Amica Mutual scores highest in property claims satisfaction for eighth consecutive year, as many insurers still fall short on managing customer expectations during servicing and settlement: J.D. Power 2019 U.S. Property Claims Satisfaction Study
Costa Mesa, CA (Feb. 28, 2019) – Against a backdrop of deteriorating property loss ratios and low premium growth, property insurers are earning high marks for overall customer satisfaction, but there are still some components of the claims process that are falling short. According to the J.D. Power 2019 U.S. Property Claims Satisfaction Study,SM the three most important components of the claims process—how well customers are kept informed on the progress of their claim; time to settle the claim; and fairness of the claim settlement—earn among the lowest ratings of all study attributes.
“Overall customer satisfaction remains high and the leading providers continue to outperform their peers by a comfortable margin,” said David Pieffer, Property & Casualty Lead for J.D. Power Insurance Intelligence. “However, there also are obvious areas for improvement where insurers could do a better job of managing customer expectations. As the industry keeps shifting toward more personalized, usage-based and on-demand insurance options, the ability to communicate effectively and make claimants feel at ease along the way will be a key differentiator for top-performing insurers.”
Following are some of the key findings of the 2019 study:
- Many insurers miss the mark on customer communications: The three components of the claims process that have the highest importance weights in overall satisfaction metrics are among those rated lowest by claimants: fairness of the claim settlement (settlement); how well you were kept informed on the progress of the claim (claim servicing); and time to settle the claim (settlement). This shines a spotlight for insurers on effective communications as an area for improvement.
- Setting accurate claim length expectations is critical: Overall customer satisfaction among claimants who receive accurate claim length estimates is 151 points higher, on average, than among those whose claim takes longer than expected (905 vs. 754, on a 1,000-point scale). Satisfaction is even lower (753) when no expectation is set at all.
- Concierge-type services provided at first notice of loss (FNOL) boost customer satisfaction and advocacy: When insurers make a hotel reservation for a claimant immediately upon FNOL, satisfaction increases by 42 points and results in a significant increase in Net Promoter Score®. Other ancillary services driving satisfaction and advocacy include discussing repair options (+44 points); notifying a repair company (+38); and scheduling an estimate (+33).
- Insurance customers experience considerable variation in claims service: The gap in property claims satisfaction between the highest- and lowest-performing insurers is 76 points, underscoring the importance for customers shopping for insurance to select a P&C insurer that can deliver a superior claims service.
Amica Mutual ranks highest in property insurance claims experience for an eighth consecutive year, achieving a score of 901. COUNTRY Financial ranks second with a score of 893, followed by The Hartford with a score of 888.
The U.S. Property Claims Satisfaction Study measures satisfaction with the property claims experience among insurance customers who have filed a claim for damages by examining five factors (listed in order of importance): settlement; claim servicing; first notice of loss; estimation process; and repair process. The 2019 study is based on responses from 6,374 homeowners insurance customers and was fielded between April and November 2018.
For more information about the 2019 U.S. Property Claims Satisfaction Study, click here.
About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, South America, Asia Pacific and Europe.
SOURCE: J.D. PowerTags: J.D. Power, satisfaction