Mobile app investments are paying off for insurance companies with increased customer satisfaction, according to the
The study, which evaluated the digital experiences of nearly 3,000 auto and home insurance customers throughout the claims process, was conducted in collaboration with Corporate Insight and examined the functional aspects of desktop, mobile web and mobile apps. Mobile apps yielded the highest customer satisfaction scores in claims reporting, submitting photos and videos and receiving updates from the insurance company.
"The digital channel has now surpassed traditional phone-based communication as the most satisfying way for insurance customers to submit a new claim," said Mark Garrett, director of global insurance intelligence at J.D. Power, in the news release. "After years of slow growth in the usage of digital channels for claims reporting, insurers' investments into developing these tools and promoting usage have really paid off as more insureds than ever are using them. Auto and home insurers have finally gotten the digital formula right with streamlined reporting tools, proactive updates and well-designed apps. However, the industry still has some work to do when it comes to helping insureds navigate between digital and offline channels, which can sometimes create unnecessary friction in the claims process."
The study shows that 84% of respondents say that their carrier offers an easy digital communication process, but only 39% say that their carrier responds in a timely fashion to emails and text messages. J.D. Power also found that 20% of customers used more than one channel when they had a question, which the study notes is a pain point that can reduce satisfaction by at least 100 points.
"Property and casualty insurers made an average of 6.75 updates to their mobile apps in 2023, an increase from 5.72 in 2022, many of which augmented the resources provided to policyholders throughout the claims process," said Michael Ellison, president of Corporate Insight. "The industry is reaching an important tipping point in which digital channels—particularly mobile apps—are the primary conduit to insurance customer engagement. This is particularly important as younger generations tend to be mobile-first. As technology improves, insurers can leverage mobile apps to offer a powerful customer experience at a pivotal juncture in the insurer-insured relationship."
