UK insurance customers are growing more critical of the value and service they receive from their providers, according to new findings from Smart Money People, the UK's most comprehensive financial services review site.
The Q2 2026 UK Insurance Market Report, based on verified customer reviews submitted across home, travel, pet, vehicle, health, life, specialist and business insurance products, shows that customer sentiment weakened further during the quarter, with satisfaction, advocacy and perceptions of fairness all declining compared with Q1.
Overall satisfaction fell from 3.27 to 3.02 out of 5. Net Promoter Score turned negative, dropping from +3.7 to -6.8, as promoters fell from 48% to 43% and detractors rose from 44% to 50%. Customer service ratings slipped from 3.20 to 2.98, value for money fell from 3.18 to 3.03, and ease of doing business dropped from 6.07 to 5.63.
Just 52% of customers said they felt fairly treated by their insurer, even though 81% said they understood their policy details. This is a gap that Smart Money People says is one of the clearest warning signs in the data, since customers who feel fairly treated are significantly more likely to recommend their provider, even after a difficult claim.
Customer advocacy under pressure
The biggest concern in the Q2 data is the reversal in customer advocacy. In Q1, promoters still outnumbered detractors. The results in Q2 flipped, pushing NPS into negative territory for the first time this year. Smart Money People's analysis points to unclear policy terms, poor communication, slow responses and frustration around renewals, cancellations and claims as the drivers behind the shift, alongside continued pressure on price.
Claims remain the moment that defines how customers feel about their insurer. The strongest reviews in Q2 describe experiences that are easy to navigate, clearly explained and low effort, while the weakest describe customers left to do the chasing themselves, particularly damaging when it coincides with a claim, cancellation or renewal increase.
Home insurance bucks the trend
Home insurance was the standout performer of the quarter and is the spotlight sector in this report. While the wider market declined, home insurance improved across every headline measure:
- Overall satisfaction up from 3.77 to 4.24
- NPS up from +28.2 to +52.3
- Promoters up from 57% to 72%; detractors down from 29% to 20%
- Customer service, value for money and ease of doing business all improved
- 91% understood their policy, 81% felt fairly treated, 84% said the product met their needs
Smart Money People says the home insurance sector's stronger performance reflects a combination of competitive pricing, straightforward policy management, clear communication and helpful service. Although claims handling remains the biggest source of frustration even within this sector.
Insurance Fairness Index
The report also tracks Smart Money People's Insurance Fairness Index, which combines policy understanding, perceptions of fair treatment, value for money and whether the product meets customer needs into a single benchmark. The wider market scored 60.0 in Q2, against 84.6 for home insurance, underlining the gap between the best and worst performing parts of the market.
Peer Jelendorf, CEO of Smart Money People, commented:
"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."
Smart Money People's Q2 2026 UK Insurance Market Report is available at www.smartmoneypeople.com/insurance-hub
