Slow Insurance Payouts Risk Policyholder Churn, InvoiceCloud Survey Finds

InvoiceCloud, a leading provider of online billing and digital payment solutions, today announced the findings of its second annual Consumer Claims Experiences Survey, revealing a top industry pain point for policyholders: the slow disbursement process. Of those surveyed, only 15% of consumers report receiving a payout within a week of their claim, followed by 25% who received payment one-to-several weeks later. The survey data indicates this payout pace could have negative impact on insurer retention rates.

The modern consumer is accustomed to instant gratification in their day-to-day life, fueled by the digital era of in-app shopping and next-day shipping, payment apps making it easier for friends to split the bill, and contactless food delivery at their fingertips. A slow claims process falls short of that expectation, and 75% of consumers surveyed say they are very likely to switch carriers as a result.

“Filing a claim is stressful enough. Slow payments make it worse,” said Kevin O’Brien, CEO at InvoiceCloud.

“Consumers want speed and reliability. Real-time digital payments give carriers a way to earn trust in the moment it matters most,” said Kevin O’Brien, CEO at InvoiceCloud.

Communication plays an important role in the relationship between a provider and policyholder as well. Based on InvoiceCloud’s survey data, many consumers still prefer conventional communication during the claims process; phone tops the list (38%), followed by email (36%). The generations are divided at each end on the form of communication: Baby Boomers (51%) and Gen Z (39%) prefer phone, while Gen X (43%) and Millennials (37%) opt for email.

Other notable findings from the 2026 Consumer Claims Experiences Survey include:

• Auto Claims Top the List: The most commonly filed claims remained consistent year over year, with auto collisions (19%) leading the list, followed by water damage (13%), and wind/hail damage (12%). Among Millennials and Gen Z, personal injury claims also rank among the top three.
• Paper Checks Are Out: As paper checks continue to phase out, direct deposit is the preferred claims payment method for more than half of consumers (52%). In a digital-first economy, Gen Z selects digital wallets in their top three, driving the same demand from last year’s survey. J.D. Power's 2026 U.S. Property Claims Satisfaction Study reinforces the trend, finding that customers who use digital tools at each stage of a claim, from filing to funds, report consistently higher satisfaction than those who don't.
• Take the Funds Online: When consumers need access to funds in an emergency, online banking reigns supreme (50%). Only 18% prefer to make a cash withdrawal from the bank.

“InvoiceCloud's data confirms that the “Amazon effect” is firmly embedded in customers’ expectations of their insurance company. When three out of four policyholders say a slow claims process would send them to a competitor, and more than half already prefer direct deposit over a check, carriers cannot afford to treat disbursement modernization as a back-office initiative. Speed and channel choice are now retention levers. The carriers that recognize that — and act on it — will have a measurable advantage,” said Meredith Barnes-Cook, Senior Principal at Datos Insights.