Insurers’ websites need major upgrades, policyholders say

A survey of 500 US insurance consumers found that only 17% think their insurer’s website is “excellent”, which the survey organization says should be a “warning” to the industry.

Insured.io, a provider of SaaS solutions for insurers, asked consumers about customer experience features, including claims and carrier websites and apps.

© Anita Martin Photography 2020

“The impact for carriers, particularly mid-sized carriers, is significant as younger generations increasingly dominate the insurance market,” Steve Johnson, co-founder of insured.io, said in a written response to questions. “The survey shows that consumers, especially those between the ages of 26 and 45, value a quality digital experience when interacting with their insurance companies on the same level as that carrier’s brand reputation.”

When asked about their reasons for considering switching insurers, 53 percent of respondents cited claims processing friction, according to Johnson. Another 31% said a poorly performing website or mobile app was a reason to switch. This “further highlights the industry’s challenges in delivering a seamless digital experience,” he said.

Insured.io’s survey found that consumers under 45 view the portal or app experience as twice as important as consumers over 45. Among all ages surveyed, 81% prefer to use portals or apps for routine tasks, 74% prefer to use them for politics. renewals, 55% for purchasing new insurance and 50% for filing claims.

“Think for a moment how much time and resources are invested in brand reputation in our industry,” Johnson said. “Operators that fail to offer robust digital platforms such as user-friendly websites, mobile apps and real-time updates risk losing customers to competitors who do, as the survey indicates that consumers rank the quality of a online portal as well as a company’s brand or reputation when choosing an operator.”

The survey also found that an automated service that could show insurance customers the progress of their claim and payment would be a draw for switching carriers, with 59% of respondents saying so.

“Carriers should see these findings as a strong incentive to improve their digital offerings, streamline claims processes and invest in technologies that reduce frequency in customer interactions,” says Johnson. “By addressing these areas, carriers can improve customer satisfaction, reduce churn and gain a competitive advantage in an increasingly digital marketplace.”