This article is by Peer Jelendorf, CEO of Smart Money People
The claims experience has typically been considered the defining moment in a customer relationship. It is where promises are tested, emotions are heightened and processes are put to the test.
But that is no longer the only moment that matters.
Today, renewals are becoming just as critical to customer perception as the claims experience itself. In an environment shaped by rising premiums, economic pressure and increasing consumer scrutiny, renewal is increasingly the point at which customers decide whether their insurer truly delivers value. And if that answer is no, it’s often the time they take their business elsewhere.
The insurance industry has invested heavily in digital claims journeys, automation and customer experience improvements over the past decade. Yet many customers still encounter a renewal process that feels opaque, reactive and disconnected from the relationship insurers say they want to build. This is a problem that the insurance industry needs to tackle in order to demonstrate value to their customers.
At renewal, customers are not simply reviewing a price. They consider whether the cover still meets their needs, are they happy with the customer experience and whether the premium increase feels justified. Most importantly, they are deciding whether the insurer sees them as a long-term customer or merely another annual transaction.
The Smart Money People Q1 2016 UK Insurance Market Report found that customer sentiment has weakened significantly compared to 2025. Satisfaction, trust and perceptions of fairness have all declined. Notably, customers are now much more critical of the value they’re getting and whether products genuinely meet their needs. Experiences vary between providers, but the consistent declines across multiple metrics show that strong operational performance alone isn’t enough to maintain customer confidence.
The report, based on 39,801 verified customer reviews, shows that customers frequently comment that: ‘the only drawback is the ever-increasing cost’ or ‘loyalty should be rewarded’.
So, good service alone isn’t always enough for customers to feel valued or fairly treated. For insurers, this presents a real challenge. Even those performing well operationally can struggle to keep customer sentiment positive if pricing starts to feel unfair.
As a result, maintaining customer trust may increasingly depend on how effectively insurers communicate the value of their policies.
Why transparency matters
Consumers are experiencing price increases across almost every household expense, and insurance renewals are just one of many bills landing on doormats and in inboxes. Most customers understand, at least broadly, that price rises can be inevitable due to inflationary pressures and issues such as rising supply chain costs.
However, customers can still feel frustrated when premium increases arrive without clear explanation. In many cases, the frustration is driven less by the increase itself and more by the lack of transparency surrounding it. A customer receiving a significantly higher renewal quote without meaningful context can feel blindsided, even if the increase is commercially justified.
Renewal communications do not need to become technical underwriting documents. But they should clearly explain what has changed, why pricing may have shifted and what value the customer continues to receive from the policy. They should also make it easy for customers to ask questions and discuss alternative options where appropriate.
In many cases, consumers simply want to feel informed rather than processed. For example, a younger customer facing a modest premium adjustment may require a very different approach from a long-standing customer experiencing a substantial increase due to changing risk factors.
This is where the renewal experience increasingly mirrors the claims journey. During a claim, customers value clarity, responsiveness and empathy from their insurance provider. The same principles now apply to renewals. A customer who feels ignored or confused at renewal is unlikely to separate “service” from “pricing” when evaluating the insurer overall. They will simply conclude that the experience was poor.
That perception is becoming more visible through online customer reviews.
The power of customer reviews
Many insurers see spikes in negative reviews during renewal periods, particularly when premium increases are communicated poorly or customers struggle to contact support teams. Customers leaving negative reviews frequently cite issues such as unclear communications, difficulty understanding policy changes, long wait times and inconsistent information from support teams.
Renewal dissatisfaction also spreads quickly because renewals affect virtually every customer every year. Claims are relatively infrequent, but renewals are universal. That gives the renewal journey enormous influence over customer perception and retention.
The industry should view access to this feedback as an opportunity. Analysing data from independent customer reviews is an important first step in improving the renewal process. Understanding the customer pain points and then stress-testing how these can be fixed, is key.
And communicating that as a business, you have undertaken this process, that the organisation is listening and wants to improve, is a way to show an insurer is transparent and ultimately valuing the customer.
Insurers that continue to treat renewals as an administrative exercise risk missing one of the most influential moments in the customer lifecycle. Instead it is an opportunity to use the renewal period to engage customers, and strengthen trust and ultimately loyalty to the brand.
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