Customer satisfaction with online insurance shopping declined while service stayed flat, according to J.D. Power's 2021 U.S. Insurance Digital Experience Study.
Customer satisfaction scores decline as tasks become more complicated, the company found, including requesting a quote, researching policy information, adding a driver or vehicle and viewing policy-related information are among the areas in which insurers struggle to delight digital customers.
The survey of more than 11,000 customers was fielded in February and March 2021, as the U.S. emerges from the COVID-19 pandemic. Insurers were ranked based on service experience (top carriers: GEICO, Progressive, Farmers and The Hartford) and shopping (top carriers: Mercury, Auto-Owners, and State Farm).
“The bar just continues to get higher for customer expectations around digital, and while many insurers are hitting the mark on the digital basics, few insurers are using digital in new ways to drive growth and engagement,” said Tom Super, head of property and casualty insurance intelligence at J.D. Power.“The real challenge for insurers is pushing the envelope on digital innovation. Customers’ pace of expected change is accelerating, and insurers must be able to take steps to go beyond the basics of simply digitizing customer tasks. Those that can make this leap will be poised to separate themselves from the pack."
However, mobile app use increased 26% year-over-year, correlating with higher satisfaction.
“While most insurers are making it possible to perform basic functions online or via mobile, very few are delivering a markedly improved, highly personalized overall experience via digital, even though innovative firms are showing that it is possible to do that now," adds Michael Ellison of Corporate Insight, J.D. Power's partner in designing and fielding the survey.
