Insurers' need to improve digital channels: J.D. Power

The J.D. Power 2023 U.S. Insurance Digital Experience Study reports though property and casualty insurers have made notable strides in addressing the needs of shoppers through digital channels, overall satisfaction with digital services for existing policyholders has declined. 

The study, conducted in partnership with Corporate Insight, assesses the digital customer experience of property and casualty insurance shoppers by evaluating the functionality and user-friendliness of an insurer’s digital channels, including  desktop, mobile web and apps, on the ease of navigation, information and content, speed and visual appeal of the digital experience.

“The J.D. Power 2023 U.S. Insurance Digital Experience Study shows that insurers have a lot of room to improve customer service experiences through digital channels. Insurance is a complex product that many consumers do not understand well. Leading insurers are going to continue refining their ability to provide self-service through digital channels for these complex products. Retail banks and airlines provide great examples for insurers to learn from,” writes Stephen Crewdson, senior director of insurance business intelligence at J.D. Power, in an email to Digital Insurance. 

Property and casualty insurance is continuing to witness unprecedented rate increases, prompting a record number of consumers to shop and switch carriers, according to JD Power’s Q4 2022 Quarterly Shopping List Report. 

Though overall P&C consumer satisfaction is up 22 points at 521 on a 1,000-point scale compared to last year, digital service satisfaction is 702 points, which is three points lower than in 2022. Scores are at 698, their lowest point, when policyholders report that they have difficulty searching for information via the insurer’s website or app. Overall, customers with these issues must call the insurance company 42% of the time. Scores among mobile app performance significantly vary – though the satisfaction score for the highest performing 25% of customers using a mobile app is 872, the score for the bottom 25% of customers using a mobile app declines to 567 points. 

Overall digital customer satisfaction in both online shopping and account management was higher when conducted with channels through traditional insurers over those of insurtechs. Traditional insurance companies excelled in the accessibility of digital payments, contact information and profile updates of their online channels. 

“The last thing most insurance customers want to do is have to call their carrier for help with basic account servicing questions and actions,” said Michael Ellison, president of Corporate Insight, in a news release. “Increasingly, the usability and accessibility of a carrier’s digital solutions plays a big role in both attracting new customers and retaining existing ones.”

Amica, Geico and Progressive ranked the highest in overall customer satisfaction in the digital account service category of the study, and American Family, Farmers and Automobile Club Group ranked the highest in the shopping segment.