It seems that millennials (individuals born between 1977 and 1994) and the largest group of homebuyers and renters in the U.S., are less happy with their insurance experiences than any other age group.
In a study released by J.D. Power, Gen Y consumers are the least satisfied when compared to other generations. On a 1,000-point scale, Gen Y customers averaged 755 for their homeowners insurers and 784 for their renters insurer providers. Satisfaction ratings were highest among those born before 1946 (pre-boomers) at 846 for homeowners insurance and renters insurance was highest among those born between 1946-1964 (boomers) at 829.
The study looked at five different factors for homeowners and renters insurance: interaction, policy offerings, price, billing and payment, and claims. Satisfaction factors for individual life insurance included four factors: price; policy offerings; interactions — which also addressed call center, website and local agent/financial advisor; and billing and payment.
According to the study, Gen Y satisfaction with homeowners insurance was lower across all five factors than boomers, but particularly in the area of interaction (-63 points) and claims (-59 points). While millennials didn't score the lowest for life insurance products, they do represent the largest group of first-time purchasers and are more likely than their generational counterparts to purchase this and other products online.
“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,” said Valerie Monet, director of the insurance practice at J.D. Power in a press release. “Insurers in one or all of these 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.”
Monet says that insurers benefit the most when their Gen Y customers are well-informed and don't experience service problems with their policies.
According to the J.D. Power 2014 U.S. Household Insurance Study, Amica Mutual (839) ranks the highest in the homeowners insurance segment, followed by Auto-Owners Insurance (829), State Farm (813), Erie Insurance (810) and American Family (805). USAA (903), which is available only to military personnel and their families, is not included in the rankings.
For renters insurance, Geico (811) performed well in the policy offerings, price/billing and payment factors. State Farm (810) had high ratings for the interaction factor.
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