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Monday, 16 November 2020 18:21

Consumer Satisfaction with Insurers, Claims Process Improves

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J.D. Power’s annual survey of consumers who had settled a claim within the previous six months found satisfaction with their insurer and the process has improved. J.D. Power’s annual survey of consumers who had settled a claim within the previous six months found satisfaction with their insurer and the process has improved.

Index

New Jersey Manufacturers (NJM) Insurance and Amica claimed the top spots in this year’s J.D. Power Auto Claims Satisfaction Study, based on responses from 11,055 insured consumers who had settled a claim within the six months prior to taking the survey.

Amica is one of only four insurers---along with Auto-Owners, Erie and USAA---to score above the industry average in the ranking every year since 2015. (NJM Insurance was above average for five of those years but did not participate in the 2018 study.)

 

J.D. Power says the downturn in claims this year gave insurers “some breathing room to refine their customer experience,” resulting in an industry average score this year of 872, on a 1,000-point scale, up four points from last year. It was the third year in a row of growth in the industry average, which was 857 in 2015.

 

The study found that consumers using one of their insurers’ direct repair shops were more satisfied (888) than those who did not (844).

 

Country Financial saw the biggest decline in its score this year, dropping from 896 and second place last year, to a below-average 863 this year.

 

Though it has not attained an above-average score in any year, National General saw the biggest jump among insurers this year, climbing 37 points from its score last year to 815 this year, still the lowest score among the 25 insurers in the study.

 

Esurance, a brand Allstate is eliminating this year, also has never had an above-average score---Mercury is in that category as well---but is the only insurer...


...to see its score rise every year since 2015, jumping 27 points this year to 871.

 

USAA has had the most steady score over the six years, consistently scoring between 890 (this year and in 2015) and 903 (2018), making it one of only three insurers to ever score 900 or higher; Amica did that this year and in 2017; NJM Insurance did it this year and last year.

 

Progressive has also remained within a 14-point range all six years, but at a much lower level (849 to 863), below the industry average every year but 2016.

 

J.D. Power noted improvements this year in every factor the study measures, including the estimation process, repair process, rental experience and settlement, except for first notice of loss, which remained flat from 2019. It found cycle time, based on consumer reporting, had fallen to an average of 10.3 days from 12.6 days the prior year.

 

The study included customer surveys from November 2019 through September 2020, giving J.D. Power the ability to compare pre-pandemic customer satisfaction to those with claims in the spring and summer. It found the percentage of customers who said they “definitely” would renew with their insurer increased from 72% pre-pandemic to 76% in more recent months.