Customer trust in US life insurance providers declined in 2026, with the sharpest deterioration among Generation Z and financially vulnerable consumers, according to the JD Power Individual Life Insurance Study.
Overall customer satisfaction remained relatively stable at 649 on a 1,000-point scale, down just 1 point from 2025. Trust satisfaction, however, fell 9 points, indicating growing difficulties for insurers seeking to maintain long-term customer relationships.
The findings reflect changing expectations as life insurance moves beyond a largely transactional purchase toward ongoing engagement. Younger policyholders increasingly expect personalized communication and consistent service across digital and traditional channels.
Key highlights
- Overall life insurance customer satisfaction declined 1 point to 649, while trust satisfaction fell 9 points, including a 39-point decline among Gen Z customers.
- A single negative experience reduced trust satisfaction by 96 points, while customers reporting seamless interactions across digital and personal channels recorded substantially higher trust scores.
- Nationwide ranked highest among US individual life insurers with 701 points, followed by State Farm at 692 and Mutual of Omaha at 680.
“Life insurance has really moved from a transactional relationship to a long-term relationship, and while many providers are succeeding at building engagement through increased use of digital channels and more frequent communications, others are struggling to forge those meaningful connections that really stick with customers,” said Meaghan Hafner, senior director of health & life solutions at JD Power.
Customers who say their providers offer seamless interaction across multiple channels are driving the highest levels of overall satisfaction, trust and advocacy (see Why Millennials Buying Life Insurance? Top Reasons).
Life insurance trust falls sharply among younger consumers
The decline in trust was particularly pronounced among Gen Z policyholders, whose trust satisfaction scores fell 39 points year over year.
Customers with poor or fair credit scores also reported a substantial deterioration, with trust satisfaction declining 28 points.
The study found that individual negative experiences can have a considerable effect on customer relationships. Difficulty contacting a representative, unexpected fee changes or reductions in service and support were associated with a 96-point decline in overall trust satisfaction (see US Life Insurers Face Rising Investment Risks).
The results suggest that maintaining trust depends on consistent service throughout the policyholder relationship, rather than customer satisfaction at the point of purchase alone.
US life insurance customer satisfaction and trust trends
| Customer satisfaction metric | Year-over-year change |
| Overall customer satisfaction | -1 point |
| Overall trust satisfaction | -9 points |
| Gen Z trust satisfaction | -39 points |
| Trust among customers with poor or fair credit | -28 points |
| Trust following a negative customer experience | -96 points |
Digital and personal interactions improve customer trust
JD Power found substantial differences in trust satisfaction depending on how customers interact with their life insurance providers.
Customers engaging through advisors, agents, mobile applications and websites recorded the highest trust satisfaction score at 757. Those reporting no interaction with their provider had the lowest score at 581.
Policyholders who strongly agreed that their insurer provided seamless interactions across digital, telephone and in-person channels recorded trust scores 148 points higher than customers who only somewhat agreed that those interactions were coordinated.
The quality of coordination between service channels also influenced customer perceptions. The US individual life insurance market delivered another growth quarter in Q2 2026, as total new annualized with excess premium reached $4.7 bn.
The findings indicate that communication frequency and consistency across channels are associated with stronger trust, satisfaction and customer advocacy.
Direct-to-consumer life insurance satisfaction declines
Customer satisfaction also varied according to how individual life insurance policies were distributed.
Satisfaction with centrally distributed policies declined 12 points to 684 in 2026. This category includes policies purchased directly through a provider’s call center or website, as well as through banks and third-party websites.
By comparison, satisfaction with policies sold through agents, brokers, agencies and financial advisors increased 6 points to 645 (see 7 Simple Steps How to Buy Life Insurance Policy).
Although centrally distributed policies continued to receive higher overall satisfaction scores, the year-over-year trends moved in opposite directions.
Life insurance customer engagement and distribution satisfaction
| Customer experience category | Satisfaction score |
| Trust among customers interacting through multiple channels | 757 |
| Trust among customers reporting no interaction | 581 |
| Centrally distributed life insurance policies | 684 |
| Agent-, broker- and advisor-distributed policies | 645 |
Customers who strongly agreed that their insurer provided seamless cross-channel interactions recorded trust satisfaction scores 148 points higher than those who somewhat agreed.
The results point to differences in the customer experience across distribution models as insurers seek to strengthen ongoing engagement and improve communication.
Top US life insurance companies by customer satisfaction
| Rank | Life insurance company | Satisfaction score |
|---|---|---|
| 1 | Nationwide | 701 |
| 2 | State Farm | 692 |
| 3 | Mutual of Omaha | 680 |
| Industry average | 649 |
Nationwide ranked highest among individual life insurance providers in the 2026 study, achieving an overall customer satisfaction score of 701 points. State Farm placed second with 692 points, followed by Mutual of Omaha in third position with 680.
The JD Power U.S. Individual Life Insurance Study evaluates customer experiences at the largest individual life insurance companies in the United States across eight dimensions, ranked in order of importance: trust, value for price, ease of doing business, people, product offerings, ability to get service, problem resolution and digital channels.
The 2026 study was based on responses from 6,145 individual life insurance customers surveyed between July 2025 and July 2026.
Trust remains the study’s most important evaluation dimension, with the latest results showing that insurers’ ability to provide reliable, coordinated service across customer touchpoints is closely associated with policyholder satisfaction.
What is the average life insurance customer satisfaction score in 2026?
Overall customer satisfaction with US individual life insurance providers reached 649 out of 1,000 points in 2026, according to JD Power. This represents a 1-point decline from 2025. Although overall satisfaction remained relatively stable, trust satisfaction declined by 9 points, indicating weaker customer confidence in insurers.
Why is trust declining among younger life insurance customers?
Trust satisfaction among Gen Z life insurance customers declined by 39 points year over year, substantially more than the overall 9-point decrease. JD Power identified changing expectations around communication, personalization and coordinated service across digital and traditional channels as important factors in insurer relationships. The study did not attribute the Gen Z decline to a single cause.
How does financial vulnerability affect life insurance customer trust?
Customers with poor or fair credit scores reported a 28-point decline in trust satisfaction in 2026. This was considerably greater than the overall decline. The findings indicate that financially vulnerable policyholders experienced a sharper deterioration in trust, although the study did not establish that their credit circumstances directly caused the decrease.
How do negative customer experiences affect trust in life insurance companies?
A single negative experience with a life insurance provider was associated with a 96-point reduction in trust satisfaction. Examples include difficulty contacting a representative, unexpected changes in fees and reductions in service or support. These findings demonstrate the sensitivity of customer trust to service problems during an ongoing insurance relationship.
Does digital engagement improve life insurance customer satisfaction?
JD Power found that trust satisfaction reached 757 among customers interacting through advisors, agents, mobile applications and websites, compared with 581 among customers reporting no interaction. Customers who strongly agreed that their insurer offered coordinated digital, telephone and in-person experiences also recorded trust scores 148 points higher than those who only somewhat agreed. The results establish an association between coordinated engagement and higher trust.
Are customers more satisfied with direct-to-consumer life insurance or policies sold through agents?
Centrally distributed life insurance policies recorded a satisfaction score of 684 in 2026, compared with 645 for policies distributed through agents, brokers, agencies and financial advisors. The trends differed, however. Satisfaction with centrally distributed policies declined 12 points, while satisfaction with intermediary-distributed policies increased 6 points year over year.
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AUTHOR: Nataly Kramer – Lead Insurance Editor at Beinsure
