Monday, June 22, 2015
Gen Y customers–or Millennials–have expressed a sharp increase in satisfaction with their car insurance compared to other generations, according to the just-released J.D. Power 2015 U.S. Auto Insurance Study.
The study examines customer satisfaction in five factors: interaction; price; policy offerings; billing and payment; and claims.
Overall customer satisfaction with their auto insurer reached an all-time high of 818 on a 1,000-point scale, an improvement of 8 index points from 2014.
Satisfaction among Gen Y customers increased by 21 points—the biggest increase compared with the other generations. Satisfaction among Gen X customers was up 6 points, and among Boomers by 4 points, while Pre-Boomers were less satisfied (-3 points).
Improved interactions had the greatest impact on overall customer satisfaction and were also the largest contributor to the year-over-year improvement, the JD Power survey found.
Interaction satisfaction among Gen Y customers came in at 827, an increase of 20 points from 2014.
Customer interaction preferences are changing. Gen Y’s preference to interact exclusively via digital self-service (Web or mobile) increased to 27 percent in 2015, up from 21 percent in 2011.
A similar preference to interact via Web or mobile is true of other generations: Gen X (23 percent vs. 19 percent in 2011); Boomers (12 percent vs. 10 percent); and Pre-Boomers (6 percent vs. 4 percent).
However, auto insurers need to have their websites ready to resolve customer service issues.
The survey found that 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).
JD Power noted that 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 also need to be able to resolve more complex issues online.
Still, some activities are better performed through personal interactions, J.D. Power noted.
For example, when it comes to discussing price changes, one-quarter (25 percent) of Gen Y customers would rather talk to someone in person or over the phone, and 23 percent indicate they prefer in person or over the phone rather than the website channel when they have questions about their policy coverage.
The Insurance Information Institute (I.I.I.) has some must-read facts and statistics on auto insurance here.