Auto insureds have been slow to accept digital claims reporting despite insurers’ push toward using mobile apps and digital channels to purchase insurance, according to J.D. Power’s 2017 U.S. Auto Claims Satisfaction study.
The report noted that the results were surprising, as there’s been a substantial increase in claims frequency and high losses, which has caused auto insurers to try and maintain costs by relying more on digital platforms.
Here are a few of the study’s key findings:
Low consumer adoption of digital first notice of loss (FNOL) offerings: 22 percent of insureds begin their interaction with an insurer online, but only 9 percent choose to report a claim through the Internet or mobile app, according to the report.
Only 12 percent of Generation Y customers utilize FNOL technology, which has only increased by 2 percent since 2016. According to the study, Generation Y consumers—those who are born in 1977-1994—are more inclined to report a claim digitally.
And, on a 1,000-point scale, overall satisfaction of insureds using FNOL technology is 16 points lower than those who chose to report a claim via phone.
Digital appraisal and status updates showing promise: Adoption rates and satisfaction with digital FNOL may be low, but digital status updates and appraisal offerings are being used by approximately 16 percent of insureds. These offerings allow consumers to upload pictures of damage through an insurer’s mobile app.
Insureds who receive digital status updates have an overall 33-point higher satisfaction rate when compared to those who do not use the platforms.
“Customer satisfaction with digital appraisal apps is mixed based on the age of the customer, with satisfaction improving by 26 points among Gen Y and declining by 16 points among Pre-Boomers when using appraisal apps,” the report stated.
Claim servicing tops driver of satisfaction, but results vary widely by insurer: Claim servicing ranks at the top of overall customer satisfaction, but it also has the largest range of performance when comparing the highest and lowest insurer scores. According to the study, the top performer in the claims servicing factor had an overall customer satisfaction score that was 104 points higher than the lowest performer.