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.

2 thoughts on “Homeowners Claims: A Moment of Truth”

  1. I think this fits in well with other CRM studies. People like to work with companies that treat them right, especially when it comes to products like insurance, which mostly provide peace-of-mind to consumers.

  2. This just proves what every business already knows. Treat your clients fairly and with respect, and they will stay loyal to you. I believe this is particularly true in the insurance industry since the products and services that are provided are tangible products.

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