Customer Satisfaction with Digital Claims Declines Second Year in a Row

Customer satisfaction with insurers’ digital claims systems declined for the second time in two years, according to a JD Power survey of auto and home policyholders.

Mark Garrett, director of property and casualty insurance intelligence for the consumer research company, said in a press release that customers are facing “clunky interfaces, infrequent updates and frustrating workflows that force them to pick up the phone and chase down information.”

“Longer claims create more of a need to manage customer expectations and to keep those customers informed,” Garrett said in a press release. “Digital customer engagement should be part of the solution, one that supports proactive, multi-channel engagement and regular updates with customers.”

Overall customer satisfaction with the digital claims experience was 857 on a 1,000-point scale, a seven-point decrease from results in 2021.

JD Power said that customer experience with the estimation process is the most notable driver of claim satisfaction. But the survey showed insurers were meeting customer expectations only 34% of the time. If done well, the estimation process adds 66 points to overall satisfaction scores.

Customer satisfaction declines sharply for customers who need to arrange an in-person estimate after submitting photos using a digital process, JD 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% of customers surveyed were able to use the technology.

Similarly, overall satisfaction was higher among customer who were able to use a website or an app to submit the first notice of loss, but only 41% of customers were given that opportunity. Satisfaction was highest for customers who were able to digitally schedule an estimate, notify the repair shop and arrange for a rental car, JD Power said.

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. Customers who were provided with digital status updates were twice as likely to say the process was quicker than expected.

The survey 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 conceited from June through September this year.

It was the third year that JD Power has surveyed insurance costumers about their satisfaction with the digital claims process.