Customer satisfaction with insurers’ digital claims systems declined for the second consecutive year, according to a J.D. Power survey of auto and home policyholders.
Mark Garrett, director of P/C insurance intelligence for the consumer research company, said that challenges such as rising repair costs and supply chain disruptions are driving longer claims cycle times.
“Longer claims create more of a need to manage customer expectations and to keep those customers informed,” he said. “Digital customer engagement should be part of the solution—one that supports proactive, multi-channel engagement and regular updates with customers. But many customers are facing clunky interfaces, infrequent updates and frustrating workflows that force them to pick up the phone and chase down information.”
Overall customer satisfaction with the digital claims experience declined seven points to 857 on a 1,000-point scale.
J.D. Power said that customer experience with the estimation process is the most notable driver of claim satisfaction, adding 66 points to overall satisfaction scores when done well. But the survey showed insurers were meeting customer expectations only 34 percent of the time.
Customer satisfaction declines sharply for customers who need to arrange an in-person estimate after submitting photos using a digital process, J.D. Power said. Systems that allow customers to communicate electronically with estimators had the highest satisfaction scores, with the ability to video chat particularly popular. However, only 15 percent of customers are using this technology.
Overall satisfaction was also higher among customer who use a website or app to submit first notice of loss. Satisfaction was highest for customers who were able to digitally schedule an estimate, notify the repair shop and arrange for a rental car, J.D. Power said. However, among digitally engaged customers, only 41 percent are using the website or app to initially report a claim.
Customers were three times more likely to say the claims process was slower than expected when regular status updates were not provided via digital channels. However, customers who were provided with digital status updates were twice as likely to say the process was quicker than expected.
The 2022 U.S. Claims Digital Experience Study, conducted in collaboration with Corporate Insight, was based on survey responses from 2,890 auto and home insurance customers who filed a claim in the past 12 months. The survey was conducted from June through September 2022.