Insurance Customers Embrace Digital Claims, Driving Satisfaction Gains

Insurance companies’ investments in digital tools are paying off, as customer satisfaction with digital claims handling has reached new highs. According to the J.D. Power 2024 U.S. Claims Digital Experience Study, satisfaction with auto and home insurance digital claims processes rose by 17 points from 2023, hitting 871 out of 1,000. Enhancements like automatic collision reporting, improved image uploads, and body shop selection features are leading the way.

Digital channels have now become the preferred method for submitting claims, outpacing traditional phone-based communication, said Mark Garrett, director of global insurance intelligence at J.D. Power. However, challenges remain in integrating digital tools with offline communication methods. Frustrations are evident among 20% of customers who use multiple channels to resolve a single issue, which can lower satisfaction scores by over 100 points.

The industry’s focus on improving digital offerings is clear: insurers made an average of 6.75 updates to their apps in 2023, up from 5.72 in 2022, according to Corporate Insight Inc. Despite these advancements, only 39% of customers felt insurers always responded promptly via email or text. Still, as mobile apps become the primary means of engagement, the digital claims process is set to become a cornerstone of customer experience.