However, the study reveals that Gen Y is not the least satisfied group when it comes to the individual life insurance experience. Customers in this segment represent the largest percentage of first-time purchasers of a life insurance product, and are demonstrably more apt to use online channels for purchase compared to other generational groups.

“Millennials are a critical demographic for insurance companies, given that they are the largest group of homebuyers and renters, as well as the largest group of prospective life customers,” says Valerie Monet, director of the insurance practice at J.D. Power. “Insurers in one or all of these product categories need to pay very close attention to Millennials and adapt their business model to meet the needs of this large segment, which often involves evaluating the usability of their website and finding new ways to communicate with customers, such as through the use of email, apps and online chat.”

Insurers that are most successful in meeting the needs of millennials have a higher rate of executing specific service practices, the study reveals. Those who are able to inform customers of other products and services, provide access to policy information online, ensure complete understanding of the bill, limit billing errors, resolve issues in one contact and limit customer-reported problems are among the most successful with Gen Y customers.

“In short, insurers benefit from ensuring that their Gen Y customers are well informed, and that there are no issues or problems in servicing their policy,” Monet says.

The J.D. Power study also revealed that customer satisfaction, overall, with homeowners' insurers has improved in 2014, up from 2013. The study asserts that the increase in satisfaction is driven largely by a significant improvement in the price factor.

Overall satisfaction among renters' insurance customers, on the other hand, has declined from 809 in 2013 to 802 this year. Drivers of the decline are lower scores in the interaction and billing and payment factors, the report states.

(Click to chart to the right to see the full ranking of homeowners' providers.)

Between renters' and homeowners' insurance customers, the largest gaps in satisfaction are in the price and policy offerings factors. Price satisfaction is 35 points higher among renters' insurance customers, and policy offerings satisfaction is 16 points higher among homeowners' insurance customers.

When it comes to providers, Amica Mutual ranks highest in the homeowners' insurance segment, with a score of 839. The company performs well in all five factors of overall satisfaction. Auto-Owners Insurance ranks second, followed by State Farm, Erie Insurance and American Family.

In the renters' insurance segment GEICO ranks highest with a score of 811, closely followed by State Farm, scoring 810. GEICO performs well in the policy offerings, price and billing and payment factors, while State Farm succeeds in the interaction factor. (See chart below.)