Many insurers are still struggling to deliver a seamless digital experience to their customers even as digital channels become more vital to maintain customer satisfaction, according to a new study by J.D. Power.
Customers say their average auto repair cycle time has doubled over the past two years – now exceeding 23 days – and the average time for home repairs is also on the rise. With that in mind, insurers need to work harder to manage customer expectations, according to J.D. Power’s 2023 U.S. Claims Digital Experience Study.
However, the study found that with many insurers still floundering when it comes to delivering seamless digital experiences, overall customer satisfaction is 854 (on a 1,000-point scale), a three-point drop from 2022.
“Across all of our insurance claims experience studies, we find that the more insurers can do to manage expectations, keep customers updated and make it easy for them to manage the claims process without a lot of effort, the more satisfied customers become – even when repair cycle times are longer than ever,” said Mark Garrett, director of global insurance intelligence at J.D. Power.
“Customers have an expectation that using digital tools will create efficiencies in the process and keep them informed throughout their claim, but many insurers struggle to meet those expectations. Only 41% of customers ‘completely agree’ both expectations were met. Whether it is making a claim, submitting photos or communicating with claims staff, there are still bumps along the digital road. Notable, too, is that only 35% of customers said the estimation process was ‘very easy.’”
The study found that when those experiences did go well, it paid dividends in increased customer satisfaction.
“Digital communications in the form of personalized text messages, status updates via mobile apps and guides to help reading estimates can dramatically improve that experience without significantly raising customer service costs for insurers,” J.D. Power said. “However, many customers still indicate they need to pick up the phone to track down a status update, often resulting in repeating information to a representative. This negatively affects the overall customer experience.”
The study, now in its fourth year, evaluated digital experiences among P&C insurance customers during the claims process. It investigated the functional aspects of desktop, mobile web and mobile apps based on visual appeal, clarity of information, navigation and range of services.
Key findings of the study include:
The study was based on 3,184 responses from home or auto insurance customers who filed a claim in the last 12 months.
A study released by J.D. Power this summer found record-low levels of customer satisfaction with auto insurers.
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