Everyone appreciates companies and people that are easy to work with — a pleasant experience builds loyalty and trust.
With homeowners' insurance premiums remaining stable, insurers are focusing on the customer experience to differentiate themselves from the competition, according to the J.D. Power 2016 U.S. Home Insurance Study.
On average, customers report an annual premium charge of $1,186 for homeowners' insurance in 2016, remaining relatively unchanged over the past few years.
|Customer satisfaction more important than ever
The shift in insurers’ strategic priorities has resulted in a significant increase in satisfaction, according to Costa Mesa, California-based market research company J.D. Power. Overall customer satisfaction with homeowners' insurers is 804 (on a 1,000-point scale), a 17-point increase from 2015.
While homeowner satisfaction with price is up (+16 points) because rates are stable, the increase in satisfaction with policy offerings (+25) is actually a much larger driver of the overall annual change in satisfaction. Improved communication is helping customers to see the value in the products they purchase, according to J.D. Power.
Among homeowner customers, satisfaction also improves significantly in claims (+19 points) and interaction (+10).
“Although many insurers have made great strides in improving the customer experience, there is still significant opportunity to improve customer perceptions of both products and services,” said Valerie Monet, director of the insurance practice at J.D. Power. “New entrants into the market, such as on-demand insurance, will likely result in shifts in customer expectations. Customer satisfaction is going to be more important than ever before for competitive position and growth.”
|Agent and broker interactions critical
The J.D. Power report found that while high-net-worth Gen Y customers are more satisfied overall with their homeowners' insurance than are high-net-worth baby boomers, they are less satisfied with interaction with their insurer, specifiically with their agent experience. Focusing on improving agent and broker interactions will be critical for insurers looking to attract and retain customers, according to J.D. Power.
Satisfaction in the homeowners segment was measured by examining five factors:
- |
- Interaction.
- Policy offerings.
- Price.
- Filing process and policy information.
- Claims.
Here are the top 20 homeowners' insurance companies for customer satisfaction based on J.D. Power's 2016 rankings:
15. Auto Club Group
Total customer satisfaction score: 807.
2. Auto Club of Southern California Insurance Group
Total customer satisfaction score: 835.
(Photo: Amica Mutual Insurance 2015 Annual Report screenshot)
|1. Amica Mutual
Total customer satisfaction score: 864.
Amica Mutual ranks highest in the homeowners insurance segment for a 15th consecutive year. Amica Mutual performs particularly well in the billing process and policy information, interaction, policy offerings and price factors, according to J.D. Power.
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Jayleen R. Heft
Jayleen Heft is the digital content editor for PropertyCasualty360.com. Contact her at [email protected].
