US auto and homeowners insurers have spent years steering policyholders toward apps and web portals for claims reporting and tracking, but many customers still move off digital channels for key steps in the process, according to new research from J.D. Power.
The J.D. Power 2025 US Claims Digital Experience Study found that overall satisfaction is highest when claimants manage their claims digitally, from first notice of loss through estimates and status updates.
At the same time, many customers still turn to phone calls or other offline channels when they need more detailed explanations or follow-up on claim progress.
“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 (pictured above), director of global insurance intelligence at J.D. Power.
He added that the study shows several points in the claim journey where customers move across channels to speak with representatives or obtain status updates.
Garrett said insurers that can anticipate the information customers will need and “proactively deliver it digitally” are more likely to see gains in satisfaction and brand loyalty. The findings suggest that incomplete or fragmented digital journeys remain a source of friction, even as carriers invest heavily in self-service tools.
The push to improve digital claims also comes at a time when auto lines, particularly commercial auto, are under sustained underwriting pressure, with AM Best reporting more than $10 billion in net underwriting losses over the past two years and 14 consecutive years of losses in the segment.
Industry analysts say those conditions are prompting carriers to look more closely at expense control and claims efficiency, positioning end-to-end digital workflows and automation as tools to manage costs while maintaining service levels.
One of J.D. Power’s main themes is the demand for more proactive communication. Receiving adequate digital updates emerged as a top driver of satisfaction in the claims experience, yet J.D. Power reported that insurers deliver on this performance indicator just 22% of the time.
Mobile apps, in particular, appear underused for status updates. The study found satisfaction scores are highest when customers receive updates through an insurer’s app, but only 36% of auto insurance customers and 31% of homeowners insurance customers currently get updates this way, with most still relying on email, phone calls or text messages.
Despite industry efforts to promote digital first notice of loss and end-to-end digital claims, 22% of customers continue to use multiple channels to resolve the same question, the study showed. That pattern points to a lack of integration across tools and touchpoints in many carriers’ claims operations.
Digital performance also correlates with retention risk, J.D. Power said. Among auto and homeowners customers who describe their digital claims experience as “poor” or “just OK,” 52% are likely to leave or not renew with their current carrier, compared with just 4% among those who say their experience was “excellent” or “perfect.”
“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, digital solutions analyst at J.D. Power.
She said this creates “a real opportunity for insurers to create a complete end-to-end digital experience that anticipates customer needs more proactively.”
