Improved Interactions Drive Gen Y Increase in Auto Insurance Satisfaction
Auto-Owners Insurance and State Farm Each Rank Highest in Two of 11 Regions
WESTLAKE VILLAGE, Calif., June 19, 2015 /PRNewswire/ -- Gen Y1 customers are the driving force behind an increase in overall auto insurance satisfaction due to improvement across all customer service interaction channels, the largest contributor to the customer experience, according to the J.D. Power 2015 U.S. Auto Insurance StudySM released today.
The study examines customer satisfaction in five factors: interaction; price; policy offerings; billing and payment; and claims. Satisfaction is measured on a 1,000-point scale.
Overall customer satisfaction with their auto insurer has reached an all-time high of 818, an improvement of 8 index points from 2014. Satisfaction among Gen Y customers has increased the most, compared with the other generations—Gen Y: +21 points; Gen X: +6; Boomers +4; and Pre-Boomers: -3.
The interaction factor has the greatest impact on overall customer satisfaction and is also the largest contributor to the year-over-year improvement. Overall interaction satisfaction among Gen Y customers (827) is up by a significant 20 points from 2014.
Customer interaction preferences are changing. Gen Y's preference to interact exclusively through digital self-service (Web or mobile) has increased to 27 percent in 2015 from 21 percent in 2011. A similar pattern of preference is found in other generational groups (Gen X: 23% vs. 19% in 2011; Boomers: 12% vs. 10%; and Pre-Boomers: 6% vs. 4%). Among the interaction channels, satisfaction with the website experience receives the lowest average score, most notably among Gen Y customers (816, compared with 826 for Gen X, 841 for Boomers and 861 for Pre-Boomers).
"While customers across all generations are able to use online self-service for basic tasks such as making a payment and gathering information about their account, they should also be able to resolve more complex issues online," said Valerie Monet, director of the insurance practice at J.D. Power. "It is critical for insurers to resolve customers' service needs entirely on the website. This can drive increased use of the website and can minimize servicing costs, as unresolved issues frequently require a contact to call centers or agents, freeing their time to cultivate new business."
According to Monet, some activities are better performed through personal interactions. One-fourth (25%) of Gen Y customers indicate they would rather talk to someone in person or over the phone to discuss price changes, and 23 percent indicate they prefer in person or over the phone rather the website channel when they have questions about their policy coverage. Insurers should focus their in-person resources on high-touch customer calls in which the agent's expertise is highly valued.
KEY FINDINGS
- The incidence of resolving issues entirely via the website has increased for Gen Y to 81 percent (up by 2 percentage points from 2014), with similar rates across generational groups—Gen X 82%; Boomers 81%; and Pre-Boomers 80%. Website satisfaction is 123 points lower among customers who do not resolve their issue completely via the website than among those who do (736 vs. 859, respectively).
- Nearly three-fourths (73%) of Gen Y customers indicate having online access to policy information (+2 percentage points from 2014), compared with 62 percent across the other three generations. The level of awareness of online access to policy information among Gen Y customers (73%) is greater than among customers in the other generational groups (Gen X 68%; Boomers 62%; and Pre-Boomers 54%).
- Nearly nine in 10 (87%) customers overall indicate receiving communications from their insurer via their preferred method—up 2 percentage points from 2014—compared with 81 percent among Gen Y customers, which is an increase of 5 percentage points.
- Across all generational groups, 49 percent of customers say they "definitely will" recommend their current insurer (the same as in 2014) and 50 percent say they "definitely will" renew their policy (down 1 percentage point from 51% in 2014).
Regional Overview
Satisfaction varies regionally from a high of 832 in the Texas region to a low of 801 in the New England region. Eight of the 11 study regions post significant increases in overall customer satisfaction year over year, with the greatest improvements in the Florida (+24 points) and Mid-Atlantic (+16) regions.
California: Wawanesa (844) ranks highest in the California region. The Hartford ranks second at 840 and Auto Club of Southern California Insurance Group ranks third at 839.
Central: Auto-Owners Insurance (850) ranks highest in the Central region, followed by Shelter Insurance (846) and State Farm (830).
Florida: GEICO (836) ranks highest in the Florida region. Progressive (835) and Allstate (832) follow GEICO in the rankings.
Mid-Atlantic: Erie Insurance (850) ranks highest in the Mid-Atlantic region. The Hartford (835) ranks second and State Farm ranks third (826).
New England: Amica Mutual (866) ranks highest in the New England region. State Farm (815) ranks second and Allstate (808) third.
New York: State Farm ranks highest in the New York region (831). GEICO (828) ranks second and Travelers (818) ranks third.
North Central: Auto-Owners Insurance (834) ranks highest in the North Central region. Nationwide (828) ranks second and COUNTRY Financial and Indiana Farm Bureau (822 each) tie for third.
Northwest: PEMCO Insurance (837) ranks highest in the Northwest region, followed by State Farm (830) and Farmers (828).
Southeast: Tennessee Farm Bureau (859) ranks highest in the Southeast region. Alfa Insurance (831) ranks second and Allstate (830) third.
Southwest: The Hartford and State Farm rank highest in the Southwest region in a tie (830 each). Liberty Mutual (826) ranks third.
Texas: Texas Farm Bureau Insurance (859) ranks highest in the Texas region. No other insurance company performs above the Texas region average (832).
New Jersey Manufacturers Insurance Company (NJM) and USAA also achieve high levels of customer satisfaction in the study, although they are not included in the rankings due to the closed nature of their respective memberships.
The 2015 U.S. Auto Insurance Study is based on responses from 46,256 auto insurance customers. The survey data was collected in March and April 2015.
| Overall Satisfaction Index Rankings |
J.D. Power.com Power Circle RatingsTM |
||
| (Based on a 1,000-point scale) |
For Consumers |
||
| California Region |
|||
| Wawanesa |
844 |
5 |
|
| The Hartford |
840 |
5 |
|
| Auto Club of Southern California Insurance Group |
839 |
5 |
|
| Ameriprise |
831 |
4 |
|
| State Farm |
828 |
4 |
|
| Esurance |
817 |
4 |
|
| GEICO |
812 |
3 |
|
| Progressive |
803 |
3 |
|
| California Regional Average |
803 |
3 |
|
| Allstate |
796 |
3 |
|
| CSAA Insurance Group |
794 |
3 |
|
| Farmers |
793 |
3 |
|
| Safeco Insurance |
787 |
3 |
|
| Nationwide |
786 |
3 |
|
| Liberty Mutual |
785 |
3 |
|
| 21st Century |
782 |
3 |
|
| Mercury |
781 |
3 |
|
| Travelers |
768 |
2 |
|
| Infinity P&C |
715 |
2 |
|
| *USAA |
901 |
||
| Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Kemper, MAPFRE-Commerce Insurance, and National General. |
|||
| Central Region |
|||
| Auto-Owners Insurance |
850 |
5 |
|
| Shelter Insurance |
846 |
5 |
|
| State Farm |
830 |
4 |
|
| American Family |
822 |
3 |
|
| Central Regional Average |
820 |
3 |
|
| Allstate |
819 |
3 |
|
| Farmers |
819 |
3 |
|
| GEICO |
818 |
3 |
|
| The Hartford |
818 |
3 |
|
| Safeco Insurance |
818 |
3 |
|
| Auto Club of Southern California Insurance Group |
814 |
3 |
|
| Progressive |
807 |
2 |
|
| Farm Bureau Mutual |
799 |
2 |
|
| Liberty Mutual |
798 |
2 |
|
| Nationwide |
789 |
2 |
|
| Travelers |
788 |
2 |
|
| *USAA |
890 |
||
| Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size is Automobile Club Group. |
|||
| Florida Region |
|||
| GEICO |
836 |
5 |
|
| Progressive |
835 |
5 |
|
| Allstate |
832 |
5 |
|
| MetLife |
829 |
3 |
|
| Florida Regional Average |
829 |
3 |
|
| State Farm |
816 |
2 |
|
| Liberty Mutual |
814 |
2 |
|
| Nationwide |
803 |
2 |
|
| The Hartford |
801 |
2 |
|
| 21st Century |
797 |
2 |
|
| Auto-Owners Insurance |
794 |
2 |
|
| Travelers |
792 |
2 |
|
| Esurance |
791 |
2 |
|
| Safeco Insurance |
788 |
2 |
|
| *USAA |
902 |
||
| Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Direct General, Farmers, Infinity P&C, and Mercury. |
|||
| Mid-Atlantic Region |
|||
| Erie Insurance |
850 |
5 |
|
| The Hartford |
835 |
4 |
|
| State Farm |
826 |
3 |
|
| Mid-Atlantic Regional Average |
822 |
3 |
|
| GEICO |
821 |
3 |
|
| Allstate |
819 |
3 |
|
| Travelers |
814 |
3 |
|
| Progressive |
811 |
3 |
|
| Nationwide |
802 |
2 |
|
| Liberty Mutual |
801 |
2 |
|
| Plymouth Rock Assurance |
801 |
2 |
|
| 21st Century |
781 |
2 |
|
| *USAA |
906 |
||
| **NJM Insurance Co. |
864 |
||
| Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. **NJM Insurance Co. is an insurance provider open only to New Jersey Business & Industry Association members, State of New Jersey employees, NJM's previously insured drivers, and/or previous/current auto/homeowner policyholders, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Esurance, and MetLife. |
|||
| New England Region |
|||
| Amica Mutual |
866 |
5 |
|
| State Farm |
815 |
4 |
|
| Allstate |
808 |
3 |
|
| Liberty Mutual |
801 |
3 |
|
| New England Regional Average |
801 |
3 |
|
| GEICO |
799 |
3 |
|
| Progressive |
796 |
3 |
|
| The Hartford |
793 |
3 |
|
| MetLife |
791 |
3 |
|
| Safety Insurance |
791 |
3 |
|
| Travelers |
791 |
3 |
|
| Safeco Insurance |
786 |
3 |
|
| Nationwide |
778 |
2 |
|
| Plymouth Rock Assurance |
777 |
2 |
|
| Arbella |
775 |
2 |
|
| MAPFRE-Commerce Insurance |
774 |
2 |
|
| *USAA |
894 |
||
| Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size is The Hanover. |
|||
| New York Region |
|||
| State Farm |
831 |
5 |
|
| GEICO |
828 |
5 |
|
| Travelers |
818 |
4 |
|
| New York Regional Average |
813 |
3 |
|
| Nationwide |
806 |
3 |
|
| Allstate |
805 |
3 |
|
| New York Central Mutual |
802 |
2 |
|
| MetLife |
799 |
2 |
|
| Liberty Mutual |
792 |
2 |
|
| Progressive |
787 |
2 |
|
| The Hartford |
783 |
2 |
|
| *USAA |
911 |
||
| Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Erie Insurance, and Kemper. |
|||
| North Central Region |
|||
| Auto-Owners Insurance |
834 |
5 |
|
| Nationwide |
828 |
4 |
|
| COUNTRY Financial |
822 |
4 |
|
| Indiana Farm Bureau |
822 |
4 |
|
| The Hartford |
821 |
4 |
|
| American Family |
819 |
4 |
|
| State Farm |
816 |
4 |
|
| Erie Insurance |
815 |
4 |
|
| Progressive |
813 |
3 |
|
| Farmers |
812 |
3 |
|
| GEICO |
812 |
3 |
|
| North Central Regional Average |
808 |
3 |
|
| Allstate |
806 |
3 |
|
| Grange Insurance |
806 |
3 |
|
| Liberty Mutual |
804 |
3 |
|
| MetLife |
800 |
3 |
|
| Michigan Farm Bureau |
796 |
2 |
|
| Automobile Club Group |
794 |
2 |
|
| The Hanover |
785 |
2 |
|
| Safeco Insurance |
776 |
2 |
|
| *USAA |
898 |
||
| Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size is Esurance. |
|||
| Northwest Region |
|||
| PEMCO Insurance |
837 |
5 |
|
| State Farm |
830 |
5 |
|
| Farmers |
828 |
4 |
|
| GEICO |
822 |
3 |
|
| The Hartford |
820 |
3 |
|
| Northwest Regional Average |
817 |
3 |
|
| American Family |
805 |
3 |
|
| Allstate |
798 |
2 |
|
| Safeco Insurance |
798 |
2 |
|
| Progressive |
794 |
2 |
|
| Nationwide |
781 |
2 |
|
| Liberty Mutual |
758 |
2 |
|
| *USAA |
902 |
||
| Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are COUNTRY Financial, Kemper, and Mutual of Enumclaw. |
|||
| Southeast Region |
|||
| Tennessee Farm Bureau |
859 |
5 |
|
| Alfa Insurance |
831 |
3 |
|
| Allstate |
830 |
3 |
|
| Progressive |
829 |
3 |
|
| North Carolina Farm Bureau |
826 |
3 |
|
| Kentucky Farm Bureau |
825 |
3 |
|
| Southeast Regional Average |
825 |
3 |
|
| State Farm |
824 |
3 |
|
| Auto-Owners Insurance |
822 |
3 |
|
| GEICO |
816 |
3 |
|
| Nationwide |
814 |
3 |
|
| Travelers |
808 |
2 |
|
| Liberty Mutual |
800 |
2 |
|
| Safeco Insurance |
791 |
2 |
|
| *USAA |
919 |
||
| Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are COUNTRY Financial, Erie Insurance, Esurance, Farmers, Grange Insurance, The Hartford, Kemper, MetLife, National General, and Shelter. |
|||
| Southwest Region |
|||
| The Hartford |
830 |
5 |
|
| State Farm |
830 |
5 |
|
| Liberty Mutual |
826 |
3 |
|
| American Family |
824 |
3 |
|
| GEICO |
824 |
3 |
|
| Southwest Regional Average |
824 |
3 |
|
| Progressive |
814 |
2 |
|
| CSAA Insurance Group |
812 |
2 |
|
| Allstate |
803 |
2 |
|
| Farmers |
797 |
2 |
|
| Safeco Insurance |
797 |
2 |
|
| *USAA |
914 |
||
| Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Auto-Owners Insurance, Farm Bureau Mutual, and Nationwide. |
|||
| Texas Region |
|||
| Texas Farm Bureau Insurance |
859 |
5 |
|
| Texas Regional Average |
832 |
3 |
|
| State Farm |
827 |
3 |
|
| Progressive |
825 |
3 |
|
| GEICO |
822 |
3 |
|
| Farmers |
811 |
2 |
|
| Allstate |
805 |
2 |
|
| Nationwide |
797 |
2 |
|
| Liberty Mutual |
792 |
2 |
|
| *USAA |
892 |
||
| Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Auto Club of Southern California Insurance Group, Kemper, and Safeco Insurance. |
|||
Power Circle Ratings Legend
5 – Among the best
4 – Better than most
3 – About average
2 – The rest
Media Relations Contacts
Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; 818-317-3070; [email protected]
John Tews; J.D. Power; Troy, Mich.; 248-680-6218; [email protected]
About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info
About McGraw Hill Financial www.mhfi.com
1 J.D. Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004).
Logo - http://photos.prnewswire.com/prnh/20130605/LA26502LOGO
SOURCE J.D. Power
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article