Property insurers are looking at another ‘worrying sign’

Moreover, according to Garrett, this may be a sign that the tools are “not meeting customer needs.”

Garrett said upon the release of J.D. Power’s 2023 US Real Estate Claims Satisfaction Study.

A costly year for insurers — and a painful one for some clients

Even insurers faced a costly year, with catastrophic losses and inflation posing financial headaches; JD Power said it was the worst financial year for homeowner moving companies in a decade.

Natural disasters – such as wildfires in California and Hurricane Ian in Florida – have created an avalanche of severe property claims. Cat losses for 2022 were $115 billion.

For struggling landlords looking to get back on track, digital technology may not deliver. Meanwhile, supply chain issues are lengthening the claims cycle.

Whether it’s downhill or uphill [in digital reporting]The big voice of customer feedback we got here is, “If I told you, I prefer talking to people, and you tried to convert me to a digital channel, you would find I’m not very satisfied because you didn’t meet me where I wanted to meet in my experience, and that’s the biggest barrier to satisfaction,” Martin said. Illingsworth, CEO of JD Power, P&C Insurance Intelligence, for Insurance Business.

There is also the issue of whether more serious claims can be managed with digital footprinting, with elements such as hidden damage not necessarily assessable from a photograph. Policyholders may believe they have provided what the insurance company required, only to be told that further evaluation is needed.

“Resetting expectations, getting out of the process of connecting with the right people, and then setting a clear path forward about what happens next, that just burns the time of the clock and frustrates people,” Illingsworth said.

There is a “silver side,” says Illingsworth. Customers who want a digital number and have a claim that can be dealt with using such tools have usually been very satisfied.

However, he said, “Trying to force a digital experience on an analogue desire is just a really bad bet.”

Which insurance companies ranked first for property claims satisfaction?

Erie Insurance ranked first in J.D. Power’s 2023 US Property Claims Satisfaction Study. Out of 1,000, the top 10 insurance companies in the overall customer satisfaction index ranking were:

Do insurers need to rethink their digital-first approach?

Digital tools may be “stretchy,” according to J.D. Power, but that shouldn’t make insurers rethink their use.

Instead, they should “double up the customer first approach”.

“You can listen to what customers say they want and then adapt digital tactics to the different tasks in the operation, and that may be the best practice,” Ellingsworth said. “[Customers should have access to] People when you need them and robots when you want them.”

Speaking from a customer’s point of view, Ellingsworth said: “When I get a status update, you don’t need someone to call me at all times for that – you can text me, you can email me, you can do a bunch of different activities to give me an update.” .

“But if I have a problem, I need to ask more questions. Digital channels aren’t necessarily flexible when it comes to being off the menu.”

What are your thoughts on the digital journey of the insurance industry? Share it below.

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