“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, director of insurance industry analytics at J.D. Power.

Driving the increase in satisfaction overall, and specifically among Gen Y auto insurance claimants, was the offering of multiple communication options, such as email, online, and telephone, during the claims process. The study found that the use of technology to check the status of a claim increased year over year by five percentage points to 42 percent of claimants. Email and online updates each increased by two percentage points from last year to 27 percent and 17 percent, respectively.

J.D. Power said, however, that technology could not fully replace humans during the claims process. Its study found that overall satisfaction was highest among customers who first contacted their agent when filing a claim at 882, compared with 848 among those who filed a claim directly through a website. In fact, only seven percent of customers overall preferred to use digital channels (web or app) to report their claim. Gen Y had the highest preference for digital channels to report a claim, at 10 percent.

“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,” said Mr. Garrett. “Even the younger generations, which are most comfortable using digital channels, still want to talk with someone. We see the biggest gains in satisfaction when technology is used as a complementary channel for receiving status updates.”

The study measured customer satisfaction with their most recent automobile collision claim. Depending on the complexity of the claim, claimants experienced some or all of the following areas measured in the study: first notice of loss; service interaction; appraisal; repair process; rental experience; and settlement. Satisfaction was calculated on a 1,000-point scale.

Other key findings of the study included:

- Changing Role of the Agent: While some insurance providers are reducing the agent's role in the claims process, the study found that 80 percent of customers who purchased their policy through a local agent still called their agent first to report or seek advice regarding a claim. Among customers who called their agent first, 64 percent said their agent reported their claim, while 20 percent were transferred by their agent to a call center and 16 percent were redirected. Overall customer satisfaction was 882 when the agent filed the claim, but slipped to 858 when the customer was transferred to a call center and fell even further to 824 when they were instructed to contact the call center.

- Costs of a Claim: Among the two-thirds of customers who renewed their auto insurance policy since filing a claim, 28 percent said their insurance premiums had increased.

- Satisfaction Affects Customer Loyalty, Advocacy: Satisfaction with the claims experience affected customer retention and referrals. Among delighted claimants (overall satisfaction scores of 900 or higher), 84 percent said they “definitely” would renew their policy and 83 percent “definitely” would recommend their insurer. Among displeased claimants (scores of 549 and below), only 12 percent said they “definitely” would renew and seven percent “definitely” would recommend their current insurer.

The Hartford ranked highest in auto claims satisfaction with an index score of 891, a 21-point improvement from 2015. The Hartford performed particularly well in the first notice of loss and service interaction factors, according to J.D. Power.

Erie Insurance (886) ranked second, followed by Auto-Owners Insurance (885), American Family (874), Amica Mutual (874), and Nationwide (874).

Learn more: http://www.jdpower.com/resource/jd-power-us-auto-claims-satisfaction-study.