Survey: Pandemic Raised Bar for P/C Insurers' Online Service, Shopping Experience

Significant investments in direct-to-consumer website and mobile design have helped property/casualty insurance companies improve their digital service and shopping experiences. Consultants at J.D. Power say insurers have made across-the-board improvements in clarity of information, but many still struggle with the balance of too much information and a minimalist approach, according to an analysis of the insurers participating in the firm's 2020 U.S. Insurance Digital Experience Study.

The study evaluates digital consumer experiences among P/C insurance customers, examining the functional aspects of desktop, mobile web and mobile apps based on ease of navigation; appearance; availability of key information; range of services; and clarity of the information. The study was conducted in partnership with Centric Digital and Corporate Insight.

"The COVID-19 pandemic has thrust digital shopping and customer self-service solutions into the spotlight," said Tom Super, head of property and casualty insurance intelligence at J.D. Power.

Super said that even before the pandemic, P/C insurers were investing heavily in digital. "Across the board, we've seen the fruits of those investments: overall satisfaction scores for both new insurance shopping and existing account servicing have risen sharply during the past year," he said.

"The line between brand and digital brand is rapidly disappearing as the lion's share of insurance shopping and customer support interactions move to digital platforms," said Michael Ellison, president of Corporate Insight. "Increasingly, insurers' ability to balance providing the right information at the right time in a format that represents their unique identity will be the key differentiator that separates industry leaders from the rest of the pack."

According to the 2 study:

P/C industry is meeting customer digital expectations—for now: Overall customer satisfaction with the P/C insurance customer service experience improved nine points year over year (on a 1,000-point scale) and overall satisfaction with the shopping experience improved 18 points, as the past several years of investment in digital start to pay off. However, customer expectations continue to rise, with shoppers consistently accessing more information than they have in the past, across more channels than ever before.

Too much information vs. minimalist mobile-first design: Finding the right balance when it comes to information density has been a challenge for insurers, with many providing too much complex and expansive information and others pushing heavily to a mobile-first approach. The ability to provide just the right amount of information is a key driver of customer satisfaction.

Forming a clear digital identity becomes key: Facing growing competition from insurtech start-ups and traditional carriers, P&C insurers need to be selective about the information they provide and how they present it digitally, with the objective being to create a corporate identity that flows from their overall brand strategies.

Among insurers participating in the study, GEICO ranked highest in the service segment for a third consecutive year with a score of 885. Allstate (877) and Liberty Mutual (877) ranked second in a tie, while American Family (867) ranked fourth.

National General ranked highest in the shopping segment with a score of 835, which is up 43 points from 2019. Kemper (820) ranked second and Erie Insurance (818) ranked third.

The study is based on 12,867 evaluations and was fielded in February-March 2020.

Source: My New Markets – 6/19/20

COVID-19 Legacy: Many Work-From-Home Policies Likely to Remain Indefinitely

Many of the work-from-home policies launched or expanded due to the coronavirus pandemic are likely to remain indefinitely, according to a survey conducted by 451 Research, S&P Global Markets’ emerging technology research unit.

Nearly 80 percent of companies and organizations surveyed said they began or expanded work-from-home policies due to COVID-19 concerns. Of that number, 67 percent said they’d keep those policies in place permanently or at least for the long-term.

Social distancing might be one reason why – the practice of staying six feet apart from another individual in order to limit spread of the COVID-19 virus. According to the survey, just under 80 percent of organizations said that “social distancing will be the biggest challenge in resuming normal operations.”

Looking at the issue another way, the survey found nearly 19 percent of organizations planned to have employees return to the office “as local regulations allow.” But 25 percent said they’d wait a month or more, and 24 percent said they hadn’t yet determined any timeline to return.

According to 451 Research’s Liam Eagle, employer office changes in response to the pandemic must be measured to help gauge future trends.

“As organizations are heading back to the office in the wake of COVID-19, it is important to quantify what changes materialized during these past few months as a potential indication for the future of work,” Eagle, Head of Voice of the Enterprise Research at 451 Research, said in prepared remarks.

The Digital Pulse COVID-19 Flash Survey includes responses collected between May 29 and June 11 from approximately 575 IT decision-makers in a number of industries. As 451 Research noted, the survey collected a number of company-wide changes experienced so far during the pandemic, including operational impacts, changes to budgets, spending and pricing, adaptation of IT initiatives and new findings on how companies and organizations plan to return to the office.

Here are other survey highlights:

85 percent of employers said they’ve implemented travel limitations, with the same number saying they’ve limited or banned face-to-face meetings.

71 percent of respondents said they are converting hosted events into virtual ones, and 37 percent said they have expanded employee leave rules, among other changes.

Expect office space to shrink in the months ahead. About 47 percent of respondents said they will reduce their office space because of COVID-19. More than 20 percent said they’d slash their office space by more than 25 percent.

Work-related travel won’t be happening much for the rest of 2020. Approximately 34 percent of respondents said their work travel would be cut back by 80 percent or more in the 2020 fourth quarter. About 21 percent said they don’t know how much travel will resume during that period.

Companies and organizations are focusing more of their spending on IT resources (particularly security) spending, communications and collaboration technologies, employee devices and services, information security tools and network capacity.

Businesses are also seeking flexible terms for their leases, licenses and customer contracts.

Source: Carrier Management – 6/19/20 Author: S&P Global Market Intelligence