Property and casualty (P&C) insurance companies have shown marked improvement in many of their digital offerings—particularly mobile self-service functionality—but still have work to do to meet customers’ rising expectations. According to the J.D. Power 2019 Insurance Digital Experience Study,SM released today, specific areas where insurers come up short when compared with mainstream digital consumer companies are with ease of shopping and servicing their policies, household-level policy management and inconsistent use of social media.
“Digital has become so important to the modern insurance company by delivering two essential characteristics consumers seek from carriers: ease and accessibility,” said Tom Super, Vice President Property and Casualty Insurance Intelligence at J.D. Power. “In many cases, mobile apps and insurer websites are the primary faces of these consumer brands. As consumer behavior continues to evolve, insurers must keep pace as part of their overall distribution strategy or run the risk of irrelevancy.”
The study, now in its 8th year, evaluates digital consumer experiences among P&C insurance shoppers seeking quotes and existing customers conducting typical policy-servicing activities. The study examines the functional aspects of websites and mobile apps based on five factors (in order of importance): ease of navigation; appearance; availability of key information; range of services; and clarity of the information. The study was conducted in partnership with Centric Digital, the leader in digital intelligence and includes Centric Digital’s DIMENSIONSTM measurement of insurers’ digital strengths, weaknesses and overall digital maturity.
Following are key findings of the 2019 study:
- Mobile apps gain traction as preferred account servicing channel: Satisfaction with account servicing experience is higher among customers who use the mobile app channel than among those who use a desktop or smartphone website to interact with their insurance company. Overall satisfaction with mobile app service experience is 12 points higher (on a 1,000-point scale) than last year. Currently, 74% of insurance companies evaluated in the study offer the ability to access and manage policy and claims information via a mobile app.
- Insurers’ digital maturity stunted by lack of resourcefulness: While most companies’ websites are highly responsive and meet brand standards, they fall short on delivering the types of expanded self-service tools, integrated digital communications functionality and contextual insurance information that would put them on par with leading websites in other industries.
- Watch for insurtech partnerships in the months and years ahead: Insurtech start-ups are affecting the traditional insurance marketplace by providing customer-centric digital solutions and money-saving process efficiencies for insurers. Many traditional carriers, such as Nationwide, American Family and Allianz, have already partnered with insurtech start-ups—and more collaboration is expected.
“It cannot be overstated how important it is for brands to deliver digital experiences that meet or exceed cross-industry consumer expectations,” said Peter Smith, Chief Strategy Officer at Centric Digital. “This measurement and analysis show there are still many opportunities for P&C insurers to improve the consumer digital experience. While we’ve seen improvement over the past year, many insurers still have a long way to go when it comes to delivering world-class digital experiences.”
GEICO ranks highest in the service segment with a score of 874. Allstate (862) ranks second and Farmers (857) ranks third.
MAPFRE Insurance ranks highest in the shopping segment with a score of 811. Progressive (803) ranks second and Erie Insurance (798) ranks third.
The 2019 Insurance Digital Experience Study is based on 11,151 evaluations and was fielded from January through March 2019.
For more on the Insurance Digital Experience Study, visit https://www.jdpower.com/business/resource/us-insurance-digital-experience-study.
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, South America, Asia Pacific and Europe.
Centric Digital provides industry leading solutions to measure and navigate digital transformation. Powered by proprietary platform DIMENSIONS™, Centric Digital has benchmarked hundreds of brands, designed multi-year transformation strategies, unlocked and managed $2+ billion of investment roadmaps. Centric Digital is headquartered in New York City, with offices in Chicago and Mendoza, Argentina. Visit centricdigital.com to learn more.