More than half of auto insurance customers, 57%, are actively shopping for new policies and using digital channels as the primary tools to purchase insurance, according to the J.D. Power
Forty-seven percent of auto insurance shoppers now purchase policies via a digital channel, like websites and apps.
Eric McCready, director of digital solutions at J.D. Power,
"The primary communications conduit customers now have with their auto insurer is a website or an app, so that's really ramped up pressure on insurers to put their best foot forward on digital properties. Some insurers are doing this much better than others. Particularly in quoting new policies and comparing prices and coverages, the data shows a stark divide between top and bottom performers, which could have serious effects on new business growth during this period of heightened shopping activity."
The U.S. Insurance Digital Study evaluates consumer experiences of property and casualty insurance shoppers seeking quotes and other servicing activities on desktop web, mobile web and app. The study was conducted with Corporate Insight. It is based on 11,529 evaluations and was fielded January through March.
Thirty-five percent of policyholders are purchasing policies through agents and 17% via a call center.
The study suggests that there is a gap in digital experiences in quote-related functions. Customer satisfaction with top insurers is 539 (on a 1,000-point scale) and is 453 with the lowest performing insurers.
Justin Suter, research manager at Corporate Insight, said in a statement: "Across both shopping and servicing functions, delivering a seamless digital experience is a win-win for insurers. Customers have shown that they want to interact with their insurers digitally, and when insurers deliver a good experience, they tend to stay on the digital channel, which delivers a better all-around experience at a lower administrative cost for the insurer."
Nationwide ranked highest in servicing with 730. Amica ranked second with 724. American Family and Progressive tied for third with 715.
Amica and Erie Insurance were tied with 559 for shopping and third was American Family with 556.
