U.S. property claims satisfaction is at a five-year low
Amica Mutual and The Hartford tied for highest claims customer satisfaction, according to J.D. Power's latest study.
Growing pains related to transitioning to digital services are to blame for property claims satisfaction hitting a five-year low, says the 2022 U.S. Property Claims Satisfaction Study from J.D. Power.
“Insurers really struggled last year, partly due to circumstances beyond their control,” Mark Garrett, director, insurance intelligence at J.D. Power, said in a press release. “Longer cycle times, material shortages and personnel availability put added pressure on insurers to keep customers informed and expectations managed. Digital tools were a pivotal part of the process as customers increasingly turned to digital channels by submitting photos to assist in the estimation process and were far more willing to use the tools for status updates. Unfortunately, these digital tools are not always meeting expectations, resulting in support staff needing to get involved. That disconnect creates a major drag on customer satisfaction.”
Amica Mutual and The Hartford tied for the top spot on the 2022 list of highest-rated companies for customer claims satisfaction, with Farmers claiming the third highest ranking.
However, the study found that nearly every insurer’s customer satisfaction scores dropped, demonstrating a widespread issue in the industry. Slower claims times, as mentioned earlier, are partially to blame for customer frustration and, according to the report, the time it took for claimants to have their repairs completed increased by 2.9 days from the previous year.
The 2022 study also marks the first time a digital channel (email) surpassed phone calls as the most frequently used communication method between insurers and their claimants. The usage of mobile apps has also increased, the study found, but only 11% of customers are fully utilizing digital resources for major parts of the claims process, including digitally submitting the first notice of loss, using digital estimation and using apps or websites to check the status of claims.
According to the study, customer claims satisfaction scores plummet even further when customers are using a hybrid-digital method of handling claims. This might include a customer who submits photos digitally to begin the claim, but still must schedule an in-person inspection. These customers, J.D. Power says, are more likely to find the claims process too complicated, or to have too many touch points.
You can find more information about the complete findings of J.D. Power’s 2022 U.S. Property Claims Satisfaction Survey here.