Auto insurance satisfaction numbers are up and it's due in large part to Gen Y (those born between 1977-1994), according to the J.D. Power 2015 U.S. Auto Insurance Study.
The study involves five different factors that contribute to customer satisfaction: price, policy offerings, billing and payment, and claims, which are measured on a 1,000-point scale.
Overall satisfaction with auto insurers reached an all-time high of 818, an improvement of eight points over 2014. Satisfaction rates varied, but Gen Y showed the most growth – improving by 21 points. Gen X (those born between 1965-1976) increased by six points and Boomers (born 1946-1964) by four points, while Pre-Boomers (born before 1946) actually dropped by three points.
The study also found that customer preferences when it comes to interacting with their insurers are definitely changing, with many preferring the option for self-service. Twenty-seven percent of Gen Y customers prefer digital self-service exclusively, an increase from 21% in 2011. Gen X jumped from 19% in 2011 to 23%; Boomers showed a slower increase, going from 10% to 12%; and Pre-Boomers also saw a 2% jump from 4% to 6%. Interestingly, while consumers preferred self-service through company websites, they also rated it lower than other interaction channels.
“While customers across all generations are able to use online self-service for basic tasks such as making a payment and gathering information about their account, they should also be able to resolve more complex issues online,” said Valerie Monet, director of the insurance practice at J.D. Power. “It is critical for insurers to resolve customers' service needs entirely on the website.” She adds that greater website usage can minimize service costs and free agents to cultivate new business.
There are times when customers would prefer to speak to a company representative such as when discussing price changes or dealing with questions about policy coverage.
Forty-nine percent of customers across all age groups said they “definitely will” recommend their current insurer (the same as in 2014) and 50% said they “definitely will” renew their policy (down 1% from 2015).
J.D. Power also found that satisfaction varied by region with eight of the 11 study regions showing significant increases in overall customer satisfaction compared to 2014. The full study can be found here.
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