• by Tanya Gazdik , May 21, 2024

The surge in auto insurance rates and the increase in comparison shopping has put pressure on carriers to up their digital game, according to the 2024 U.S. Insurance Digital Experience Study from J.D. Power. 

The results show that as digital channels become critical to the overall shopping and service experience, a strong majority of sites and apps are delivering foundational functional capabilities. 

This stands out considering sharp declines in satisfaction seen across other areas of the auto insurance industry. In fact, data shows satisfaction is highest when customers have digital-only interaction with insurers -- and that digital channels bring in more customers than agents and call centers. 

More than half (53%) of first-time buyers start their relationships with auto insurance providers through digital channels, compared with 29% who come in through agents and 18% who come in through call centers. 

Similarly, digital is the first choice for 42% of switchers and 46% of retained customers. All of these have grown significantly during the past four years.

In the two specific segments, service and shopping, overall satisfaction dropped. It went from 702 to 698 in the service segment and 521 to 516 in the shopping segment.

Progressive ranks highest in the service segment with a score of 737. American Family (717) ranks second and Nationwide (716) ranks third.

Auto Club Group (AAA) ranks highest in the shopping segment with a score of 546. Auto Club of Southern California (AAA) (536) ranks second and Erie Insurance (533) ranks third.

The 2024 U.S. Insurance Digital Experience Study is based on 11,086 evaluations and was fielded in January-March 2024.

The study examines the digital consumer experiences of both property and casualty insurance shoppers seeking quotes and existing customers conducting typical policy-servicing activities. It examines the functional aspects of desktop, mobile web and mobile apps based on four factors: navigation, speed, visual appeal and information/content. 

It was conducted in collaboration with Corporate Insight, the provider of competitive intelligence and user experience research to the financial services and healthcare industries.