Understanding Channel Preference and User Experience Key Drivers of Success; Gen Y Satisfaction with Auto Insurance Claims Still Low, but Improving
Auto-Owners Insurance Ranks Highest in Auto Claims Satisfaction
Auto-Owners Insurance Ranks Highest in Auto Claims Satisfaction
WESTLAKE VILLAGE, Calif., Oct. 26, 2015 /PRNewswire/ -- While satisfaction with the auto insurance claims process is lower among Gen Y1—also known as "Millennials"—claimants than among their older counterparts, their satisfaction is improving, according to the J.D. Power 2015 U.S. Auto Claims Satisfaction StudySM released today.
The study measures customer satisfaction with their most recent automobile collision claim. Depending on the complexity of the claim, claimants may experience some or all of the following areas measured in the study: first notice of loss; service interaction; appraisal; repair process; rental experience; and settlement. Satisfaction is calculated on a 1,000-point scale.
Learn more about J.D. Power insurance studies at http://www.jdpower.com/industry/insurance.
The study finds that overall satisfaction with the claims filing process among the Gen Y claimants, which has grown to 33 percent of the claims-filing population in 2015 from 28 percent in 2014, has improved to 827 in 2015 from 819 in 2014. Satisfaction has also improved among Gen X customers, who account for 20 percent of claimants, to 855 from 847. Pre-Boomers are the most satisfied at 894, down from 911 in 2014, while satisfaction among Boomers, the largest segment at 39 percent, is 875, down from 876 in 2014.
"The efforts the insurance providers are making to improve the claims experience among Gen Y and Gen X claimants are having an impact," said Mark Garrett, director of insurance industry analytics at J.D. Power. "Gen Y is the only generation of auto insurance customers that is growing. It's critical that providers continue to focus on those younger generations as they are the future of their business."
Garrett also noted that insurance providers need to be careful not to take a one-size-fits-all approach, either overall or by generational group. "Consumers' needs vary greatly based on their attitudes, preferences, plans, intentions and behaviors," said Garrett. "Providers need to know their customers and focus on channels and solutions that work for them."
For example, among full-service advice seekers—customers who have a strong relationship with their agent, 81 percent contact their agent first for guidance or to report their claim, making what the agent does with this initial phone call a particularly important driver of customer satisfaction. Conversely, among technologists—customers who prefer to interact with their insurer via technology, satisfaction with the first notice of loss is highest (891) among the 15 percent who report their claim online.
But even technologists have times when they want to talk with someone from their insurance company. Once the claim is filed, more than half of technologists use such technology as a website, email or texts to receive updates throughout the process. However, technologists are most satisfied when technology updates are provided in combination with proactive phone calls from their insurer (897). While only 35 percent of full-service advice seekers receive updates through technology, they too are most satisfied when they receive proactive phone calls from their insurer in addition to technology updates (922).
KEY FINDINGS
Insurance Rankings
Auto-Owners Insurance ranks highest in auto claims satisfaction with an index score of 893, a 14-point improvement from 2014. Auto-Owners Insurance performs particularly well in the first notice of loss, service interaction, repair process and settlement factors.
Amica Mutual ranks second (885), followed by Auto Club of Southern California Insurance Group (871), The Hartford (870) and Nationwide (866).
The 2015 U.S. Auto Claims Satisfaction Study is based on responses from 11,469 auto insurance customers who settled a claim within the past six months prior to taking the survey. The study excludes claimants whose vehicle incurred only glass/windshield damage or was stolen, or who only filed a roadside assistance claim. Survey data was collected from November 2014 through September 2015.
Overall Customer Satisfaction Index Scores |
J.D. Power.com Power Circle RatingsTM |
|
(Based on a 1,000-point scale) |
For Consumers |
|
Auto-Owners Insurance |
893 |
5 |
Amica Mutual |
885 |
5 |
Auto Club of Southern California Insurance Group |
871 |
4 |
The Hartford |
870 |
4 |
Nationwide |
866 |
4 |
Erie Insurance |
862 |
3 |
Allstate |
861 |
3 |
American Family |
859 |
3 |
Farmers |
859 |
3 |
Safeco |
859 |
3 |
State Farm |
858 |
3 |
industry Average |
857 |
3 |
GEICO |
854 |
3 |
Liberty Mutual |
854 |
3 |
Progressive |
853 |
3 |
COUNTRY Financial |
851 |
3 |
Mercury |
851 |
3 |
Travelers |
851 |
3 |
CSAA Insurance Group |
848 |
3 |
21st Century |
843 |
3 |
The Hanover |
835 |
2 |
MetLife |
833 |
2 |
Automobile Club Group |
831 |
2 |
Esurance |
825 |
2 |
MAPFRE-Commerce Insurance |
804 |
2 |
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**NJM Insurance Co. |
895 |
|
*USAA |
890 |
*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 award-eligible due to not meeting minimum sample requirements are Alfa Insurance, Infinity P&C, Kemper and National General.
Power Circle Ratings Legend
5 – Among the best
4 – Better than most
3 – About average
2 – The rest
Award-Eligible Insurance Companies Included in the Study
Company Name |
CEO Name |
Company Address |
ACG (AAA) |
Charles Podowski |
Dearborn, Mich. |
ACSC (AAA) |
Robert Bouttier |
Los Angeles, Calif. |
Allstate |
Thomas Wilson |
Northbrook, Ill. |
American Family |
Jack Salzwedel |
Madison, Wisc. |
Amica Mutual |
Robert DiMuccio |
Lincoln, RI |
Auto-Owners Insurance |
Jeffrey Harrold |
Lansing, Mich. |
COUNTRY Financial |
Kurt Bock |
Bloomington, Ill. |
CSAA IG (AAA) |
Paula Downey |
Walnut Creek, Calif. |
Erie Insurance |
Terrence Cavanaugh |
Erie, Pa. |
Esurance |
Jonathan Adkisson |
San Francisco, Calif. |
Farmers |
Jeffrey Dailey |
Woodland Hills, Calif. |
GEICO |
Tony Nicely |
Washington, D.C. |
Liberty Mutual |
David Long |
Boston, Mass. |
MAPFRE-Commerce Insurance |
Jaime Tamayo |
Webster, Mass. |
Mercury |
Gabriel Tirador |
Los Angeles, Calif. |
MetLife |
Steven Kandarian |
New York, NY |
Nationwide |
Stephen Rasmussen |
Columbus, Ohio |
Progressive |
Glenn Renwick |
Mayfield Village, Ohio |
Safeco |
Matthew Nickerson |
Seattle, Wash. |
State Farm |
Michael Tipsord |
Bloomington, Ill. |
The Hanover |
Frederick Eppinger |
Worcester, Mass. |
The Hartford |
Christopher Swift |
Hartford, Conn. |
Travelers |
Jay Fishman |
New York, NY |
21st Century |
Anthony DeSantis |
Wilmington, Del. |
Media Relations Contacts
Jeff Perlman; Brandware Public Relations; 818-317-3070; [email protected]
John Tews; J.D. Power; 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).
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SOURCE J.D. Power
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