Reinsurance News

Rising rates killing digital transformation in P&C sector

8th June 2022 - Author: Pete Carvill

Rising rates have killed off the property and casualty industry’s digital transformation, according to JD Power.

Technology imageThe firm, in releasing JD Power 2022 US Insurance Digital Experience Study, says that customer satisfaction with insurers’ digital offering has declined this year despite the investment by firms in websites and mobile apps.

Robert M. Lajdziak, director of insurance intelligence at JD Power, said: “Although insurers keep upping the ante on technology, improvements are being offset by frustration among customers who are going online to shop for a better rate—and not finding one,” said.

“We’re also seeing a clear trend in which more than half of digital insurance shoppers are choosing not to use digital tools or educational resources to help them through the shopping process. This further exacerbates the decline in customer satisfaction.”

The firm said that its study found that overall customer satisfaction in this area has dropped sixteen points (on a 1,000-point scale) since 2021, while over customer satisfaction is down one point from the same time.

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Meanwhile, shopping tools to help customers buy and manage insurance products were only used by 46% of the respondents during their quote processes. The study also found significant gaps in mobile app performance.

The average satisfaction score among the top-performing 25% of respondents using a mobile app is 885—significantly higher than any other channel. However, satisfaction with the bottom 25% of respondents using a mobile app falls 358 points to 527.

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