J.D. Power Study: Consumers Slow to File Digital Insurance Claims
Oct. 25, 2017—J.D. Power released its 2017 U.S. Auto Claims Satisfaction Study. The report found that consumers are still slow to adopt mobile auto insurance apps and submit auto insurance claims digitally.
The 2017 U.S. Auto Claims Satisfaction Study is based on responses from 11,857 auto insurance customers who settled a claim within the past six months prior to taking the survey.
The study excludes claimants whose vehicle incurred only glass/windshield damage or was stolen, or who only filed a roadside assistance claim.
Survey data was collected from November 2016 through August 2017.
The study shows, for example, that few customers are currently adopting digital first notice of loss (FNOL) offerings.
Nearly one-fourth (22 percent) of auto insurance customers begin their interaction with an insurer online, but only 9 percent of customers will report a claim digitally, via the web or a mobile app.
Even among Gen Y customers, who are most likely to report a claim digitally, only 12 percent are taking advantage of FNOL technology: up only two percentage points since 2016.
Overall satisfaction is 16 points lower (on a 1,000-point scale) among all customers who are using digital FNOL offerings, than among those who report via phone.
While both adoption rates and satisfaction with digital FNOL offerings remain low, digital status updates and digital appraisal offerings—which allow customers to upload damage photos via a mobile app—are now used by approximately 16 percent of auto insurance claimants.
Overall satisfaction with the claims process is 33 points higher among customers who receive digital status updates, than among those who don’t.
Customer satisfaction with digital appraisal apps improves by 26 points among Gen Y consumers, but declines by 16 points among Pre-Boomers (those born before 1946) when using appraisal apps.
However, it shows the largest range of customer satisfaction, from insurer to insurer. The top performer in the claims servicing factor has an overall customer satisfaction score 104 points higher than that of the lowest performer.
J.D Power noted that out of all the insurers ranked in the study, Amica Mutual ranked the highest in overall customer satisfaction with the auto insurance claims process, with a score of 901.