Enhancing Customer Satisfaction in Insurance via AI and Digital Tools

A recent study by J.D. Power, focusing on the 2025 U.S. Claims Digital Experience, reveals that customer satisfaction peaks when AI-driven mobile apps are employed for status updates. Despite this trend, only a small portion of auto (36%) and homeowners insurance clients (31%) currently utilize these digital tools. Instead, communication is predominantly managed through emails, phone calls, or text messages, highlighting a gap in digital adoption.

The study, analyzing 5,958 auto and home insurance claims from December 2024 to August 2025, underscores a significant opportunity for the insurance industry. Despite ongoing efforts, merely 12% of policyholders leverage mobile apps for claims reporting, document submission, and tracking status updates. This gap indicates an unmet potential in streamlining claims processes through digital innovation.

Enhancing Digital Engagement

Furthermore, 22% of claimants resort to multiple communication channels to obtain responses, which suggests that current digital interfaces do not fully meet client expectations. Notably, 64% of users who initially reported claims digitally had to repeat information, causing frustration due to the inefficiencies of the digital platforms. For insurers and brokers, improving the integration of digital and traditional channels is essential for enhancing customer satisfaction and operational efficiency.

Regulatory and Technological Developments

In related industry developments, regulatory compliance requirements continue to evolve as state insurance regulators discuss revisions to an AI Systems Evaluation Tool, drawing mixed reactions. Eyeing technological advancements, insights from the University of Connecticut offer new perspectives on machine learning for insurance product standardization. As insurers navigate these evolving landscapes, they are encouraged to leverage digital tools to improve service efficiency, trust, and customer engagement.