Consumer Auto Claims Satisfaction Dropping: J.D. Power & Associates

In contrast to a recent report on property claims, the consumer research firm finds that policyholders are more dissatisfied with auto claims than they have been in months.

Industry observers have lauded insurers for largely creating claims experiences that give customers little reason to complain. But a drop in satisfaction recently reported by J.D. Power & Associates reminds insurers of the need to stay vigilant in maintaining standards.

J.D. Power says that overall customer satisfaction with auto claims has declined 13 points on it's 1,000-point scale to 842, the lowest level in the past three quarters. This includes a 19-point drop in first notice of loss, 16 points in service interaction and appraisal, and 15 points in the repair process.

"Forty-seven percent of claimants delayed dropping off their vehicle at the body shop to wait for a more convenient time, and 20 percent indicated waiting for weekends or holidays," adds Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates, in a statement. "However, these customers tend to also have lower satisfaction as a result of having to wait an extra day and a half, on average, to get their vehicle to the shop compared to results from the prior quarter. This suggests insurers need to do a better job of managing customer expectations for claims processing and vehicle repair times."

[Read how big data can help differentiate the claims experience.]

Repair cycle time has increased about a full day since last quarter, J.D. Power says.

"This, in addition to customers waiting longer for a more convenient time, or the weekend, to bring their vehicle to the repair shop, has contributed to the overall lower satisfaction scores," Bowler adds.

[While auto claims satisfaction is struggling, property claims satisfaction is at a very high level, J.D. Power says. Read which insurer they found to have the best property claims experience.]

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio