Insurance carrier websites need major upgrades, policyholders say

A survey of 500 U.S. insurance consumers found that only 17% think their insurer’s website is “excellent,” which the surveying organization says should be a “wake up call” for the industry.

Insured.io, a provider of SaaS solutions for insurers, asked the consumers about customer experience functions, including claims and the carriers’ websites and apps.

Steve Johnson, co-founder, insured.io

© Anita Martin Photography 2020

“The impact for carriers, particularly mid-sized carriers, is significant, as younger generations increasingly dominate the insurance market,” stated Steve Johnson, co-founder of insured.io, in a written response to questions. “The survey shows that consumers, especially those aged 26-45, value a quality digital experience when interacting with their insurance companies on the same level as that carrier’s brand reputation.”

Asked about reasons for considering switching insurers, 53% of respondents cited friction in claims processing, according to Johnson. Another 31% said a poorly functioning website or mobile app was a reason to switch. This “further underscores the industry’s challenges in delivering a seamless digital experience,” he said.

Insured.io’s survey found that consumers younger than 45 see the portal or app experience as twice as important as consumers older than 45. Among all ages surveyed, 81% prefer using portals or apps for routine tasks, 74% prefer to use these for policy renewals, 55% for buying new insurance and 50% for submitting claims.

“Think, for a moment, about how much time and resources are invested in brand reputation in our industry,” Johnson stated. “Carriers that fail to provide robust digital platforms—such as user-friendly websites, mobile apps, and real-time updates—risk losing customers to competitors who do, as the survey indicates that consumers rank the quality of an online portal equal to that of a company’s brand or reputation when choosing a carrier.”

The survey also found that an automated service that could show insurance customers the progress of their claim and payment would be a draw for switching carriers, with 59% of respondents saying so. 

“Carriers should view these findings as a strong incentive to enhance their digital offerings, streamline claims processes, and invest in technologies that reduce friction in customer interactions,” Johnson states. “By addressing these areas, carriers can improve customer satisfaction, reduce churn, and gain a competitive edge in an increasingly digital marketplace.”