Year in Review: Top Three Trends in Digital Customer Experience
The P&C insurance landscape has undergone substantial changes aligned with several key trends over the past year. Insurers focused on enhancing customer engagement and improving digital touchpoints to meet rising consumer expectations. Key digital P&C insurance trends from the last year include value-added content in mobile apps, emphasis on discounts in quoting tools and improvements to text alert capabilities. As part of P&C Monitor‘s ongoing research into the P&C insurance space, we track key trends to keep our clients better informed about where other firms are allocating resources. Below, we’ll take a look at these key trends from 2024.
Enhancing Mobile Apps with Value-Added Features
In 2024, insurers went beyond traditional app functionalities by transforming their mobile apps into comprehensive resource hubs. Allstate’s New Features section, which includes tools like GasBuddy for locating cheap fuel as well as climate risk assessments, showcases a pivot toward offering utility behind policy management.
Similarly, Hippo introduced a Home Health program to help homeowners monitor and enhance their property conditions. Policyholders can view and edit an extensive catalog of their home’s characteristics while exploring exclusive deals on home devices, energy optimization, insurance coverage and home warranty.
State Farm added to its claim filing resources by introducing a Next Steps feature to guide policyholders through the aftermath of a total-loss auto claim. The firm also updated the Roadside Assistance flow, providing more helpful resources and enabling real-time updates as a driver travels to their vehicle. These features suggest that insurers view mobile apps as indispensable tools for reinforcing customer loyalty and retention.
Discounts Drive Engagement in Quote Tools: UBI, Telematics and Safe Driving
With rising P&C insurance prices, insurers are emphasizing discounts during the quoting process. As consumers become more informed on the intricacies of auto insurance, quote result pages that contrast pricing tiers and permit users to adjust the quoted policy are becoming an increasingly important feature in maintaining a strong customer base.
One key P&C insurance trend is the uptick in insurers dedicating steps to qualifying prospects for discounts, especially through telematics and UBI. American Family’s Customize Your Savings step highlights this trend, offering users a dedicated space to explore Autopay, paperless and telematics-related discounts.
Allstate’s integration of its Drivewise tool emphasizes savings through safe driving behaviors. With discounts embedded into the quote journey, insurers address customer price sensitivity while encouraging participation in cost-saving programs.
Improved Communication with Enhanced Text Alerts
In 2024, policyholders continued to rate policy information, payment capabilities, claim content and documents as the most important digital features. In our November Claims Update, insureds reported using text messaging as their primary form of communication during the claim process. Nationwide and Progressive inform policyholders via text of who their claim has been assigned to, the next steps in the filing process, and the tracking information for both claims and repairs. Additionally, policyholders can conveniently reply to the text chain with additional questions or information. Another key P&C insurance trend is the enhancement of text alert capabilities. Insurers like Amica have integrated push notifications to keep policyholders informed about claims and policy updates.
These advancements underline the industry’s commitment to providing timely, relevant information directly to customer’s devices, ensuring seamless communication.
Moving Forward
As young consumers steadily enter the insurance market and consumer expectations continue to change, P&C insurers’ adoption of more streamlined digital experiences through mobile apps is critical. Last year’s P&C Insurance Customer Preferences Survey found that mobile app users logged in more frequently and placed high importance ratings on digital tools, capabilities and resources. Additionally, respondents who felt that their insurer communicated well about rate increases were more likely to recommend their insurer to a friend or colleague.
Looking ahead, we expect these 2024 digital P&C insurance trends to continue to shape digital experiences in 2025. By continuing to innovate on mobile platforms, P&C insurers can sustain and expand their customer bases through improved communication, price transparency and value-driven content.
Dellynn Prince-Travis
Dellynn Prince-Travis is an Analyst on CI's P&C insurance team.