Claims – Digital Claims Aren’t Working that Well

J.D. Power’s latest claims satisfaction report is titled the J.D. Power 2023 U.S. Property Claims Satisfaction Study. It isn’t going to be all that satisfying for insurers using digital tools for claims processing.

The problem with filing claims digitally for homeowners is the speed with which the claims are taken care of by the insurer. This is even more true when the claim is tied to some kind of a catastrophe.

The research company calls the report’s results, “worrying.”

Currently the average time from claim filing to finished repairs is 22 days. That is four days longer than it was last year. It’s a week longer than it took in 2021. Insurers blame supply-chain problems for the delays.

Mark Garret is the director of insurance intelligence at J.D. Power. He says the tools insurers use for those claims are just as much to blame.

“The longer cycle times have made it increasingly difficult to keep customers informed via digital channels and limit their need to contact their insurer with questions,” Garrett said. “Satisfaction among customers who need to primarily call their insurer for updates includes some of the lowest scores compared with other update methods.”

He also pointed out that customers that would rather speak to a person than go through texting or other channels, tend to give lower scores than those that don’t. Claims filed for catastrophes are usually filed by means other than digital since digital tools work best for claims that are less severe.

In addition, Garrett said J.D. Power has found a big decline in digital claims reporting, status updates and photo submissions for claims. “This is a worrying sign for the industry, as digital tools are apparently not meeting customer needs,” Garrett said.

Here’s how the insurers ranked in the study. As you can see, in the 1,000 point rating, the industry average is 874.

Erie Insurance — 912

Amica — 903

Nationwide — 884

The Hartford — 883

Chubb — 880

State Farm — 880

American Family — 875

Industry average — 874

Farmers — 873

Liberty Mutual — 870

Allstate — 868

Travelers — 867

CSAA Insurance Group (AAA) — 863

Safeco — 857

Auto-Owners Insurance — 853

ASI Progressive — 851

Automobile Club of Southern California — 842

Homesite — 815

USAA — 906

Source link: Insurance Journal —

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