The Bad News About High Auto Insurance Customer Satisfaction

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Record high customer satisfaction among auto insurance customers is clearly good news for customers, especially at a time when their overall customer experience is being tested by the rising cost of auto insurance. For insurers, on the other hand, record satisfaction is creating new challenges, as customers’ expectations create the need for new standards for service by insurers.
These challenges include meeting the ever-evolving expectations for digital channels and services that provide easy online processes similar to those offered by Amazon and Uber. An additional challenge in a market where fewer shoppers are increasing the number of new customers who purchase high-quality auto insurance for the first time with their current carriers, creates a premium increase.
J.D. The Power 2018 US Auto Insurance Study examines how insurance companies change their competitive satisfaction with customer insurance companies and how customer expectations change, helping insurance companies tackle the challenges ahead. One of the key elements of high satisfaction is online access to self-service tools through insurer websites and / or mobile applications. However, even though greater access to information and self-service options is a primary driver of satisfaction, the industry is looking for a version of the mobile check deposit that transforms the way customers interact digitally with their banks. J.D. The Power 2018 Insurance Digital Experience Study also revealed that leading insurance companies, digital leaders, Amazon, Starbucks and Uber, as well as others, are significantly lagging behind in meeting customer expectations for a streamlined digital experience.

High Satisfaction Record for Low Shopping

Considering that the industry is facing increasing costs and customers are experiencing more than one year growth rate, high satisfaction record may seem against the competition. The US Auto Insurance Survey measures customer experiences among several factors. While the price is an important part of the overall customer experience, when billing and payment, policy bids and online and offline service interactions are combined, the majority of experience (67%) is evolving through digital interaction.

As customers’ satisfaction with their auto insurers increases, there is a corresponding decline in their intention to shop for a different insurance company. At the same time, there is a measurable relationship between customer satisfaction and actual shopping rates for the next year, which is J.D. It was measured in the Power Insurance Shopping Study.

While only 2 percent of new customers enter personal lines and enter the auto insurance market in 2018, most of the insurance companies face a zero-sum offer, which is exponentially more difficult and costly, with the growth and growth of their companies, and the satisfaction and retention of their customers. High.

Insurers will be able to develop a retention strategy based on value-to-price values ​​through customer interactions, while helping them to grow with new customers in the market, while making fewer purchases and potentially leading to an increase in their referrals.
Greater Access to Information Delivering High Satisfaction

The US Auto Insurance Study also measures and monitors the Core Performance Indicators (KPIs), which have the largest relationship with customer satisfaction. Providing online access to policy information is the only KPI with the largest and most consistent improvement over the past seven years. (Figure 3)

Online access itself is associated with higher customer satisfaction, but also indirectly affects customer satisfaction in a variety of factors, from billing and from payment to claims. Customers who are highly engaged online are more likely to be aware of other best practices offered by their insurers. However, they should only have a low awareness of offline customers, such as creating billing alerts.

Furthermore, in the case of a request by a customer, those who already made an account online were twice as likely to present event photos through the application; get digital updates without having to call insurers; and J.D. Power 2017 Auto Claims According to the study, it is three times more likely to report the first loss notification (web or app) online.

Digital Satisfaction Healed, But Waiting For More

Customers prefer digital self-service channels for various interactions with their auto insurers. The most powerful digital preferences are for low-value transaction activities, such as making payments or proof of insurance cards. Even in Gen Y (those born in 1977-1994), customers prefer to speak with professionals when discussing policy coverage or premium changes.

Although it is still a long way to meet customer expectations set by insurance companies for other sectors and leading digital companies, it has been a significant development since 2012, leaving behind channels and telephone channels in digital insurance channels. (Figure 4)

Despite the insurers’ advances in digital channel experience, the demand for powerful digital self-service options is a high-achievable bar. J.D. The 2017 United States Insurance Digital Experience Study also reveals that leading insurance companies, digital leaders, Amazon, Starbucks and Uber are, among others, dramatically behind. Digital work finds that insurance companies are doing a good job of creating an attractive user interface, but lacking insurance-specific capabilities that create the convenience of doing business for customers.

Insurers with the highest performance in personalization do so by arranging insurance offers and customer needs; to offer benefits that are appropriate to certain risks; and provide timely guidance. In addition, the Insurance Digital Experience Study tends to have the highest digital satisfaction scores.

The example of personalization is Bank of America, which uses Artificial Intelligence (AI) to personalize mobile experiences with kişisel Erica kişisel, a virtual assistant within the application, to offer client-specific financial advice. Erica quickly surpassed one million users in one month. Although insurance is a much lower touch than retail banking, the same technology can be an opportunity to empathize with digital claims. This is a significant point of suffering among customers who nowadays provide digital demands, as outlined in the 2018 US Automated Claims Study. .
Future Expectations

With respect to meeting future customer expectations, winners and losers will be identified by insurance companies that have made a major breakthrough in customer experience to look at leaders in specific areas of the customer experience (such as billing and payments, digital and problem solving). Identify the best practices for translation among industries. An analysis of sector leaders, which is often outside the insurance industry and which is outside the insurance industry and due to the low touch nature of the business, can create insight that can lead to a competitive advantage in the insurance industry. Insurance companies can even adapt insurance companies to best practices for insurance-specific problems, such as claims, to use in the event of a power outage.

Insurance customers rarely compare their experience with their insurers and another insurance company, but instead compare it with dozens of other companies where they do business.

Despite the high level of auto insurance customer satisfaction, insurance companies have an incredible opportunity to raise the bar on existing industry leaders by adopting an outside approach to rediscover customer interactions that simplify the process of doing business.

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