Auto Insurance Claims Satisfaction Soars as Pandemic Reduces Accident Frequency: J.D. Power

October 22, 2020

Having fewer auto insurance claims during the coronavirus pandemic appears to have given insurers time to refine their customer experience and deliver higher higher quality claims service.

According to the J.D. Power 2020 U.S. Auto Claims Satisfaction Study, a 22% decline in frequency of auto insurance repairable claims has translated into shorter cycle times, better service delivery and, ultimately, a record high level of customer satisfaction.

Overall satisfaction with the auto insurance claims process increased to a record-high 872 (on a 1,000-point scale), compared to 868 points from 2019. This the third straight year satisfaction has improved in the study.

Auto insurers increased the speed of processing for claimants during the pandemic and saw an increase in the percentage of policyholders who said they would definitely renew with their carriers compared to before the pandemic.

“This is important because it demonstrates that efforts to improve claimant service delivery translates directly to improved business outcomes,” said Tom Super, head of property/casualty insurance intelligence at J.D. Power, noting that increased satisfaction can mean increased intent to renew policies.

“The challenge now, of course, will be maintaining that high level of service as claims volumes start to normalize.”

More from the J.D Power 2020 study:

The 2020 U.S. Auto Claims Satisfaction Study is based on responses from 11,055 auto insurance customers who settled a claim within the past six months prior to taking the survey. The study excludes claimants whose vehicle incurred only glass/windshield damage or was stolen, or who only filed a roadside assistance claim. The study was fielded from November 2019 through September 2020.

Source: J.D. Power

*This story ran previously in our sister publication Insurance Journal.