Dive Brief:
- The average auto repair cycle time has doubled to over 23 days in the last two years, putting more pressure on auto insurers to manage customer expectations during the process, according to the J.D. Power 2023 U.S. Claims Digital Experience Study. The study looked at 3,184 evaluations by auto or home insurance customers.
- While claimants expect digital tools to simplify the experience and keep them informed throughout the claim process, only 2 in 5 say both expectations were met. Just over one-third said the overall claims process is efficient, keeps them informed and reduces time spent on the phone.
- Difficult to use or confusing digital processes are the biggest overall pain points for claimants, said Mark Garrett, director of global insurance intelligence at J.D. Power, in an email.
Dive Insight:
Customer satisfaction is highest when claimants receive communication with all the necessary information for their claims, but insurers are falling short in their digital offerings. The resulting confusion can have serious repercussions on loyalty.
The vast majority of customers — 86% — who find the reporting, estimation and settlement processes very easy said they will renew their insurance policy, according to the study. This drops by half to 41% among those who find none of these aspects very easy.
Insurers can help the process along by using personalized text messages, status updates through mobile apps or guides to help with reading estimates, according to Garrett. These methods can simplify claims for the customer without costing much for the insurer.
Customers want digital options to "make the process simpler and faster while keeping them informed,” according to Garrett. “They want access to information how and when they want it,” he added.
Eliminating the need to call for basic status updates is a key benefit of digital communications, according to Garrett. However, the study found that one-third of claimants still needed to contact their insurer after receiving digital communications.
“It’s often an indicator that the digital communication/status update did not sufficiently provide the info the customer needed,” Garrett said in an email. “So when they have to call to ask clarifying questions or get more info, that can have a negative impact on the experience.”
Insurers should also be certain that they are establishing clear expectations and following through on them, according to Garrett. Otherwise, they risk generating more follow-up calls.
Digital experiences aren’t every customer’s preference, and online channels cannot solve every problem. Insurers need to ensure claimants don’t have to repeat themselves when a call does become necessary.
“Offer the right tools to the right people,” Garrett said. “Give people a way out of digital channels if they aren’t having a great experience.”
