Digital pains in claims processing for P&C insurers: J.D. Power

Customer satisfaction declined again for the second year, according to J.D. Power’s 2022 U.S. Claims Digital Experience Study. 

The study reveals that digital first notice of loss increases overall satisfaction for customers who use those tools compared to those that report a claim via a call center. However, only 42% of digitally savvy customers are using an insurer’s website or app to report a claim, according to the study.

Mark Garrett, director of P&C insurance intelligence at J.D. Power says in an email response: “It’s important to get digital status updates right and have the proper frequency and information available to limit the need for the customer to call. We find that satisfaction drops 50 points (on a 1,000-point scale) when comparing those who only use digital channels or who use digital in combination with being called compared to customers who use digital channels but also need to pick up the phone and call for an update. Furthermore, nearly one-half of customers who stay in digital channels view the process as ‘very easy.’ This drops to only 27% among those who need to leave the digital channel to make phone calls.”

The study examines the digital experiences of P&C insurance customers during the claims process, including aspects of the desktop, mobile web and app experience. The study was conducted with Corporate Insight and includes 2,890 evaluations of people who filed a claim in the last 12 months.

More findings to note:

The estimation process when done well can increase satisfaction scores 66 points. Customers are two times more likely to say the claims process was quick if they’re provided with regular status updates via website or mobile app.Electronic communications with an estimator increase satisfaction scores, video chat scores the highest, but only 15% of customers are using the technology.

“Longer claims create more of a need to manage customer expectations and to keep those customers informed,” said Garrett, 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. But many customers are facing clunky interfaces, infrequent updates and frustrating workflows that force them to pick up the phone and chase down information. The good news is that leading carriers have begun to crack the code on digital and they are rapidly establishing a set of best practices that could pave the way for industry-wide improvements.”