and managed online in today’s digital world.
Sentiment among Digital Immigrants was less enthusiastic.
The insurance industry is arguably one of the very last industries to embrace digital transformation, and more than half of all Digital Natives agree. This is a threat to incumbents, as almost 60% of Digital Natives said they would consider switching providers if their current provider did not offer digital insurance experiences.
Respondents across all age groups agree that it is challenging to shop for insurance due to how complicated the process should be. This underscores the need for simplified experiences through digital insurance to make the process less complicated.

The future of insurance is digital

Skate to where the puck is going
The results of our survey are clear. The future of insurance is digital.
There’s an old saying in hockey: Don’t skate to where the puck is, skate to where the puck is going. As younger consumers come of age and more frequently purchase insurance, their preferences are to do so digitally. Companies that don’t adapt now to their digital preferences will be left behind as everyone else skates toward the digital puck.
The first mover advantage is real, and it gives those prescient enough to pursue it the mind share, resources, and learnings first. To recall the earlier example of the emergence of credit cards and cashless payments, we’ve seen the first mover advantage at work in Visa and MasterCard. Those companies had the foresight to adapt to buyers’ changing preferences for a seamless purchasing experience, and in the process, they revolutionized their industry as they connected the rails between merchants and banks to enable commerce.
The data is clear about which way the future of insurance is heading. While older consumers have traditionally purchased insurance in a way that required human interaction, younger consumers are just beginning to research and purchase insurance for the first time – and their preferences are clear. 64% of Digital Natives believe that insurance should be primarily purchased and managed online in today’s digital world. This group will define the next few decades of insurance, and those who don’t get on this train will be left behind as the market shifts to meet digital preferences.
In addition to changing preferences, external circumstances are already forcing insurers to reconsider how they produce and distribute insurance products. The combination of climate change and eye-popping premium increases over the last few years has exacerbated the core problem in the insurance market: the sheer challenge and complexity of bringing new insurance products to market rapidly and updating them once in market.
This, combined with the hurdles of launching insurance programs digitally, has kept the legacy players in the industry unable to adapt to the market quickly enough to serve consumers with the options they need – and the way they want to transact.
By establishing partnerships with insurance infrastructure companies, insurers can get ahead of this generational shift and external pressures to better serve consumers with the insurance products that they need, in the way that they prefer to purchase them. Their fate depends on it.
As more Digital Natives come of age, they will represent the bulk of U.S. purchasing power over the next two decades — and 3 out of five of them are open to switching providers if their current provider doesn’t offer digital insurance experiences. This means that if insurers aren’t willing to adapt, digital natives aren't afraid to take their business elsewhere.
What’s more, Digital Natives as well as Digital Immigrants won’t necessarily take their business directly to a carrier. As more and more brands have emerged as insurance providers, consumers have grown more eager to engage in insurance transactions with brands they already have a strong relationship with. 63% of all respondents believe there should be more options to purchase insurance directly online from the brand (e.g., purchasing homeowners insurance digitally from their bank or lender). What’s more, 65% would be more interested in purchasing insurance online from a brand that’s underwritten by a reputable insurance provider than they would be going to find insurance independently. This further reinforces the power of partnerships between brands, carriers, and insurance infrastructure providers in today’s digital insurance world.
Today, everything is already online – but this hasn’t been the case for insurance. Consumers have become accustomed to buying almost everything online and autonomously, but insurers have not adapted to the desire for this convenience. But with independent players building the technology rails of digital insurance and brands emerging as trusted insurance providers, everything works better. Transactions happen more quickly, and consumers are able to secure the coverage they need, in the way that they prefer to purchase it – quickly and seamlessly. For their own survival, legacy insurers had better open their eyes to see where the puck is going and skate towards it.

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