The J.D. Power 2022 U.S. Claims Digital Experience Study was published in December 2022. Customers are clear about their preferences when it comes to how their insurance company is meeting their needs — or not meeting them. While every major carrier in the U.S. has some level of digital presence, some companies are doing it better than others.
Customers expect an intuitive, fast digital experience and when their expectations are not met, their satisfaction with their overall claim is lower. This poor impression affects customer retention, lowers satisfaction scores, and drives complaints. But the survey also showed that when companies get digital right, their customers are happy!
“Digital customer engagement should be part of the solution, one that supports proactive, multi-channel 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. The good news is that leading carriers have begun to crack the code on digital, and they are rapidly establishing a set of best practices that could pave the way for industry-wide improvements,” explained Mark Garrett, director of P&C insurance intelligence at J.D. Power.
This is the second consecutive year in which customer satisfaction has declined with the digital claims experience. The industry is positioned to change this perception through robust technology deployed through partnerships between insurance companies and insurtech providers.
Point improvement when digital estimates are done well
Of the time customers are dissatisfied with the digital estimation process
Of customers use a mobile app or website to report their loss
The key findings from the survey highlight the opportunities for claims solutions in 2023:
Digital Estimation Process Drives Customer Satisfaction
The survey found the digital estimation process is critical to customer satisfaction. When the digital estimate process is done well using claims management software, overall satisfaction scores improve by 66 points. However, poor processes can dramatically decrease satisfaction scores, and customer satisfaction suffers when insurance companies get digital estimating wrong.
According to the survey, customers are dissatisfied with their insurance company’s digital estimation process 76% of the time. This disconnect represents a significant cost and challenge to the insurer. Not only is the customer dissatisfied with the sub-par experience, but the insurance company must also spend more time and money to work with the customer in different ways.
One of the failure points noted in the survey was the ability to submit photos electronically, which is a crucial component of the digital estimation process. Customers become frustrated when they submit their pictures digitally but still have to meet with an appraiser in person to complete the estimate. Another major point of dissatisfaction for customers is when they are unable to communicate electronically with their appraiser during the digital appraisal process, making video chat particularly popular with customers who must go through the meeting process.
Enhancing Customer Satisfaction with Digital Claims Workflows
Many customers like the ease of managing their claims digitally, from FNOL through appraisal to payment. Customer satisfaction is higher when policyholders can schedule appointments, communicate with their insurer, and review their claims digitally. But even with this higher level of satisfaction, insurers are not consistently providing a best-in-class digital claims experience.
One area that was particularly lacking in the survey was the eFNOL process. Although many insurers offered their policyholders a way to report a loss digitally, the survey showed that only 41% of customers used the mobile app or website to report their loss. This means insurance companies have a significant opportunity to improve the ease of use of their digital FNOL process through claims management software or other digital technology.
Customers also showed a strong preference for digital communications in the survey. Customers who were provided regular digital status updates were twice as likely to report the claims process went more quickly than they expected. But customers who did not receive these digital status updates throughout the life of their claim were three times more likely to say the process was slower than they expected.
Solve Digital Insurance Claims Challenges With Technology
Insurance companies can respond to this customer feedback by reviewing their digital claims experience. Because customer satisfaction is closely linked to virtual appraisals, digital communication, and in-app status updates, carriers can focus on these areas to find improvements.
Snapsheet is the leader in virtual appraisals, offering digital appraisals and claims management for the insurance industry.. Our cloud-based claims management software helps insurance carriers, insurtechs, and MGAs of all sizes offer their customers an intuitive digital claims experience. With customizable solutions for virtual estimates, digital communication, push notifications, eFNOL, digital payments, and more, Snapsheet has the complete solution for the digital claims experience.
Get a free demo to learn how Snapsheet can revolutionize your digital claims experience.