Policyholder satisfaction with digital claims falls for second consecutive year
Satisfaction fell 7 points year-on-year, J.D. Power reported, and the estimation process played a big role in the drop.
For the second year running, customer satisfaction with the digital claims experiences has declined, according to J.D. Power, which noted satisfaction fell 7 points year-over-year.
The estimation process is a big determinant of policyholder satisfaction, J.D. Power found. When done right, it can significantly lift satisfaction scores. However, insurers are only meeting policyholders’ expectations 34% of the time when it comes to digital estimates.
One sticking point is the blurring between digital and direct contact. While submitting photos of damage is easy to do with a mobile app, J.D. Power reported consumers find the process becomes cumbersome when having to arrange for an in-person estimate. Although electronic communications, such as video chatting with an estimator, result in the highest satisfaction scores, just 15% of customers use these digital tools.
The digital claims experience does have its bright spots, chiefly first notice of loss (FNOL). Policyholder satisfaction with the claims process is higher among those that used digital FNOL tools, whether through a website or mobile, when compared to consumers who filed FNOL through a call center. Yet, even among digitally engaged consumers, just 41% are using a website or app to start the claims process.
“Navigating the insurance claims process is not a particularly enjoyable process for any consumer, but effective digital tools can take the sting out of the equation by making it easy to exchange information with an insurer, receive frequent updates on progress and ask questions along the way,” Michael Ellison, president of Corporate Insight, said in a release. “The insurers that are setting themselves apart as leaders in this space are those that have consistently delivered simple, easy-to-use tools and proactively managed customer communications throughout the claims process.”
A crucial aspect to improve satisfaction with digital claims is managing policyholders’ expectations. J.D. Power reported consumers are three times more likely to say the claim process took longer than expected when they aren’t regularly updated via digital channels. When they are regularly provided status updates through a website or mobile app, consumers are nearly two times more likely to say the process was quicker than expected.
“Longer claims create more of a need to manage customer expectations and to keep those customers informed,” Mark Garrett, director of P&C insurance intelligence at J.D. Power, said in a release. “Digital customer engagement should be part of the solution, one that supports proactive, multichannel 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.”
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