J.D. Power: Insurers aren’t providing ‘adequate’ claim updates
U.S. auto and home insurers have spent the past decade encouraging customers to submit claims and manage estimate and status updates through their mobile apps and websites. However, the results of a new study from J.D. Power show customers are still going offline to manage the claims process.
“Across the insurance claims workflow, from first notice of loss to the estimate and ongoing status updates, customer satisfaction scores are highest when customers are able to manage the process via their insurers’ digital apps and websites,” said Mark Garrett, J.D. Power’s director of global insurance intelligence, in a press release.
“However, the study reveals several key moments in the claim journey when customers need to move across channels to get more detailed explanations from claim representatives or seek status updates. The more insurers can anticipate the information customers will need and proactively deliver it digitally, the more satisfied — and brand loyal — their customers will become.”
According to the 2025 U.S. Claims Digital Experience Study, while customer satisfaction surges when the claims process is managed digitally, insurers only deliver adequate digital updates 22% of the time.
“Receiving adequate digital updates is one of the top drivers of customer satisfaction with the digital insurance claims process,” J.D. Power says. “Overall satisfaction scores are highest when customers receive status updates via their mobile apps. However, just 36% of auto insurance customers and 31% of homeowners insurance customers currently receive status updates this way. Most customers still receive updates via email, calls from insurer claim staff, or text messages.”
Among auto and homeowners insurance customers who rate their digital claim experiences as “poor” or “just OK,” 52% are likely to leave or not renew with their current carrier. In comparison, 4% of those who rate their digital experience as “excellent” or “perfect” are at risk of attrition.
“Insurer websites and mobile apps are largely delivering on customer expectations, but there are still a few key areas where customers end up hunting for information and need to repeat steps unnecessarily,” said Kristen Coffin, J.D. Power’s digital solutions analyst, in the release. “There is a real opportunity for insurers to create a complete end-to-end digital experience that anticipates customer needs more proactively.”
J.D. Power’s Q3 Insurance Shopping Loyalty Indicator and Shopping Trends (LIST) report showed that carrier switching rose to 4.5% during the quarter, up 0.3 percentage points quarter-over-quarter (QoQ) and year-over-year (YoY). Among those who switched, the average amount of premium moving carriers is more than $4,500.
Shopping increased only slightly, by 0.2 percentage points QoQ and no change YoY.
“The auto insurance market from 2021–2024 saw historic rate increases, which drove many consumers to shop but those consumers could not always switch, as it was difficult to find a more competitive premium for auto insurance when most or all insurers were increasing rates,” said Stephen J. Crewdson, J.D. Power’s managing director of Global Business Intelligence – Insurance.
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