Home insurance has bucked a wider decline in customer sentiment towards UK insurers, according to Smart Money People.
The financial services review site’s UK Insurance Market Report found that overall satisfaction fell from 3.27 out of five in the first quarter of 2026 to 3.02 in the second.
Its Net Promoter Score dropped from +3.7 to -6.8, with the proportion of promoters falling from 48% to 43% and detractors rising from 44% to 50%.
The findings were based on verified customer reviews covering home, travel, pet, vehicle, health, life, specialist and business insurance products.
Customer service ratings declined from 3.20 to 2.98, while the score for value for money fell from 3.18 to 3.03. Ease of doing business dropped from 6.07 to 5.63.
Only 52% of customers said they felt fairly treated by their insurer, although 81% said they understood the details of their policy.
CLAIMS SHAPE CUSTOMER VIEWS
Smart Money People said unclear policy terms, poor communication, slow responses and difficulties involving renewals, cancellations and claims had contributed to the decline in customer advocacy. Continued pressure on prices was also a factor.
Claims remained a decisive part of the customer experience. The strongest reviews described claims processes that were easy to navigate, clearly explained and required little effort, while the weakest came from customers who felt they had been left to chase insurers themselves.
HOME INSURANCE IMPROVES
Home insurance improved across each of the report’s principal measures. Overall satisfaction rose from 3.77 to 4.24, while its Net Promoter Score increased from +28.2 to +52.3.
The proportion of promoters increased from 57% to 72%, while detractors fell from 29% to 20%. Customer service, value for money and ease of doing business also improved.
Among home insurance customers, 91% said they understood their policy, 81% felt fairly treated and 84% said the product met their needs.
Smart Money People attributed the sector’s performance to competitive pricing, straightforward policy management, clear communication and helpful customer service. Claims handling nevertheless remained its largest source of frustration.
The company’s Insurance Fairness Index, which combines policy understanding, fair treatment, value for money and whether products meet customers’ needs, gave the wider insurance market a score of 60.0 in the second quarter. Home insurance scored 84.6.
Peer Jelendorf, chief executive of Smart Money People, said: “Q2 confirms that customers are no longer judging their insurer on price alone. They want confidence that when something goes wrong, they’ll be treated fairly and supported without having to constantly chase for updates and end up doing the work themselves.
“Home insurance shows what’s possible when providers get the fundamentals right: clear communication, fair pricing and helpful service that fills customers with confidence rather than leaving them facing delays and feeling frustrated. The rest of the market has a clear blueprint to follow.
“For insurers, the message from Q2 is understanding a policy isn’t the same as trusting the provider behind it. Closing that gap should be the priority for the second half of the year.”
