Why Property Insurers Are Losing Policyholders Despite High Billing Scores

Property and home insurance providers rank exceptionally high for their billing and payment execution, according to a research study published by PYMNTS Intelligence in collaboration with Paymentus. Yet, this operational proficiency masks a critical disconnect between what carriers believe they deliver and what policyholders actually experience. The findings reveal that nearly one in four policyholders are ready to switch providers, a figure that surges to roughly seven in 10 among Generation Z consumers. This widening chasm highlights a major operational risk for insurance executives focused strictly on traditional administrative metrics.

The Service Commerce Performance Gap

Entitled The Service Commerce Performance Gap: Insurance Providers Playbook, the report evaluates responses gathered from March 2026 surveys involving 686 U.S. property and home insurance bill payers alongside 60 industry providers. While insurers frequently grade themselves highly on foundational tasks such as timely bill delivery and accurate statement generation, policyholders face friction during non-standard interactions. Carriers continue to allocate half of their investment budgets toward bill delivery mechanisms that already function smoothly, ignoring areas that generate heavy consumer dissatisfaction.

Disconnection Over Refunds and Disputes

The research uncovers stark misalignments regarding specific transaction friction points. For instance, 15% of policyholders report that refunds are entirely too slow, whereas a mere 1.7% of insurers acknowledge any delay. Similarly, unresolved billing disputes drag on without adequate attention. This administrative lag translates directly into measurable cash flow disruption. Approximately 18% of policyholders intentionally delay premium payments due to general dissatisfaction with their carrier, placing nearly $2.6 billion in monthly premiums significantly behind schedule.

Misallocated Budgets and Retention Risks

Carrier investment strategies continue to miss consumer priorities. While half of all insurance providers focus their capital on invoice delivery, only 6.7% invest in expanding payment methods, even though 44% of policyholders state that payment flexibility directly influences their choice of provider. Furthermore, only 44% of surveyed consumers feel that the billing experience strengthens their relationship with their carrier. Although over 70% of insurers closely track late payments and billing disputes, fewer than one in five possess the granular data necessary to explain why policyholders ultimately decide to leave.

• Property insurers achieve top billing scores but face high policyholder churn rates.
• Slow refunds and limited payment options frustrate millions of consumers.
• Delayed payments tie up billions of dollars in monthly insurance premiums.

Source: PYMNTS