Digital claim reporting dropped in 2022, and it’s a ‘worrying sign’ for insurance companies. That is according to JD Power.

Increasing cycle times have made it harder for insurers to keep customers up to date on their claims through digital channels, while an increase in severity has driven down digital claims, Mark Garrett, director, insurance intelligence at JD Power has warned.

Furthermore, according to Garrett, this could be a sign that the tools are ‘not meeting customer needs’.

‘In fact, this is the first year JD Power has ever seen declining use of digital claims reporting, digital use as a primary channel for status updates and for submitting photos that were used for the estimate,’ Garrett said on the release of JD Power’s 2023 US Property Claims Satisfaction Study.

Insurers have faced up to a costly year, with major catastrophe losses and inflation posing a financial headache; JD Power said it was the worst year financially for homeowners’ carriers in a decade.