A new J.D. Power study showed there is still a struggle in getting customers to report over digital channels.
Auto insurance claims satisfaction has hit an all time high, according to the outcomes of a new J.D. Power study. That said, insurance companies are still finding it challenging to get their customers to use digital claims reporting tools and products.
The nature of claims has been undergoing an important change, but insurers appear to be keeping up.
“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,” said a J.D. Power press release about the auto insurance claims survey results.
Insurance companies are “doing a great job” at the most vital components of claims reporting, said J.D. Power property and casualty insurance practice head, David Pieffer. However, “the end-to-end claim process is still costly and not as fully integrated as it needs to be,” he added.
Despite customer auto insurance claims satisfaction, insurers still face important challenges.
Insurance companies are working to create a seamless transition in their claims reporting processes in order to improve cost effectiveness without sacrificing customer satisfaction. Customers have been very open to embracing digital solutions for many interactions with their insurers.
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However, J.D. Power research continues to find that customers still prefer a direct interaction with a human representative when making a claim. In fact, filing a claim is among the few remaining purposes for which customers prefer direct interactions. The sound of a reassuring voice can make a significant difference in the reporting process. This makes it challenging for insurance companies to introduce a new digital touch point, said Pieffer, according to Insurance Business Mag.
Among the key findings of the J.D. Power auto insurance study were the following:
• Customer auto insurance claims satisfaction is higher than ever before.
• Satisfaction in this area is consistent across the auto insurance industry.
• Insurance companies are struggling to convince customers to be open to using digital channels for “first notice of loss” (FNOL) reporting