Historically slow repair times lead to drop in auto policyholder satisfaction
Policyholder satisfaction with the auto claims process is down 7 points, according to J.D. Power.
The average automotive repair cycle time for a damaged vehicle currently stands around 17 days, compared with an average of 12 days prior to the pandemic, according to J.D. Power, which noted historically slow repair times are leading to dissatisfied policyholders.
Overall customer satisfaction with the auto claims process is down 7 points this year, while satisfaction with the repair process is down 9 points, J.D. Power reported. Additionally, 2022 marked the first time a majority of policyholders said supply chain issues, such as waiting for parts and repair shop backlogs, as reasons for the delays.
“Insurers are in a tight spot with their own profitability strained and a host of external factors causing their customers to grow increasingly disillusioned with the entire claims experience,” Mark Garrett, director of global insurance intelligence at J.D. Power., said in a release.
According to Garrett, insurance companies need to focus on managing customers’ expectations and fine-tuning their digital engagement strategies.
This is particularly true for long-tail claims, which take more effort as policyholders will have more questions and need regular updates on the process and next steps.
“Insurers that focused on managing timing expectations, were quickly available and responsive to customers and that provided multiple digital options for status updates were able to outperform the industry — with some even improving year over year,” Garrett said.
Do I have to repeat myself?
A regular gripe policyholders have about the claims process is the need to repeat the same information to different people throughout the process, J.D. Power reported.
The lowest satisfaction scores are seen when a claimant needs to interact with three or more representatives, while the highest scores are seen for insurers that use straight-through processing in the claims process.
Even if fully automated experiences aren’t available, simple steps like delivering status updates via text message can have a big impact. J.D. Power reports overall satisfaction increases 56 points when digital tools are used to keep policyholders up to date.
However, not all digital touchpoints are welcome, as J.D. Power found that overall satisfaction drops 4 points when policyholders report first notice of loss through a website or mobile app.
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