Customer Satisfaction with Digital Claims Process Surges as Insurance Carriers Load New Features onto Apps: J.D. Power

Digital Claims Reporting Now Outperforms Phone-Based Communication: J.D. Power 2024 U.S. Claims Digital Experience Study

Troy, MI (Dec. 3, 2024) – Auto and home insurers have spent the past year adding dozens of new features and refinements to their mobile apps, such as automatic collision reporting capabilities, enhanced image upload and body shop selection tools. According to the J.D. Power 2024 U.S. Claims Digital Experience Study,^SM these investments are resulting in significantly higher customer satisfaction scores. Overall satisfaction with the digital insurance claims process is 871 (on a 1,000-point scale), up 17 points from 2023.

“The digital channel has now surpassed traditional phone-based communication as the most satisfying way for insurance customers to submit a new claim,” said Mark Garrett, director of global insurance intelligence at J.D. Power. “After years of slow growth in the usage of digital channels for claims reporting, insurers’ investments into developing these tools and promoting usage have really paid off as more insureds than ever are using them. Auto and home insurers have finally gotten the digital formula right with streamlined reporting tools, proactive updates and well-designed apps. However, the industry still has some work to do when it comes to helping insureds navigate between digital and offline channels, which can sometimes create unnecessary friction in the claims process.”

The U.S. Claims Digital Experience Study, now in its fifth year, evaluates digital experiences among P&C insurance customers throughout the claims process. It examines the functional aspects of desktop, mobile web and mobile apps based on four factors: visual appeal; clarity of the information; navigation; and range of services. The study is conducted in collaboration with Corporate Insight, the leading provider of competitive intelligence and user experience research to the financial services and healthcare industries.

“Property and casualty insurers made an average of 6.75 updates to their mobile apps in 2023, an increase from 5.72 in 2022, many of which augmented the resources provided to policyholders throughout the claims process,” said Michael Ellison, president of Corporate Insight. “The industry is reaching an important tipping point in which digital channels—particularly mobile apps—are the primary conduit to insurance customer engagement. This is particularly important as younger generations tend to be mobile-first. As technology improves, insurers can leverage mobile apps to offer a powerful customer experience at a pivotal juncture in the insurer-insured relationship.”

Following are some of the key findings of the 2024 study:

• Customer satisfaction surges: Overall customer satisfaction with the auto and home insurance digital claims experience rises 17 points this year, driven largely by improvements in the range of services offered on mobile apps and websites and the visual appeal of those digital properties.
• Apps become center of insurance customer experience: Customer satisfaction scores are highest when insurer mobile apps were used to report a claim; submit photos and/or videos; and receive updates from the insurer.
• Pace of digital innovation continues to grow: Insurers implemented an average of 6.75 updates to their mobile apps in 2023,^[1] with the most changes occurring in the claims function. A total of 21 different changes were made to the claims functionality on insurance mobile apps during 2023, nearly double those in 2022.
• Disconnect between digital engagement and human follow-up: While 84% of claimants say their insurer provides an easy digital communication process, just 39% say their insurer always responds in a timely fashion to emails and text messages. Furthermore, nearly 20% of customers say they used more than one channel when they had a question, a frustration point that reduces satisfaction by more than 100 points. Among those who used more than one channel for the same topic, email, apps and phone calls are the most frequently cited.

The 2024 U.S. Claims Digital Experience Study is based on 2,982 evaluations provided by auto or home insurance customers who filed a claim in the past 12 months. The study was fielded from May through September 2024.

For more information, refer to the J.D. Power 2024 U.S. Auto Claims Satisfaction Study.

Study Rankings

NJM Insurance Co. ranks highest in overall customer satisfaction with a score of 782. Amica (746) ranks second and Erie Insurance (733) ranks third.

The U.S. Auto Claims Satisfaction Study was redesigned for 2024. Scores are not comparable year over year with previous studies. The 2024 study is based on responses from 9,725 auto insurance customers who settled a claim within the past nine months prior to participating in the survey. It measures customer experience across eight core dimensions (in order of importance): trust; fairness of settlement; time to settle claim; people; communication; ease of resolving claim; ease of starting claim; and digital channels. 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 October 2023 through August 2024.

View the customer satisfaction index ranking charts in J.D. Power’s press release.

For more information, refer to the J.D. Power 2024 U.S. Claims Digital Experience Study.

Notes

1. Corporate Insight’s Mobile App Pace of Change Report, January 2024.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

J.D. Power is headquartered in Troy, Mich., and has offices in North America, Europe, and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at JDPower.com.

About Corporate Insight

Corporate Insight delivers competitive intelligence, user experience research and consulting services to the nation’s leading financial and health institutions. As the recognized industry leader in customer experience research since 1992, CI has been the trusted partner to corporations seeking to improve their digital capabilities and user experience. Their best-in-class research platform and unique approach of analyzing the actual customer experience helps corporations advance their competitive position in the marketplace. For more information, visit corporateinsight.com.

SOURCE: J.D. Power

Tags: App, claims, J.D. Power, mobile app, rankings, satisfaction, United States (USA)