Digital claims reporting outperforms phone-based communications, according to a new J.D. Power study conducted in collaboration with Corporate Insight.

New features and mobile app refinements by auto and homeowners insurers has led to significantly higher customer satisfaction scores.

The J.D. Power 2024 U.S. Claims Digital Experience Study, released today, indicates overall satisfaction with the digital insurance claims process is 871 (on a 1,000-point scale), up 17 points from 2023.

Customer satisfaction scores were found to be highest when insurer mobile apps were used to report a claim; submit photos and/or videos; and receive updates from the insurer.

Insurers implemented an average of 6.75 updates to their mobile apps in 2023, with the most changes occurring in the claims function. The study found a total of 21 different changes were made to the claims functionality on insurance mobile apps during 2023, nearly double those in 2022.

“The digital channel has now surpassed traditional phone-based communication as the most satisfying way for insurance customers to submit a new claim,” said Mark Garrett, director of global insurance intelligence at J.D. Power. “After years of slow growth in the usage of digital channels for claims reporting, insurers’ investments into developing these tools and promoting usage have really paid off as more insureds than ever are using them. Auto and home insurers have finally gotten the digital formula right with streamlined reporting tools, proactive updates and well-designed apps. However, the industry still has some work to do when it comes to helping insureds navigate between digital and offline channels, which can sometimes create unnecessary friction in the claims process.”

While 84 percent of claimants say their insurer provided an easy digital communication process, just 39 percent said their insurer always responds in a timely fashion to emails and text messages.

Nearly 20 percent of customers say they used more than one channel when they had a question, a frustration point that reduces satisfaction by more than 100 points, the study found.

Among those who used more than one channel for the same topic, email, apps and phone calls are the most frequently cited.

Now in its fifth year, the study evaluates digital experiences among property/casualty insurance customers throughout the claims process, examining functional aspects of desktop, mobile web and mobile apps based on four factors: visual appeal; clarity of the information; navigation; and range of services.

“Property and casualty insurers made an average of 6.75 updates to their mobile apps in 2023, an increase from 5.72 in 2022, many of which augmented the resources provided to policyholders throughout the claims process,” said Michael Ellison, president of Corporate Insight. “The industry is reaching an important tipping point in which digital channels—particularly mobile apps—are the primary conduit to insurance customer engagement. This is particularly important as younger generations tend to be mobile-first. As technology improves, insurers can leverage mobile apps to offer a powerful customer experience at a pivotal juncture in the insurer-insured relationship.”

The 2024 U.S. Claims Digital Experience Study is based on 2,982 evaluations provided by auto or home insurance customers who filed a claim during the past 12 months and was fielded from May through September 2024.