Customers are decreasingly impressed with digital insurance offerings, JD Power study

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Insurers aren’t capturing the approval of their customers as much as they used to be.

According to a recent J.D. Power study of the property and casualty industry, customer satisfaction with digital insurance offerings is taking a dive, even though insurers have been investing heavily in their mobile apps and customer-facing websites.

Customer satisfaction fell quite a bit – by 16 points – when compared to last year’s survey results.

The J.D. Power study found that customer satisfaction fell to 499 out of 1,000 points this year. The company attributed the decline in satisfaction customers feel about digital insurance offerings to an overall frustration with rising rates and the lack of ability to locate lower premiums while they shop around for a new policy.

When it came to the overall customer satisfaction level with digital service, insurers fared better. It dropped by only one point to 705 out of 1,000, said the J.D. Power report on the study. The service experience includes a number of different factors such as speed, ease of navigation, visual appeal, and the content and information itself.

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The report on the study also showed that the access to human support when customers need it is helping traditional insurers to be able to keep up with a growing number of insurtechs that have entered the industry in a disruptive way. That said, insurtechs have been benefitting from higher speed and improved visual appeal metrics.

The poorer performance with digital insurance offerings was an important turn in this year’s results.

The research was called the 2022 US Insurance Digital Experience Study. JD Power redesigned it this year. It is conducted to evaluate digital consumer experiences among shoppers looking for quotes and existing customers in the property and casualty coverage market.

This digital insurance research did not involve asking customers regarding their experience while filing digital claims. Those statistics are gathered in a different study with results that are released in December. That study already determined that the insurance industry is trailing dramatically behind other industries. Not one of the key performance indicators in last December’s study showed that insurers achieved a minimum success rate of 50 percent with any performance indicator.

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