Why Insurance Apps Aren't the Answer Your Clients Are Looking For

TL;DR:

• Insurance apps are not delivering what clients truly want, which is personalized service and human interaction.
• Clients value direct communication with a knowledgeable agent over using an app for their insurance needs.
• While insurance apps have their place, they should complement—not replace—real human interaction to drive client satisfaction.

Insurance apps have become the latest must-have for a lot of agencies, but are they really delivering what clients want? Despite the push to digitize everything, most insureds aren't as excited about your app or portal as you might think. While agencies rush to roll out the next big digital feature, clients are left wondering why they can't just speak to a real person who understands their needs. The truth is, insurance isn't just about transactions—it's about trust, relationships, and personalized service. 

The Rise of Insurance Apps: A Trend Agencies Can’t Ignore

In recent years, insurance apps have become a hallmark of a "modern" agency, promising efficiency and 24/7 access to policy details. The idea is simple: put everything your clients need in the palm of their hands, and they'll be happier, right? But while this trend has caught on like wildfire, people want their favorite social media apps, games or DoorDash, on their phone. Think about the last time you opened your Verizon or AT&T app.

The push for insurance apps stems from the belief that clients crave convenience above all else. Sure, the ability to file a claim or check policy information with a few taps might seem like a game-changer on paper. But in reality, the excitement around these digital tools often fades when clients are faced with real-life issues that can’t be solved by an app. The widespread adoption of these apps might make agencies feel more competitive, but it also risks creating a disconnect between what’s offered and what’s actually valued by the insured.

The industry has heavily invested in these apps, seeing them as a way to streamline operations and cut down on human interactions, assuming that clients would prefer to avoid phone calls or in-person meetings. This assumption might be leading agencies down the wrong path.

Why Insureds Aren’t as Interested in Insurance Apps as You Think

Here’s the reality: most insureds don’t care about your insurance apps as much as you do. While agencies are busy building and promoting the latest digital tools, many clients are left feeling disconnected and frustrated. The assumption that everyone wants to handle their insurance needs through an app is flawed and overlooks a key aspect of the insurance industry: the human touch.

Data shows that a significant number of clients still prefer direct communication with their agent. They want someone they can trust, someone who understands their unique circumstances, not just an impersonal app that treats them like another transaction. When agencies lean too heavily on insurance apps, they risk alienating clients who value personal interaction over digital convenience. 

Given the choice between chatting with a human or bot, an overwhelming 81% of consumers said they would wait to talk with a live agent.
Callvu 2024

The goal of introducing technology to any process is to make those processes simpler. And when clients are still struggling to find their policy documents or get in touch with an agent—the app isn't doing that. It's a facade of modernization. Clients might find themselves struggling with app interfaces or navigating automated responses when all they really want is to talk to someone who can help them solve their problem quickly and efficiently. Insurance apps, while well-intentioned, often fail to deliver the level of service that clients expect from their agency. Now imagine when their phone offloads your app because they haven’t used in 7 months and they can’t get back into it.

This disconnect between what agencies think clients want and what they actually value can lead to frustration on both sides. Clients end up feeling like they’re just a number, and agencies miss out on building the strong, trust-based relationships that are the cornerstone of long-term client loyalty.

The Pitfalls of Over-Investing in Insurance Apps

Pouring resources into insurance apps might seem like a forward-thinking strategy, but it can easily backfire if it comes at the expense of real client engagement. Many agencies have jumped on the digital bandwagon, convinced that having the latest app will set them apart. But here’s the problem: when you focus too much on tech, you risk overlooking what truly matters to your clients.

One major pitfall of over-investing in insurance apps is the potential for alienation. Not all clients are tech-savvy, and many—especially older generations—might find these apps more frustrating than helpful. When agencies push their clients to use an app that feels complicated or impersonal, they’re sending a message that convenience is more important than understanding and meeting individual needs.

Another issue is the distraction factor. Investing heavily in app development can draw attention and resources away from other critical areas, such as improving client service or innovating product offerings. Agencies might find themselves caught up in the race to develop the next "must-have" feature, losing sight of the core of their business—providing excellent, personalized service.

Insurance apps often create a false sense of accomplishment within agencies. Just because you have an app doesn’t mean your clients are using it, or that they find it valuable. Without real engagement, these digital tools become little more than expensive novelties. Agencies that rely too heavily on apps may end up with clients who feel neglected and undervalued, which can ultimately hurt retention and trust.

The bottom line? While insurance apps can play a role in your agency’s strategy, they shouldn’t replace the personal connections that keep clients loyal. An overemphasis on digital solutions risks turning your agency into just another faceless entity, rather than a trusted partner in your clients' lives. Something to consider is finding ways to enhance their experience, and finding out the clients preferred method of communication.

What Clients Really Want Instead of Insurance Apps

While insurance apps may offer a feeling of convenience, they often miss the mark when it comes to addressing what clients truly value: personalized service, clear communication, and quick resolutions. Agencies that pour all their energy into digital tools might be surprised to learn that clients aren't clamoring for the latest app update—they're looking for something far simpler and more meaningful.

At the end of the day, clients want to feel understood and prioritized. They don’t want to be funneled into a one-size-fits-all digital experience. Instead of focusing solely on insurance apps, agencies should be asking themselves how they can make their clients feel heard and respected. This means offering easy access to a knowledgeable agent who can provide personalized advice, not just pushing them to use an app that often leaves them with more questions than answers.

Another key aspect clients value is speed and efficiency—but not in the way insurance apps promise. They want their issues resolved quickly by someone who knows their history and can cut through the red tape. An app might allow clients to file a claim or check a policy, but it can’t offer the reassurance and expertise of a human conversation.

Finally, transparency and clear communication are critical. Clients appreciate straightforward information and a clear understanding of their coverage and options. An insurance app might give them access to documents, but it doesn’t replace the value of a direct, honest discussion with an agent who can explain things in plain language.

In short, while insurance apps have their place, they should be seen as tools that complement—not replace—real human interaction. Agencies that focus too much on digital solutions risk overlooking the very aspects of service that clients care about most. Rather than doubling down on tech, the real opportunity lies in enhancing personal connections and delivering the kind of service that keeps clients coming back.

Rethinking the Role of Insurance Apps in Your Agency

It’s time to reconsider how much emphasis your agency places on insurance apps. While they may seem like the future, the truth is they should only be a part of your overall strategy—not the whole game plan. Agencies that put too much focus on these digital tools risk missing out on what really drives client satisfaction: the personal connections and trust that come from genuine interaction.

Instead of viewing insurance apps as a cure-all, consider them as one piece of a broader approach. Your clients are looking for a partner who understands their needs, not just another app that offers generic solutions. The value of your agency lies in the relationships you build, not in how many features your app has. By prioritizing human connections over technology, you can differentiate your agency in ways that an app simply can’t.

This doesn’t mean you should abandon digital tools altogether—they can be useful for certain tasks and client segments. But before you invest more time and resources into your app, ask yourself if it’s truly enhancing your client’s experience or if it’s just another checkbox in your digital strategy. The most successful agencies know how to strike a balance between technology and maintaining the human touch that clients crave.

As you move forward, think about ways to strengthen those personal relationships that are the foundation of your business. Train your staff to offer exceptional service, improve your communication channels, and, most importantly, listen to your clients. By focusing on what they really want—reliable, personalized support—you’ll ensure that your agency remains relevant and respected, no matter how much the industry changes.