Insurance claim form. Photo: emiliezhang/ Adobe Stock
Eighty-three percent of insurance customers in the U.S. say they would drop their insurance company for a bad claims experience, according to a survey by InvoiceCloud.
Among consumers who filed a claim, 27% reported receiving payment more than a week after filing, the data showed, while only 10% received funds within hours to two days and 22% experienced a payment delay. Meanwhile, 40% ranked ‘time to receive payment’ as the top thing they would change above inconsistent communication.
“In moments of crisis, timing is everything, and supporting policyholders in critical moments defines an insurer’s reputation,” said Sarah Woodard, director of insurance product management at InvoiceCloud. “This study's findings highlight the critical role of timeliness, communication, and transparency with outbound claims.”
When access to funds is critical, especially during emergencies, consumers prefer fast, digital options, according to InvoiceCloud. Nearly half (49%) said online banking is the easiest way to access money, followed by bank withdrawals (20%). Fewer respondents rely on cash at home (15%) or mobile wallets (13%), though Millennials (18%) and Gen Z (20%) are more likely to prefer mobile wallets compared to Gen X and Baby Boomers.
Additional key findings from the survey include:
Consumers prefer direct deposit: 58% of consumers surveyed preferred direct deposit to receive claims payments, followed by printed checks at 20%. Digital wallets are preferred by 7% of consumers surveyed, the majority of those 7% being made up by Gen Z respondents.
Claims communication channels: Survey respondents indicated that phone (48%) remains the preferred communication channel during the claims process, followed by email (33%) and text (13%). Only 2% of respondents preferred direct mail.
Auto collision claims are most common: Three-in-five consumers surveyed have filed a P&C insurance claim, with auto collision coverage (24%) as the top reason, followed by water damage (16%) and wind and hail damage (16%).
Millennials top claims by generation: 44% of Millennials surveyed have filed a property or casualty (P&C) insurance claim, followed by 40% of Baby Boomers and 35% of Gen X.
(Photo credit: emiliezhang/ Adobe Stock)
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