Enhancing Digital Claims Experience in Insurance: Insights & Strategies
Insurance companies in the United States increasingly guide policyholders towards digital platforms like apps and web portals for claims management. However, findings from the J.D. Power 2025 US Claims Digital Experience Study reveal that many customers revert to traditional communication methods, such as phone calls, at certain stages for detailed explanations and claim status updates.
The study highlights that claimant satisfaction peaks when the entire claims process—from initial notification to updates and estimates—is managed digitally. Yet, points in the progression see customers transitioning offline, underscoring a demand for direct interaction with representatives. This shift highlights the importance of seamless and integrated digital pathways to enhance user satisfaction and loyalty.
This development is crucial for insurers, particularly within the commercial auto industry, where underwriting losses are a significant concern. AM Best reports over $10 billion in net underwriting losses recently, marking 14 consecutive years of deficits. Such challenges press insurers to focus on cost management strategies that prioritize digital workflows and automation, aiming to reduce expenses while maintaining service quality.
Proactive digital updates are identified as pivotal to customer satisfaction, yet insurers currently meet this expectation only 22% of the time. Despite mobile apps yielding the highest satisfaction for status updates, usage remains limited, with only 36% of auto insurance clients and 31% of homeowners utilizing these tools. The prevalent reliance on emails, calls, or text messages indicates a gap in digital platform utilization.
Even as the industry pushes towards digital optimization, 22% of customers still engage multiple channels to resolve issues, revealing integration challenges across carriers' digital tools. Furthermore, J.D. Power's research links digital performance closely with customer retention. A subpar digital claims experience significantly increases the risk of policyholders switching carriers, unlike those with positive digital experiences.
This analysis presents an opportunity for insurers to enhance their digital offerings, ensuring a comprehensive, integrated experience that anticipates customer needs and minimizes redundancies in the claims process. By doing so, insurers can improve satisfaction, bolster retention, and achieve greater operational efficiency.