Tag Archives: Customer Satisfaction

Customer Satisfaction With Homeowners Insurance

The just released J.D. Power and Associates 2011 U.S. National Homeowners Insurance Study contains a number of interesting findings, but a couple of key takeaways really caught our attention.

For example, homeowners who carry sufficient insurance coverage to fully rebuild their homes in the event of a total loss are more satisfied with their insurer than those that don’t, the study found.

Approximately 16 percent of homeowners insurance policyholders indicate they carry less coverage than would be required to fully rebuild their home in the event of a total loss.

Among those policyholders, satisfaction averages 739 on a 1,000 point scale in 2011 – more than 40 points lower than among policyholders who say they have sufficient coverage.

J.D. Power notes that it is key for homeowners to ensure that their insurance coverage is sufficient before a disaster strikes.

While many homeowners may not give much thought to their insurance under normal circumstances, the moment they have to file a claim, the value of coverage becomes realized.

The study found  that customers who have filed a claim tend to be more knowledgeable about their policies – and also more satisfied – than those who haven’t had a claims experience.

Overall satisfaction with homeowners insurance companies averages 769 in 2011 – improving by 19 points from 2010, according to the study. While satisfaction improved in all five factors, the greatest gain was in the interaction factor.

This year’s study is based on responses from more than 9,100 homeowners insurance customers, fielded between April and July 2011.

Check out this I.I.I. video for tips on making sure you are  adequately insured.

Check out I.I.I. facts and stats on homeowners insurance.

Homeowners Claims: A Moment of Truth

Insurers that provide highly satisfying home insurance claim experiences are more likely to see increased customer retention and loyalty, according to a new study from J.D. Power and Associates.

Its 2010 U.S. Home Claims Satisfaction Study finds that among home insurers that provide highly satisfying claims experiences, 71 percent of their claimants indicate that they “definitely will† renew with their insurer and only 4 percent say they have switched insurers following their homeowners claim.

In comparison, among insurers with lower levels of satisfaction, only 53 percent of claimants say they plan to renew, while 10 percent say they have switched insurers. Fewer than one-half (48 percent) of these claimants say they “definitely will† recommend their insurer.

In a press release, Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates notes that suffering a property loss and filing a claim tends to be an emotionally charged experience – often more so than an auto claim.

As a result, the property claim represents a moment of truth for insurance claimants regarding their insurers, so it’s particularly important that the claims experience is handled in a a satisfying manner to ensure claimants remain with the insurer in the long run.†

The study finds that insurers performing key services, such as clearly explaining the claims process, giving claimants an expectation of how long the claim will take and ensuring claimants know who to contact with questions, may considerably improve satisfaction with the claims experience.

Among claimants who say that their insurer delivered on all of the top service practices, satisfaction averages 929 points, but drops to 650 among claimants whose insurers missed four or more of the top service practices

The study underscores an important point – insurers that clearly explain the claims process can make it easier and a lot less stressful for their customers.

To help demystify the claims-filing process, check out I.I.I. tips  on how to file a homeowners claim  and the I.I.I. video  Filing a Homeowners Insurance Claim: Six Steps.

Marginal Decline in P/C Customer Satisfaction

Customer satisfaction with the property/casualty insurance industry slipped a bit in the fourth quarter of 2009. According to the latest University of Michigan American Customer Satisfaction Index (ACSI), the p/c sector showed a slight drop of 1.2 percent to a score of 80 in Q4 2009. That said, several p/c insurers improved their customer relationships in 2009. Among property/casualty insurers, four of the five measured companies improved (with one steady), but the gains were all small. ACSI data indicates the decline in the industry overall is due to a 3 percent ACSI drop in the aggregate of all other smaller insurers, which are challenged to provide the same rates as their larger competitors, focusing instead on service. In the aggregate, customer satisfaction with the finance and insurance sector (including banks, credit unions, and property, life and health insurance) improved 1.4 percent to an ACSI score of 77.1. Even though some individual banks plunged in customer satisfaction, banks and credit unions as a whole were unchanged from a year ago with ACSI scores of 75 and 84, respectively. Life insurance posted a small improvement of 1.3 percent to a score of 79, while customer satisfaction with health insurance went up 2.7 percent to a record-high score of 75. The index measures customer expectations, perceived quality and perceived value of companies in various industries.

The Value of Homeowners Insurance

Despite recent housing market troubles, homeowners appear to be very happy with their insurance companies. The J.D. Power and Associates 2009 Homeowners Insurance Study reports that for the first time in five years, overall customer satisfaction with homeowners insurance has increased significantly, driven by favorable perceptions of the value of their policies. Satisfaction with homeowners insurance averages 773 on a 1,000-point scale in 2009 – an increase of 21 points on 2008. J.D. Power says the overall increase is primarily due to substantial improvements in the price, policy offerings and billing and payment factors. Satisfaction with price improved most notably – increasing by 46 points from 2008. The apparent prevalence of discounts also contributed to improved perceptions of policy value. The study found that the percentage of policyholders who reported receiving discounts increased in 2009 to 84 percent from 81 percent in 2008. Of the 27 insurers included in the study, 10 have experienced notable increases from 2008 in the proportion of their customers who report getting discounts. J.D. Power noted that policyholders who receive discounts are significantly more satisfied than those who either do not receive discounts or are unsure of the discounts they receive. Check out I.I.I. facts and stats on homeowners insurance.