Mumbai: Hansa Research has released the 6th edition of its Life Insurance Customer Experience Score (CuES) 2026 report, highlighting a growing challenge for insurers in delivering customer delight despite stable experience ratings.
Based on feedback from over 3,500 customers across 12 life insurance brands, the report indicates that while operational consistency has improved, brand connect is weakening and the ability to create “delight” moments is declining. This has resulted in reduced customer advocacy and a convergence in brand perceptions.
A key concern flagged in the report is the rise of ‘Delight Dilution’, where insurers are able to maintain satisfaction levels but struggle to convert them into strong recommendations. Nearly 30% of customers fall into the ‘passive’ category—satisfied but unlikely to actively endorse their insurer—pointing to latent engagement risks.
The report attributes this trend to limited differentiation in core brand values, plateauing experience satisfaction, channel-driven gaps (especially in agency-led models), and rising customer expectations shaped by best-in-class experiences across industries. It also notes that digital capabilities are now a basic requirement rather than a competitive advantage.
Sharing insights, Praveen Nijhara, CEO, Hansa Research, said, “Most life insurance companies have made significant strides in improving operational performance over the past few years, but experience delivery has now stabilized, with limited headroom for further driving ‘customer delight’. The industry is maintaining consistency but not elevating quality of experience, giving way to mere satisfaction with the brand. In this environment, brands are beginning to blend, reducing their ability to stand out and therefore driving convergence in customer perceptions. Loyalty will now increasingly depend on building more relevant and personal connections with customers through physical & digital platforms and customized service initiatives”
Piyali Chatterjee, Executive Vice President, CX, Hansa Research, said, “With customer experience gaps becoming increasingly structural in the sector, segmented strategies based on an understanding of underlying drivers are becoming more critical. We now see the advent of Gen Z into the life insurance space, and they are emerging as the most critical and most demanding segment, with expectations that outpace both Millennials and older cohorts. Their preferences are shifting toward more seamless, transparent, and self-directed experiences. At the same time, we see some commonalities in this younger cohort as well. Both Gen Z and Millennials display lower advocacy, especially those acquired via the agency channel. The agency channel, in particular, is emerging as a ‘passive trap’, reflecting gaps in experience ownership and changing customer expectations. Going forward, insurers must recognize that one-size-fits-all strategies will no longer work across customer segments.”
Brand Performance Highlights
Axis Max Life Insurance emerged as the industry leader with an NPS of 61, driven by strong performance across key touchpoints including onboarding, renewals, and customer communication, along with robust perceptions around claims, innovation, and digital capabilities.
Kotak Life Insurance ranked second with an NPS of 60, reflecting consistent performance and strong advocacy levels.
HDFC Life, ICICI Prudential Life Insurance, and Tata AIA Life Insurance jointly secured the third position among top performers.
Ageas Federal Life Insurance also entered the top 10 rankings based on customer experience.
In contrast, Life Insurance Corporation of India recorded the sharpest decline in customer advocacy, with its NPS dropping by 10 points year-on-year, widening the gap with private sector competitors.
Key Trends Shaping the Sector
The report underscores the need for insurers to adopt more segmented and nuanced strategies, recognizing differences across age groups, income segments, and geographies.
It highlights that Gen Z customers have higher expectations around transparency, personalization, and seamless digital journeys, while premium customers demand more proactive and tailored engagement. Meanwhile, non-metro markets continue to rely heavily on agents and physical channels, with inconsistencies in service delivery.
The agency channel, while still critical, is increasingly seen as an ‘engagement bottleneck’, with limited post-sale interaction and weak ongoing brand connection.
The Road Ahead
As the industry evolves, the report concludes that insurers must move beyond delivering consistent service to creating meaningful, emotionally resonant experiences. The focus will need to shift towards building deeper, personalized relationships that can convert customer satisfaction into sustained advocacy
