J.D. Power Study Reveals Digital Claims Update Gaps Impacting Customer Retention

A recent J.D. Power 2025 U.S. Claims Digital Experience Study highlights a significant gap in digital communication within the insurance claims process, with insurers providing timely digital updates only 22% of the time. Digital management of claims markedly increases customer satisfaction, yet many policyholders must still resort to offline channels to complete key steps. This disconnect potentially threatens customer retention; over half of customers dissatisfied with their digital claims experience consider switching insurers, whereas less than 5% of those satisfied with digital interactions do so. Despite industry's decade-long push for digital-first claims reporting and tracking, only about a third of customers currently receive status updates directly via mobile apps—the channel associated with the highest satisfaction scores. Most communications still occur through traditional methods like email, phone calls, or text messages, leading to friction and duplicated efforts as customers seek comprehensive information. The study identifies critical points in the claims workflow where customers transition between channels to obtain detailed explanations or status details, suggesting insurers have opportunities to streamline the process. Developing a proactive, end-to-end digital claims journey that anticipates customer needs can enhance both satisfaction and brand loyalty. Evaluating the digital experience across desktop, mobile web, and mobile apps, the study assesses insurers on the range of services offered, ease of use, clarity of information, and channel helpfulness. The 2025 redesign of the study incorporates nearly double the sample size of previous years, drawing on feedback from 5,958 auto and homeowner insurance customers who recently filed claims. This analysis underscores the imperative for insurers operating in property and casualty insurance sectors to advance digital solutions that minimize multichannel navigation and improve the clarity and timeliness of information delivery. Enhanced digital claims management can influence retention and competitive positioning within the U.S. insurance market.