According to the J.D. Power 2022 U.S. Auto Insurance Claims Satisfaction Study, customer satisfaction has declined 7 points from 2021 as they begin to lose patience with the claims process.
Insurers are in a tight spot with their own profitability strained and a host of external factors causing their customers to grow increasingly disillusioned with the entire claims experience.
The best way forward is for insurers to start focusing on carefully managing customers’ expectations and fine-tuning their digital engagement strategies to shepherd their customers through the process.
Overall satisfaction with the auto insurance claims process this year fell 7 points to 873 on a 1,000-point scale. While satisfaction is down across nearly all factors in the study, satisfaction with the repair process registers a 9-point year-over-year decline.
The volume of vehicle collisions is returning to pre-pandemic levels as well. This, combined with all-time-high repair costs, historic backlogs in repair shops, and limited replacement parts availability, is making it costlier and more time-consuming than ever to get customers’ vehicles back on the road after a collision.
The average overall satisfaction score among customers experiencing a repair cycle time greater than three weeks is 837, that score jumps 71 points to 908 when customers are provided with an accurate time estimate beforehand.
There is one bright spot in the study, noting insurers that focused on managing timing expectations were quickly available and responsive to customers, which provided multiple digital options for status updates where able.
Being empathetic throughout the process is key, especially for the longer-tailed claims that can create more effort for customers who have questions, need updates, and are trying to determine the next steps.