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J.D. Power Releases Annual Auto Claims Satisfaction Study, Insurer Rankings

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Oct. 26, 2015—J.D. Power released the results of its 2015 U.S. Auto Claims Satisfaction Study, and the company says that overall consumer satisfaction has remained flat.

The study measures customer satisfaction with their most recent automobile insurance claims—polling 11,469 auto insurance customers who settled a claim within the six months prior to taking the survey. Areas measured in the study include first notice of loss, service interaction, appraisal, repair process, rental experience, and settlement.

Satisfaction is calculated on a 1,000-point scale.

Overall customer satisfaction with the insurance claims process has not changed from 2014 to 2015 with a score of 857, and the number of severe claims—those requiring  a tow or deemed a total loss—have seen a notable increase.

The study also found that overall satisfaction with the claims filing process among Gen Y claimants, which has grown to 33 percent of the claims-filing population in 2015 from 28 percent in 2014, has grown to 827 in 2015, up from 819 in 2014. Gen X customers also had improved satisfaction with a rating of 855 in 2015 from 847 in 2014. The most satisfied group was the pre-boomers, with a satisfaction of 894, which is down from its 2014  score of 911. Boomers, the largest segment of the claims-filing population at 39 percent, have experienced decreased satisfaction scores in 2015 with a rating of 875, which is slightly down from 2014 at 876.

“The efforts the insurance providers are making to improve the claims experience among Gen Y and Gen X claimants are having an impact,” said Mark Garrett, director of insurance industry analytics at J.D. Power.  “Gen Y is the only generation of auto insurance customers that is growing. It’s critical that providers continue to focus on those younger generations as they are the future of their business.”

Garrett also noted that insurance providers need to be careful not to take a one-size-fits-all approach, either overall or by generational group.

“Consumers’ needs vary greatly based on their attitudes, preferences, plans, intentions and behaviors,” said Garrett. “Providers need to know their customers and focus on channels and solutions that work for them.”’

Claimants whose vehicles incurred only glass/windshield damage or was stolen, or who only filed a roadside assistance claim were excluded from the study. The data was collected from Nov. 2014 through Sept. 2015.

Ranking the Insurers

  • Auto-Owners Insurance ranked the highest out of insurance companies for auto claims satisfaction with an index score of 893, a 14-point improvement from last year. Auto-Owners Insurance performed particularly well in the first notice of loss, service interaction, repair process and settlement factors.
  • Rounding out the top-five were  Amica Mutual (885 point) in second; Auto Club of Southern California Insurance Group (871), in third; The Hartford (870), fourth; and Nationwide (866), fifth.
  • State Farm finished in 11th place, a single point above the industry average of 857.
  • Allstate scored 861 points, and American Family came in at 859.
  • Both Geico (854) and Progressive (853) finished with below average scores.

Additional key findings of the study:

  • The percentage of claims for cars that are drivable and repairable has decreased to 60 percent of all claims in 2015, down from 69 percent in 2011 with a 870 satisfaction score.
  • Satisfaction drops to 811 among the 17 percent of customers who file a claim for which the vehicle is a total loss.

To learn more about the studies, visit J.D. Power’s website.

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