Insurers Struggle to Manage Expectations in Auto Claims Process as Repair Times Increase

The times have not been kind to the auto insurance industry. The volume of vehicle collisions is returning to pre-pandemic levels and, when combined with all-time-high repair costs, historic backlogs in repair shops and limited replacement parts availability, it is costlier and more time-consuming than ever to get customers’ vehicles back on the road after a collision. Today, the J.D. Power 2022 U.S. Auto Claims Satisfaction Study^SM adds another dour fact to the mix: customer satisfaction has declined 7 points (on a 1,000-point scale) from 2021 as customers start 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,” said Mark Garrett, director of global insurance intelligence at J.D. Power. “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. There is one bright spot in the study: insurers that focused on managing timing expectations, were quickly available and responsive to customers and that provided multiple digital options for status updates were able to outperform the industry—with some even improving year over year."

Click here to read the press release, including full rankings and additional key findings from the 2022 studies.