The Institutes

The Auto and Home Insurance Industry’s Digital Growing Pains

 Thursday, December 8, 2022

 Claims Pages Staff

The auto and home insurance industry is in a period of rapid technological change, as customers seek out digital solutions to make claims, payments, and other transactions faster and more efficient. However, this digital transformation has not been without its difficulties. J.D. Power has recently released a report showing that the implementation of new digital technologies in the auto and home insurance industry is causing a number of growing pains.

The study, conducted by J.D. Power, evaluated the claims processes of over 10,000 customers who had bought auto and home insurance from the top 20 largest insurers in the United States. The study found that the customer experience was generally positive, but that there were still areas in which the process could be improved.

The biggest issue identified by the report was that customers are often unaware of their coverage options when it comes to making a claim. This can lead to confusion and frustration for customers who are already dealing with a stressful situation. The study also found that customers are often confused about the process for submitting a claim, with many not sure how to contact their insurer or how to go about filing a claim.

In addition, the study found that customers often have difficulties with digital tools used to manage their policy and claims. These tools can be difficult to use, and customers often have trouble understanding how to navigate them or understanding the information they are presented with. Furthermore, the study found that the customer service offered by some insurers is lacking, with many customers reporting long wait times or being unable to reach an agent when they needed help.

Despite these issues, most customers reported being satisfied with the overall claims process. The study also found that most customers felt their insurer was willing to work with them to resolve their claim. However, customers did report a general lack of trust in the industry overall, with most feeling that insurers prioritize their own interests over those of their customers.

Overall, the study shows that there is still room for improvement in the auto and home insurance industry’s digital transformation. Customers need to be more informed about their coverage options and the process for submitting claims, and insurers need to ensure that their digital tools are easy to use and that their customer service is up to par. If these issues can be addressed, then the auto and home insurance industry’s digital transformation can be a success.