In the end insurance is really a promise to pay when things go wrong. The issue is always about fair value of assets or losses. Covid BI legal cases proved that sticking points on losses, or policy wording, becomes a a cause worth fighting for sometimes. For insurers the need for solvency – and profits – long term has to be weighed against the issue of fair values, rapid claims settlement and premium pricing. Not easy.
Here’s the word from Smart Money People;
Insurance customers across the UK are becoming increasingly critical of the value and outcomes they receive from their providers, according to new findings from Smart Money People, the UK’s most comprehensive financial services review site.
The Q1 2026 UK Insurance Market Report, based on 39,801 verified customer reviews, reveals that customer sentiment has weakened significantly compared with 2025 – with satisfaction, trust and perceptions of fairness all declining
Overall satisfaction has dropped from 4.81 to 3.27 out of 5. Value for money, the area under most pressure, has fallen from 4.60 to 3.18. And the proportion of customers who feel they are being treated fairly has nearly halved, from 93.8% to just 55.7%. Price increases, particularly at renewal, are driving a growing share of complaints.
To understand what’s behind this shift, the report introduces a new industry benchmark – the Insurance Fairness Index. While satisfaction scores capture how customers feel, the index goes deeper, tracking the relationship between three things that matter most: whether customers understand what they’re buying, whether they feel they’re being treated fairly, and whether they’re getting good value for money.
The market-wide index score has dropped from 94.3 in 2025 to 63.3 in Q1 2026 – a fall of nearly a third. And it reveals a telling gap: customers’ understanding of their policies remains high at 85.2%, but that knowledge isn’t translating into confidence. People know what they’re paying for – they just don’t think it’s a fair deal.
CLAIMS PAIN
Claims handling remains the single biggest driver of customer feedback, accounting for two fifths (41.2%) of all reviews. A positive claims experience can still boost loyalty and generate strong recommendations. But when the outcome falls short of expectations, dissatisfaction is notably stronger than it was last year. Simply handling claims efficiently is no longer enough to keep customers on side.
Of all insurance sectors, pet insurance is among those feeling the pressure most acutely. Overall satisfaction has fallen from 4.35 to 2.71 out of 5, and customer advocacy has reversed dramatically – with significantly more detractors than promoters for the first time. Just 41.9% of pet insurance customers now feel they are being treated fairly, down from 81.4%. The sector’s Fairness Index score of 50.8 sits well below the market average of 63.3.
Peer Jelendorf, CEO of Smart Money People, commented: “What we’re seeing is a fundamental shift in how customers judge their insurance provider. It’s no longer just about whether a claim gets paid or a call gets answered – customers want to feel that the overall deal is fair.
“The Insurance Fairness Index shows that customers understand their policies, but that understanding is making them more critical, not less. They can see what they’re paying, and increasingly they’re asking whether the value matches up.
“For insurers, the message is clear: strong operations alone won’t hold the line on trust. The providers that communicate openly, explain their pricing, and show customers they’re getting a fair deal are the ones that will come out strongest.”
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