P&C Insurer Digital Investments Not Enough to Offset Rising Rates, J.D. Power Finds
The streamlined user experience, seamless customer support and improved navigation that was supposed to define the digital transformation of the property and casualty (P&C) insurance industry-and improve customer satisfaction-has been overpowered by rising rates. According to the J.D. Power 2022 U.S. Insurance Digital Experience Study,SM released today, overall customer satisfaction with insurers' digital offerings declines this year, despite significant investments in customer-facing websites and mobile apps.
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J.D. Power 2022 U.S. Insurance Digital Experience Study (Graphic: Business Wire)
"Although insurers keep upping the ante on technology, improvements are being offset by frustration among customers who are going online to shop for a better rate-and not finding one," said Robert M. Lajdziak, director of insurance intelligence at J.D. Power. "We're also seeing a clear trend in which more than half of digital insurance shoppers are choosing not to use digital tools or educational resources to help them through the shopping process. This further exacerbates the decline in customer satisfaction."
The study, which was redesigned this year, evaluates digital consumer experiences among both P&C insurance shoppers seeking quotes and existing customers conducting typical policy-servicing activities. The study examines the functional aspects of desktop, mobile web and mobile apps based on four factors: ease of navigation; speed; visual appeal; and information/content. The study was conducted in collaboration with Corporate Insight, the leading provider of competitive intelligence and user experience research to the financial services and healthcare industries.
"While insurers are spending a great deal on tech on an industry-wide basis, we're seeing very uneven execution between brands, particularly in the area of mobile apps, where the top performers are really breaking new ground, but the bottom performers are keeping overall customer satisfaction scores low," said Michael Ellison, president of Corporate Insight. "We're also starting to notice some noteworthy year-over-year volatility among the brands in the study, which shows that smart investments in good technology can drive rapid performance improvement."
Following are key findings of the 2022 study:
Safeco ranks highest in the service segment with a score of 738. State Farm (733) ranks second and Progressive (725) ranks third.
COUNTRY Financial ranks highest in the shopping segment with a score of 525. Auto Club of Southern California (517) and Auto-Owners Insurance (517) rank second in a tie.
The 2022 U.S. Insurance Digital Experience Study is based on 10,671 evaluations and was fielded in February-March 2022.
For more information about the U.S. Insurance Digital Experience Study, visit https://www.jdpower.com/business/insurance/us-insurance-digital-experience-study.
See the online press release at http://www.jdpower.com/pr-id/2022055.
About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.
J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at JDPower.com.
About Corporate Insight
Corporate Insight delivers competitive intelligence, user experience research and consulting services to the nation's leading financial and health institutions. As the recognized industry leader in customer experience research since 1992, CI has been the trusted partner to corporations seeking to improve their digital capabilities and user experience. Their best-in-class research platform and unique approach of analyzing the actual customer experience helps corporations advance their competitive position in the marketplace. To learn more, visit http://www.corporateinsight.com.
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