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Insurers are seeing improvement in customer satisfaction with the property claims process this year, according to a new JD Power study.
Overall property claims customer satisfaction for the industry rose 20 points, to 702 on a 1,000-point scale. Among individual insurers, Amica, The Hartford, Chubb, Liberty Mutual and Nationwide had the highest satisfaction scores.
Faster repair and payment cycle times as well as enhanced digital capabilities helped boost scores, the study said.
According to the study, the average amount of time required to complete a repair is 29.6 days, down 2.8 days from last year. The average amount of time before customers receive final payment is 40.7 days, down 3.4 days from last year.
Customers are using digital tools at various points in the claims process, including reporting the loss (38%), submitting photos to estimate or pay the claims (49%) and receiving updates on their claim (45%). Satisfaction levels are higher among those using digital tools for these interactions than among those not using the tools.
A relatively calmer weather year last year, with no landfall hurricanes in the United States, also helped create a more stable claims experience for customers.
The improvements helped to offset customer dissatisfaction around premium increases, the study said.
"There was no shortage of headwinds to customer satisfaction with the property claims experience this year, particularly when it comes to the financial burden customers face, but carriers were really able to counter the negative effects of higher prices by delivering exceptional service," said Mark Garrett, director of insurance intelligence at JD Power, in a statement. "Despite the industry-wide improvement, however, customer expectations are not always met, with almost one in five customers indicating their experience was not great, so there is still work to do."
Among customers, 19% said they experienced a combination of insurer-initiated premium increases, out-of-pocket expenses and a deductible of $1,000 or more during the claims process.
The American Property Casualty Insurance Association said the study's results reflect the industry's continued commitment to policyholders.
"Helping individuals, families, and businesses recover after a loss is at the core of our industry's mission," said David A. Sampson, APCIA president & CEO, said in a statement. "The JD Power study underscores insurers' commitment to being there for our policyholders when they need us most by providing a fast, efficient, and transparent claims experience."
Credit: SewcreamStudio/Adobe Stock
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