Historic rate increases within the P&C insurance industry have “pushed” a record-high volume of shoppers into the online marketplace to seek new quotes and switch carriers.
Research from J.D. Power’s 2023 US Insurance Digital Experience Study shows that insurers have been addressing the needs of those shoppers via the digital channel.
According to the firm, overall customer satisfaction with the P&C insurer digital shopping experience sits at 521 – on a 1,000-point scale – which has increased by 22 points from last year’s study. However, J.D. Power notes that relative to customer satisfaction scores with digital shopping tools in other industries, such as banking and airlines, the insurance industry still has a “long way to go.”
At the same time, overall customer satisfaction with the digital service experience sits at 702, down 3 points from 2022.
Customers’ inability to find the information they need is highlighted as being the biggest single drag on service experience satisfaction.
Overall customer satisfaction with digital account servicing and shopping is slightly higher among traditional insurers when compared to digital native InsurTech brands, J.D. Power notes.
While InsurTechs outperform on the research policy information metric, traditional carriers are performing as well or even better on all other key factors.
Traditional insurers are also performing especially well on ability to make digital payments, as well as ability to locate contact information and ability to make profile updates.
Elsewhere, Amica ranks highest in the service segment with a score of 735, while GEICO (731) ranks second and Progressive (722) ranks third.
American Family ranks highest in the shopping segment with a score of 549. Farmers (547) ranks second and Automobile Club Group (AAA) (543) ranks third.
J.D. Powers’ US Insurance Digital Experience Study evaluates the digital consumer experiences of both P&C insurance shoppers seeking quotes and existing customers conducting typical policy-servicing activities.
It examines the functional aspects of desktop, mobile web and mobile apps based on four factors: ease of navigation; speed; visual appeal; and information/content.
“The industry is seeing historical levels of customer churn right now, which puts a spotlight on the critical role insurer digital channels play in not just attracting new customers, but also onboarding them, and in retaining existing customers,” said Stephen Crewdson, senior director, insurance business intelligence at J.D. Power.
He continues: “When it comes to shopping, insurers are starting to get the formula right, but they are still lagging far behind the best-in-class offerings in other industries like banking and airlines when it comes to servicing existing customers. That needs to become a focal point if insurers really want to build lifetime customer value.”
“The last thing most insurance customers want to do is have to call their carrier for help with basic account servicing questions and actions,” added Michael Ellison, president of Corporate Insight.
“Increasingly, the usability and accessibility of a carrier’s digital solutions plays a big role in both attracting new customers and retaining existing ones.”
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