J.D. Power: Auto Insurers Rate High in Claims Customer Satisfaction, Despite Tech Lag

Auto insurers are achieving high levels of customer satisfaction when handling claims, but still struggle to transition claimants to digital claims reporting solutions, according to the J.D. Power 2018 U.S. Auto Claims Satisfaction Study. These findings are noteworthy in light of claim severity outpacing the decline in claim frequency, which is putting enormous pressure on traditional customer service and claims processing operations to create a more effective way to handle auto claims.

“Insurers are doing a great job at the critical customer touch point of claims reporting, but the end-to-end claim process is still costly and not as fully integrated as it needs to be,” said David Pieffer, Property & Casualty Insurance Practice lead at J.D. Power. “The challenge for insurers is to seamlessly transition the claims reporting function to more cost-effective digital customer care solutions. For many insurance customers, reporting a claim is one of the few direct interactions they have with their insurer and it comes at a time when they are looking for a reassuring voice. That’s not the ideal time to introduce a new digital touch point.”

Following are key findings of the 2018 study:

Insurer Rankings
Erie Insurance ranks highest in overall customer satisfaction with a score of 891. Amica Mutual (887) ranks second and Auto-Owners Insurance (882) ranks third.

The 2018 U.S. Auto Claims Satisfaction Study is based on responses from 10,896 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 2017 through August 2018.

For additional information about the U.S. Auto Claims Satisfaction Study, visit https://www.jdpower.com/resource/jd-power-us-auto-claims-satisfaction-study.

Source: J.D. Power