Customer satisfaction with auto claims hits record high
Low-touch experiences and higher car values are propelling consumer contentment regarding vehicle insurance claims.
Customer satisfaction with the auto insurance claim experience hit 880 on J.D. Power’s 1,000 point scale for 2021, continuing a four-year winning streak for the industry and setting a new record, according to a study from the data analytics and consumer intelligence company.
Satisfaction with settlement, first notice of loss (FNOL) and estimate processes were among the most improved factors during the year, J.D. Power reported.
Further, auto insurers’ investments in straight-through processing (STP), or low-touch experiences, resulted in the highest levels of satisfaction in the study. In comparison, claims that were handled more “manually,” needing interaction with three or more representatives, had the lowest levels of customer satisfaction.
The skyrocketing value of used vehicles during the past year also lifted satisfaction for insureds that had an accident resulting in a total loss, as their vehicles could have been worth more than they assumed.
Overall, The Hartford was the highest-ranked auto insurance company for customer satisfaction, followed by Erie Insurance, the Auto Club of Southern California Insurance Group, Amica Mutual and Farmers, respectively.
“The auto insurance industry has been investing heavily in streamlining the claims process and those investments are starting to pay off in the form of faster cycle times and record levels of satisfaction,” Tom Super, head of property and casualty insurance intelligence at J.D. Power, said in a release. “The challenge now will be continuing to drive service improvements as vehicle prices normalize and claim severity continues to increase. Those carriers with more sophisticated claimant triage will be better positioned to navigate the growing cost and complexity ahead.”
While satisfaction was up, J.D. Power reported auto insurance companies could be facing new challenges from the costs associated with vehicles featuring advanced driver assistance systems (ADAS).
During the year, 66% of insureds with low- to mid-severity claims said their vehicle had ADAS features. Claims from cars with these systems see costs nearly 14% higher on average than vehicles without ADAS functions, according to the study.
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