Customer satisfaction with the auto claims experience is heavily influenced by the perceived effort required throughout the claims process. When any part of the claims process is viewed as high effort, overall satisfaction drops significantly, and one-third of customers report that some portion of their claim required high effort to resolve.
*Includes estimation, rental, repair, communicating, and overall claim process (“high” defined as 4 or 5, “medium” defined as 3, “low” defined as 1 or 2); those who said “don’t know” to all effort questions are excluded from the analysis”
Source: J.D. Power 2024 U.S. Auto Claims Satisfaction Study
An examination of the key areas that were contributing to high effort showed the most notable decline in satisfaction occurs when communication with the insurer is deemed high effort, with a reported drop of more than 200 points (on a 1,000-point scale) compared to cases where communication is low effort.
Impact is defined as the difference in Overall Satisfaction (pts.) between those who say the item is “high effort” vs. “low effort.”
Source: J.D. Power 2024 U.S. Auto Claims Satisfaction Study
We typically observe increasing issues with Communication as the total length of the claim process extends, so not surprisingly, effort is heavily influenced by the total amount of time the claims experience lasts—from a customer reporting their claim to either receiving their repaired vehicle back or receiving payment for their total loss. In fact, the amount of customers exerting high effort more than doubles when comparing claims finishing in less than a week (22% report high effort) versus those that extend to 30 days or longer (48% high effort). Furthermore, those exerting high effort on long-tailed claims have notably lower satisfaction at only 492, with customers being particularly critical of the Dimensions: Communication (426) and Time to Settle their Claim (390).
Source: J.D. Power 2024 U.S. Auto Claims Satisfaction Study
Communication Breakdown
Issues with communication often stem from not being kept informed adequately throughout the claim, which often leads to the customer needing to initiate contact. In fact, nearly 40% of those exerting high effort report making 4 or more contacts to their insurer throughout the claim. These customers are more likely to cross channels as well, sending emails and texts in addition to calls. This failure to communicate is exacerbated in longer-tailed claims where it is more likely customers will need to reach out to ask questions in the absence of proactive updates.
Source: J.D. Power 2024 U.S. Auto Claims Satisfaction Study
Unfortunately, multiple contacts can often lead to further issues as a frequent complaint is a failure to receive follow-up in a timely fashion. In examining the underlying legacy attributes, low ratings for Responsiveness of staff proved to be one of the biggest drivers of perceived effort from customers. Those reporting high effort are only half as likely to state they always received timely follow-up in multiple channels compared to low effort customers.
Communication Throughout the Claim is Critical to Reducing Effort
To reduce customer effort and improve satisfaction, insurers should focus on several actionable strategies:
By focusing on these strategies, insurers can minimize the effort required from customers during the auto claims process, ultimately boosting satisfaction and fostering loyalty.
About the Author: Mark Garrett is a Director for the Insurance Intelligence Practice at J.D. Power. His primary focus is on Auto and Property claims, including the digital experience. He works with many of the top 30 insurance carriers consulting on study findings and advising on opportunities to improve the customer experience.
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