J&D Power's recently published Insurance Digital Experience Study is enough to worry any executives tasked with innovation and digital transformation.

“The bar just continues to get higher for customer expectations around digital, and while many insurers are hitting the mark on the digital basics, few insurers are using digital in new ways to drive growth and engagement,” said Tom Super, head of property and casualty insurance intelligence at J.D. Power. “The real challenge for insurers is pushing the envelope on digital innovation. Customers’ pace of expected change is accelerating, and insurers must be able to take steps to go beyond the basics of simply digitizing customer tasks. Those that can make this leap will be poised to separate themselves from the pack.” asked with innovation and digital transformation. "

Despite what technology vendors say, transformation is neither easy or cost free. Insurers are still constrained by multiple technology stacks and even many blockchain products contain legacy technology never mind older insurance core platforms and software. Progress demands more than just technology- there must be an enterprise-wide commitment to change with strong leadership, clear vision, viable strategies and collaboration, communication and orchestration across all business units.

J.D. Power concludes that whilst insurers are getting the basics right few are using digital in new ways to drive growth and engagement. This is made worse by the challenge that consumers expectations have changed fast and furiously as the pandemic made us all manage life virtually and digitally  every day. 

I wanted to test a feeling that home, property and content insurance has lagged behind motor. A feeling arising from personal experience, real digital transformation projects and what we all read in the media. There just seems to be more activity in motor insurance  innovation.

How to test that theory?

Altus has managed a DigitalBar for three years now with UK insurers which measures and comments on digital maturity- a credible inter-company comparison across the insurance value chain. You can see measurement by brand over time and how companies rise and fall against competitors. 

                                       MOTOR       HOME         Home/Motor Gap % points

Quote & Buy                      99%           96%                     -3%

MTA                                    67%          53%                     -14%

Renewal                            34%            26%                    -12%

Claims                               33%           28%                      -5%

Whilst digital maturity is almost similar for Quote & Buy, the digital transformation outcomes fall for renewals and Claims especially when you see these these are % point differences from far lower digital transformation scores.

When you look at the claims lifecycle the 2020 digital maturity picture for HOME insurance is illuminating- 2019 in brackets.

1) Claim Notification 45% (41%)  2) Claim Digital Tech 18% (N/A) 3) Claim Tracking 5% (N/A)


  1. Customers can complete an Online FNOL process for some or all Claims types 
  2.  Any specific digital technology that can be used by customers at points within the claims journey, including photo/video upload, damage assessment  
  3. Customers can track their claims online, status at each stage and communications


Altus explains the data.

"Almost all insurers we have spoken to are on a claims transformation journey, with some making a tangible move towards automating the claims process end-to-end. 

Naturally, this has started with the FNOL processes, with significant focus being on this during the last few years – 5 years ago an online FNOL form was rare in the market.  Moving forward to the present day, it is now the majority of Insurers who have implemented online forms and customer portals to enable customers to report claims.  We’ve also seen the use of tools to automate the validation of electronic claim forms (ECFs) in the London Market.

Going along the Claims value chain, we see automation being used for simpler, low value claims, and for more complex claims, the use of technology to support and enhance decision making. 

In particular, the use of data analytics to recreate loss scenarios and determine liability, video streaming to enable decisions to be made by claims handlers without site visits, and using machine learning models to determine quantum and the most appropriate method of settlement.  Also, at the back-end, insurers are working closely with vendors operating in the payments space to improve the speed of indemnity.

As most Insurers have projects underway or in plan to implement improved digital capabilities over the next 6 to 24 months, we should be seeing material improvements to the experience for customers at the moment of truth for Insurance, and our scores will be regularly updated to reflect the progress we are seeing in this area. "

In summary, most progress has been in FNOL and simple claims. Where more complex claims require surveys, professional expertise, triage of loss adjusters, suppliers, contractors and sub-contractors and allocation to the right claims teams the digital transformation falters.

Altus adds this footnote.

"Claims has seen some progression too, mostly focussed on FNOL, though some insurers are offering full digital journeys for simple claims such as Accidental Damage to low value articles in the home and some motor insurers carrying out Total Loss claims in minutes rather than days. A further breakdown in Claims capabilities, encompassing Digital Technology and Claims Tracking functionality (shown only at individual Insurer Brand level at the moment) will be factored into overall scoring soon, so expect the overall Claims number to drop in the coming weeks."

Looking forward to seeing the new scoring and how digital transformation matures and home/property catches up with motor. 

Thanks to Mark Andrews Director Insurance at Altus for permission to use data from the DigitalBar. There is a wealth of insights there and you can try it free for 14 days HERE