UK insurance sentiment falls as claims service worsens
Poor claims service has driven UK insurance sentiment into the red, sending the industry’s net promoter score (NPS) down to -6.8 in the second quarter of 2026.
Consumers focus on service, not price
The drop reflects growing dissatisfaction with how companies handle claims, according to the latest UK Insurance Market report from Smart Money People.
The score marks a significant decline from the first quarter, which was already down compared to the largely positive results of 2025.
NPS scores of below 0 highlight an overall negative sentiment towards a subject, similar to how political approval scores work.
The industry’s -6.8 score suggests that for many policyholders, the experience of dealing with insurers is no longer about getting the cheapest quote, but rather about reliability when issues arise.
Customers are increasingly frustrated when they have to chase for updates or do the work themselves, rather than receiving the support they expect.
This shift in focus is changing how insurers must approach their business models.
More tellingly, the number of customers reporting that they “understood their product details” fell by over 10% to 80.7%, while Smart Money People’s proprietary Insurance Fairness Index fell between quarters from 84.6 out of 100 to just 60.
Peer Jelendorf, chief executive at Smart Money People, suggested that the strong customer satisfaction scores were the result of a combination of competitive pricing, easy policy management, clear information and helpful service.
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This approach appears to be working for policyholders, particularly regarding online journeys and staff interactions.
The report notes that getting the fundamentals right—clear communication and fair pricing—can significantly improve customer confidence.
For the rest of the market, the data suggests that understanding a policy isn’t the same as trusting the provider behind it.
Home insurers buck the trend
While the wider market struggles, home insurance providers saw their performances improve across a variety of metrics.
Overall satisfaction rose from 3.77 out of 5 to 4.24 out of 5, while NPS increased from +28.2 to +52.3.
The strong sentiments were backed up by customer outcome measures, with 91% of surveyees saying they understood their product details and a further 81% saying they felt fairly treated by their insurance providers.
Jelendorf concluded: “Home insurance shows what’s possible when providers get the fundamentals right – clear communication, fair pricing and helpful service that fills customers with confidence rather than leaving them facing delays and feeling frustrated. The rest of the market has a clear blueprint to follow.”
For insurers, the message from Q2 is understanding a policy isn’t the same as trusting the provider behind it. Closing that gap should be the priority for the second half of the year.
