Customer satisfaction with the claims process following an auto accident is continuing to improve, according to J.D. Power's "2016 U.S. Auto Claims Satisfaction Study."
Age seems to be a major driver in the satisfaction ratings with pre-boomers (those born before 1946) having the highest satisfaction number at 912 on a 1,000-point scale.
Boomers (individuals born in 1946-1964) came in second at 878.
Gen X (born in 1965-1976) showed the only decrease in satisfaction, dropping eight points from last year to 847.
Gen Y (born between 1977 and 1994), which comprises 40 percent of the claimants in the study, increased 17 points to 844, the lowest satisfaction number in the study.
The number of Gen Y respondents increased 7 percent, making them the largest group in the study, followed by 20 percent of Gen Xers. The number of pre-boomers and boomers comprised less than 40 percent of the respondents, as their groups continue to shrink.
"Gen Y is a large and influential segment of the claims market, so it's encouraging to see that insurance providers continue to focus on improving this generation's satisfaction," said Mark Garrett, J.D. Power's director of insurance industry analytics.
The study shows an increase in the number of consumers who prefer to have multiple communication channels, such as email, telephone and online options during the claims process, however, technology has not replaced their desire to interact with a real person.
While the use of technology to follow a claim's process has increased to 42 percent of respondents, overall claims satisfaction was highest (882) when claimants actually contacted their agents first when filing a claim, compared to a rating of 848 for those who chose to file claims through a company website. The study found that only 7 percent of claimants overall prefer using digital channels, such as a website or app, to report a claim, although Gen Y consumers had a slightly higher preference at 10 percent.
Garrett said, "While technology offers a customer more options, what we find is that even when customers file a digital claim they still want to talk with someone to get an explanation of the process, what to expect along the claims pathway and the timing." He added that even though younger policyholders are comfortable using technology, the biggest gains occurred when it was used to complement other channels for receiving updates.
|Other study findings
According to the study, agents are a key factor in determining a policyholder's satisfaction with how a claim is handled. Eighty percent of policyholders who purchased their insurance through an agent still contacted the agent first to report the claim, or to at least seek advice and information. For those who contacted their agent about the claim, 64 percent said the agent actually reported the claim for them, 20 percent were transferred to a call center and 16 percent were redirected to another source.
Customer satisfaction was highest (882) when the agent reported the claim, but slipped almost 60 points to 824 when the policyholder was told to contact the call center directly. Claimants who were transferred to a call center were slightly happier, but their satisfaction with the process still fell 24 points to 858.
Insureds who filed a claim with their insurer also reported an increase in their insurance premiums. The study found that of the two-thirds of respondents who renewed their policies, 28 percent saw their rates rise.
Claims satisfaction also has a direct impact on customer retention and referrals. Customers with satisfaction scores of 900 or higher were the most likely to renew their policy (84 percent definitely will) and refer others (83 percent definitely will) to their insurer. When claimants were unhappy and scored 549 or lower, the number saying they would definitely renew dropped to 12 percent and only seven percent were willing to recommend their insurer.
More than 12,000 consumers participated in the study, and the information was collected between November 2015 and August 2016.
For a look at which companies were rated the highest, read on:
Policyholders were happiest when insurers used technology to complement their other channels for filing a claim. (Photo: iStock)
|11. Hanover Insurance Group
Overall customer satisfaction index ranking: 867.
Overall customer satisfaction index ranking: 867.
The number of pre-boomer and boomer drivers is quickly shrinking. (Photo: iStock)
|9. Country Financial
Overall customer satisfaction index ranking: 867.
Overall customer satisfaction index ranking: 867.
Overall customer satisfaction index ranking: 869.
Overall customer satisfaction index ranking: 874.
Overall customer satisfaction index ranking: 874.
Overall customer satisfaction index ranking: 874.
Policyholders have higher satisfaction ratings when the first notice of loss goes to their agent. (Photo: iStock)
|3. Auto-Owners Insurance
Overall customer satisfaction index ranking: 885.
The Erie Insurance headquarters, built in 1956, was inspired by Independence Hall in Philadelphia. (Photo: Erie Insurance)
|2. Erie Insurance
Overall customer satisfaction index ranking: 886.
Overall customer satisfaction index ranking: 891.
Hartford Financial saw a 21-point improvement year over year, performing exceptionally well in the areas of the first notice of loss and service interaction.
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Patricia L. Harman
Patricia L. Harman is the editor-in-chief of Claims magazine, a contributing editor to PropertyCasualty360.com, and chairs the annual America's Claims Event (ACE), which focuses on providing claims professionals with cutting-edge education and networking opportunities. She covers auto, property & casualty, workers' compensation, fraud, risk and cybersecurity, and is a frequent speaker at insurance industry events. Contact her at [email protected]
