Life Insurance Trust Scores Fell in 2026
A new JD Power study reveals a decline in customer satisfaction and trust across the U.S. life insurance industry.
Updated on Oct. 13, 2026 in Insurance
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The 2026 JD Power U.S. Individual Life Insurance Study recorded a 9-point decline in industry-wide trust satisfaction among policyholders. This retrospective data reflects responses from 6,145 customers collected between July 2025 and July 2026.
Why it matters
The drop in trust is driven by fragmented communication and siloed interactions, which are notably impacting younger clients and those with lower credit scores. Because a single negative experience can slash trust satisfaction by 96 points, providers face significant pressure to improve their service models.
Overall industry customer satisfaction scored 649 on a 1,000-point scale, while policies sold through distributors averaged 645. Nationwide led the rankings with a score of 701, followed by State Farm at 692 and Mutual of Omaha at 680.
The players
JD Power
This global data analytics and consumer intelligence company provides insights into customer satisfaction and product quality across various industries.
Nationwide
This American insurance and financial services group provides a wide range of insurance products including life, auto, and home policies.
State Farm
This major group of mutual insurance companies is one of the largest providers of individual life and property insurance in the United States.
Mutual of Omaha
This mutual insurance and financial services company specializes in life insurance, Medicare supplement insurance, and annuities.
The details
The study measured eight dimensions of service, including value for price, digital channels, and product offerings. Findings indicate that customers who had no interaction with their provider reported lower trust scores of 581, compared to those with more engaged service experiences.
Timeline
Survey data was collected from July 2025 through July 2026.
The findings were released as part of the 2026 study.
Market Dynamics
The 2026 JD Power U.S. Individual Life Insurance Study marks a departure from historical service benchmarks by highlighting the specific vulnerability of Gen Z policyholders to fragmented communication. This trend underscores a structural struggle within the industry to modernize service models and maintain loyalty as digital expectations evolve.
Policyholders should be aware that inconsistent communication or negative service interactions are directly linked to lower satisfaction, potentially signaling a need to re-evaluate their provider. Consumers who prioritize seamless interaction may find higher satisfaction with top-ranked firms like Nationwide or State Farm.
The takeaway
Customers should prioritize providers that offer consistent digital or human interactions to avoid the sharp trust penalties associated with fragmented service. Assessing a provider's performance on ease of doing business and problem resolution can help ensure a more stable long-term relationship.
Further reading
For additional context on current coverage trends, explore the Insurance section of the site.
Source note: This article includes information reported by InvestmentNews.
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