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Digital Strong for New Auto Insurance Business

Study finds many first-time shoppers make their first contact online, though insurers’ digital channels have much room for improvement.

May 21, 2024
Digital Strong for New Auto Insurance Business

Satisfaction with digital-based property and casualty insurance shopping was 516 on a 1,000-point scale, a slight dip of five points year-over-year, compared to a 12-point drop on satisfaction with auto insurers generally.

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2 min to read


Auto insurer digital channels draw more new customers than other means, according to a new study, which found that consumers’ overall satisfaction with the experience is strong.

The J.D. Power study shows 53% of first-time auto insurance purchasers start the process digitally, while 29% make contact through agents and 18% do so through call centers.

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“When you consider the sharp declines in customer satisfaction we’ve been seeing across all aspects of the auto insurance industry during the past year, digital channels have been remarkably resilient when it comes to delivering a good user experience and helping to get customers and prospects the information they need,” said J.D. Power Senior Director, Insurance Business Intelligence Stephen Crewdson.

“However, many insurers still have work to do when it comes to keeping customers on their websites and apps to answer all questions and provide critical information. Customer satisfaction plummets when users of digital channels need to pick up the phone and contact the call center if they can’t find what they need online.”

More than 11,000 consumers responded to the study, which J.D. Power conducted in the first quarter.

It found that satisfaction with digital-based property and casualty insurance shopping was 516 on a 1,000-point scale, a slight dip of five points year-over-year, compared to a 12-point drop on satisfaction with auto insurers generally in its most recent findings. Satisfaction proved highest in digital-only engagement for the initial interaction.

There is ample room for improvement, though. Survey results showed that 72% of consumers said auto insurer digital channels provide foundational shopping experiences, but just 4% found they deliver more advanced ones.

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Auto Club Group ranked highest in digital shopping with a score of 546, followed by Auto Club of Southern California with 536, and Erie Insurance with 533. On service experience, Progressive topped the list at 737, American Family second at 717, and Nationwide at 716.

DIG DEEPER: Car Insurance Skyrockets

 

 

 

 

Originally posted on Auto Dealer Today

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