3 Areas Where Property Insurers Disappoint Customers in Claims Process

Property insurers are falling short in some key areas of the claims process even as they earn high marks for overall customer satisfaction, according to the J.D. Power 2019 U.S. Property Claims Satisfaction Study.

J.D. Power said that insurers continue to misfire in how they keep customers informed on the progress of a claim, the time to settle the claim and the fairness of the settlement. Consumers ranked each area among the lowest in a series of satisfaction. That becomes a competitive problem as customers continue to demand more personalized coverage, according to the consumer insight, advisory and data/analytics firm.

“Overall customer satisfaction remains high and the leading providers continue to outperform their peers by a comfortable margin,” David Pieffer, Property & Casualty Lead for J.D. Power Insurance Intelligence, said in prepared remarks. “There also are obvious areas for improvement where insurers could do a better job of managing customer expectations. As the industry keeps shifting toward more personalized, usage-based and on-demand insurance options, the ability to communicate effectively and make claimants feel at ease along the way will be a key differentiator for top-performing insurers.”

Among the study’s findings:

The study measured satisfaction with the property claims experience among customers who have filed a claim for damages by examining five factors (listed in order of importance): settlement; claim servicing; first notice of loss; estimation process; and repair process. J.D. Power received responses from 6,374 homeowners insurance customers, between April and November 2018.

Source: J.D. Power