Amica Mutual ranked highest in overall satisfaction for a fourth consecutive year, with a score of 888 out of a possible 1,000, in J.D. Power's “2015 Property Claims Satisfaction Study.”
Homeowners’ claims satisfaction overall climbed for the third consecutive year. Nationwide ranked second with 886, followed by Country with 881. USAA scored 895, but was not included in the rankings, as the insurer is open only to U.S. military personnel and their families. The report is based on a survey of more than 6,000 people who filed homeowners' claims in 2013 and 2014.
Since 2013, there have been only eight catastrophic (CAT) losses in North America, with five in 2014, J.D. Power said, compared to a record 25 total CAT losses in 2011 and 2012. By applying lessons learned while handling CAT claims to non-CAT claims, and by putting renewed focus on their property insurance business, J.D. Power said insurers have been able to increase property claims satisfaction to 851 on the 1,000-point scale -- up from 840 last year.
The survey scores customer claims satisfaction by examining five factors: settlement; first notice of loss; estimation process; service interaction; and repair process. Participants had filed damages claims within the past 12 months.
“The study shows the significant gains insurers have made in customer satisfaction by applying the lessons learned while handling prior catastrophic losses to all claim processes,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power. “The big storms masked the steady progress the industry has also been making in recent years on routine claims, but we’re really seeing that shine now.
Improving satisfaction is critical for insurers, J.D. Power said, and insurers often realize a return on their investments in customer satisfaction in the form of increased retention. Only 3 percent of customers who were “delighted,” those reporting satisfaction scores 900 or higher, and 7 percent of those who were “pleased,” reporting scores ranging from 750 to 899, switched carriers since their claim was closed. However 9 percent of “indifferent” customers, those with scores from 550 to 749, and 11 percent of “displeased” customers, with scores from 549 and lower, have switched. Plus, 23 percent of “indifferent” customers and 42 percent of “displeased” said they would shop for a new carrier during the next 12 months.
Highlights from the report:
- Satisfaction improved in each of the five factors in 2015; the greatest year-over-year improvements were in settlement and service interaction.
- Satisfaction was highest when the insurance agent was the primary contact throughout the claims process (865) and lowest when the primary contact was the claims professional (793). The percentage who said their agent was their primary contact increased to 24 percent in 2015 from 18 percent in 2014; 7 percent of customers said the claims professional is their primary contact in 2015, down from 9 percent in 2014.
- Claims satisfaction is highest among pre-boomers, born before 1946 (880), and lowest among Gen Y (839) customers, born between 1977 and 1994. Satisfaction among boomers, born between 1946 and 1964, is 850 and 849 among Gen X customers, born between 1965 and 1976.
2015 J.D. Power Property Claims Satisfaction Rankings
- Amica Mutual: 888
- Nationwide: 886
- Country: 881
- Erie Insurance: 874
- Chubb: 872
- Travelers: 868
- CSAA Insurance Group: 860
- Encompass: 857
- Allstate: 856
- State Farm: 852
- The Hartford: 851
- Metlife: 851
- Industry Average: 851
- Farmers: 847
- Safeco: 847
- Liberty Mutual: 846
- California Insurance Group: 844
- American Family: 841
- The Hanover: 826
- Auto Owners Insurance: 822
- Automobile Club Group: 818
** USAA is an insurance provider open only to U.S. military personnel and their families and therefore is not included in the rankings.
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