Auto insurers have added dozens of improvements to their mobile apps such as automatic collision reporting capabilities, body shop selection tools and more
Troy, Mich.—Auto insurers have spent the past year adding dozens of new features and refinements to their mobile apps, such as automatic collision reporting capabilities, enhanced image upload and body shop selection tools.
According to the J.D. Power 2024 U.S. Claims Digital Experience Study, released this week, these investments are resulting in significantly higher customer satisfaction scores. Overall satisfaction with the digital insurance claims process is 871 (on a 1,000-point scale), up 17 points from 2023.
“The digital channel has now surpassed traditional phone-based communication as the most satisfying way for insurance customers to submit a new claim,” said Mark Garrett, director of global insurance intelligence at J.D. Power. “After years of slow growth in the usage of digital channels for claims reporting, insurers’ investments into developing these tools and promoting usage have really paid off as more insureds than ever are using them … insurers have finally gotten the digital formula right with streamlined reporting tools, proactive updates and well-designed apps. However, the industry still has some work to do when it comes to helping insureds navigate between digital and offline channels, which can sometimes create unnecessary friction in the claims process.”
The U.S. Claims Digital Experience Study, now in its fifth year, evaluates digital experiences among P&C insurance customers throughout the claims process. It examines the functional aspects of desktop, mobile web and mobile apps based on four factors: visual appeal; clarity of the information; navigation; and range of services. The study is conducted in collaboration with Corporate Insight, the leading provider of competitive intelligence and user experience research to the financial services and healthcare industries.
“Property and casualty insurers made an average of 6.75 updates to their mobile apps in 2023, an increase from 5.72 in 2022, many of which augmented the resources provided to policyholders throughout the claims process,” said Michael Ellison, president of Corporate Insight. “The industry is reaching an important tipping point in which digital channels — particularly mobile apps — are the primary conduit to insurance customer engagement. This is particularly important as younger generations tend to be mobile-first. As technology improves, insurers can leverage mobile apps to offer a powerful customer experience at a pivotal juncture in the insurer-insured relationship.”
Following are some key findings of the 2024 study:
- Apps become center of insurance customer experience: Customer satisfaction scores are highest when insurer mobile apps were used to report a claim; submit photos and/or videos; and receive updates from the insurer.
- Pace of digital innovation continues to grow: Insurers implemented an average of 6.75 updates to their mobile apps in 2023, with the most changes occurring in the claims function. A total of 21 different changes were made to the claims functionality on insurance mobile apps during 2023, nearly double those in 2022.
- Disconnect between digital engagement and human follow-up: While 84% of claimants say their insurer provides an easy digital communication process, just 39% say their insurer always responds in a timely fashion to emails and text messages. Furthermore, nearly 20% of customers say they used more than one channel when they had a question, a frustration point that reduces satisfaction by more than 100 points. Among those who used more than one channel for the same topic, email, apps and phone calls are the most frequently cited.
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