Customer satisfaction with individual annuities has declined, according to the J.D. Power 2025 U.S. Individual Annuity Study, released on October 28, 2025. The study shows overall satisfaction fell by six points year over year (on a 1,000-point scale), largely due to issues experienced by newer clients and limitations in digital tools. The findings highlight a growing need for modernization within the annuities sector as other areas of financial services advance toward personalized, digital-first engagement.
Craig Martin, executive director of global insurance intelligence at J.D. Power, noted that customers—particularly those new to annuities—expect a higher level of clarity and convenience comparable to other industries. “The data makes it clear that subpar experiences early in the relationship, coupled with ineffective digital tools, are leading to frustration, which not only threatens customer satisfaction but also strains long-term loyalty to the annuity provider and the financial professionals selling these products,” Martin said.
Key Findings
- Digital satisfaction declines: Digital channels were the only area to see a significant drop in satisfaction, declining 20 points from 2024. Digital now ranks as the lowest-scoring part of the customer relationship.
- Newer clients report greater dissatisfaction: Customers who have held their policy for less than three years showed a 16-point decline in satisfaction, with the largest drops in the areas of people and digital channels.
- Decreased product understanding: Fewer customers reported complete understanding of their annuity products. The percentage who said they “completely understand” annuity costs and fees fell from 52% to 44%, while complete understanding of annuity contracts declined from 58% to 53%.
Provider Rankings
For the second consecutive year, USAA ranks highest among individual annuity providers with a score of 740. Western & Southern Life follows in second place with 684, and New York Life ranks third with 675.
Study Overview
The U.S. Individual Annuity Study measures customer experiences across eight key dimensions: trust, value for price, ability to obtain service, ease of doing business, people, product offerings, digital channels, and problem resolution. The 2025 study is based on responses from 4,682 individual annuity customers, collected from August 2024 through July 2025.
More details about the study are available at J.D. Power’s website.
About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services, and data analytics. For more than 55 years, the company has applied big data, artificial intelligence, and algorithmic modeling to understand consumer behavior and guide businesses across major industries. J.D. Power maintains offices in North America, Europe, and Asia Pacific. More information can be found at JDPower.com/business, and its auto-shopping tool is available at JDPower.com.
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