US Life Insurance Customer Trust Declines in 2026

A new JD Power study reveals a drop in trust satisfaction scores among policyholders across the United States.

Updated on Oct. 25, 2026 in Insurance

Isometric editorial illustration featuring a vintage brass compass with a broken needle, symbolizing declining consumer trust in financial services. — Customer trust in US life insurance providers dropped by 9 points in 2026, according to the annual JD Power individual insurance study. AI Illustration. Upload story photo >

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Do you feel your insurance provider offers reliable and easy-to-use communication across all channels?

The 2026 JD Power Individual Life Insurance Study shows that customer trust scores for US providers fell by 9 points compared to the previous year. Overall customer satisfaction now sits at 649 on a 1,000-point scale, marking a 1-point decline from 2025 levels.

Why it matters

Insurers are shifting from transactional relationships to long-term engagement models that require consistent service across digital and traditional channels. Policyholders increasingly demand seamless coordination and personalized communication to maintain faith in their providers.

Nationwide leads the industry with a satisfaction score of 701, followed by State Farm at 692 and Mutual of Omaha at 680. The broader market reported $4.7 billion in new annualized with excess premium during Q2 2026.

The players

Nationwide

Nationwide is a major US insurance and financial services company that ranked highest in customer satisfaction in the 2026 study.

State Farm

State Farm is a large mutual insurance company that provides a variety of financial products and ranked second in the recent industry study.

Mutual of Omaha

Mutual of Omaha is a provider of insurance and financial services products that ranked third in the 2026 JD Power assessment.

The details

Customers who engage through advisors, agents, mobile apps, and websites report a significantly higher trust score of 757, compared to a score of 581 for those with no interaction. A single negative customer experience is associated with a 96-point drop in trust, while those with poor or fair credit scores reported a 28-point decline in trust satisfaction.

July 2025 – July 2026: Survey period for the JD Power study.
Q2 2026: Period for reported US individual life insurance market growth.
2026: Year of the reported life insurance trust decline.

Market Dynamics

This decline in consumer trust highlights a structural shift as the insurance sector moves away from legacy transactional models toward integrated engagement. It reflects broader macroeconomic pressures on service reliability compared to the baseline established by the 2025 JD Power Individual Life Insurance Study.

Policyholders experiencing poor coordination between digital and human service channels may face increased difficulty in managing their coverage. The disparity in trust scores suggests that customers who actively engage through multiple platforms tend to have more reliable experiences with their providers.

The takeaway

Customers should prioritize providers that offer integrated service models to ensure consistent support across both digital and human channels. Maintaining open communication with your agent or insurer can help prevent the negative experiences that often drive significant declines in trust.