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Category: InsuranceUnited States

  • 2025 U.S. Insurance Shopping Study

    Despite Slowing Rate of Increase in Auto Insurance Pricing, Most Customers Still Shopping, JD Power Finds

    2025-04-25

    jillian.breska

    TROY, Mich.: 29 April 2025 — The rate at which auto insurance premiums increased in 2024 declined to less than 2% at year-end from 13% at the beginning of the year. But, even as auto insurance customers in the United States have gained some pricing relief, the percentage of customers shopping for insurance year over year jumped to 57% from 49%, according to the JD Power 2025 U.S. Insurance Shopping Study,SM released today.

    “Auto insurance rate taking reached multi-decade highs in the first quarter of 2024, which put record numbers of customers into the market shopping for lower-priced policies as the year progressed,” said Stephen Crewdson, managing director of insurance business intelligence at JD Power. “As rate activity began to fall in the second half of 2024, many shoppers were successful at finding lower-priced policies. That combination of increased shopping and less rate taking created a bit of a snowball effect for much of the year, but we are seeing signs that shopping rates are starting to normalize. A potentially bigger concern for the industry right now might be the increased interest many consumers are showing in embedded insurance providers, like auto dealers, financing companies and manufacturers.”

    Following are some key findings of the 2025 study:

    • Insurance price volatility stirs surge in shopping activity: More than half (57%) of auto insurance customers have actively shopped for a new policy in the past year, the highest shopping rate ever recorded in the 19-year history of the study. Shopping rates were higher in Q1 2024, in line with record highs in insurance rates. As price increases slowed throughout the year, shopping rates increased.
    • Stickier customers up for grabs: One-third (33%) of customers who are actively shopping for an auto policy are seeking to bundle their auto policy with a homeowner’s policy. Customers who bundle insurance have longer tenures with their insurer (7.0 years on average vs. 5.5 among those who do not bundle), which makes winning these customers a priority for carriers.
    • Growing interest in dealer- and manufacturer-provided insurance: More than one-third (37%) of auto insurance customers say they are interested in embedded insurance, a form of auto insurance that is sold directly through the automobile dealer or manufacturer. Interest is highest among Generations Y/Z[1] (47%), and among those who say their primary reason for shopping their auto policy is service (48%).
    • Usage-based insurance (UBI) sees a small resurgence: More often, insurers are offering UBI programs, which use telematics software to monitor an insured’s driving style and assign rates based on safety and mileage metrics. This year, 17% offered UBI programs to shoppers, up from 15% in 2024 but down from 22% in 2023.

    Study Ranking

    Erie Insurance ranks highest among large auto insurers in providing a satisfying purchase experience for the second consecutive year, with a score of 714. ACG (AAA) (707) ranks second and State Farm (699) ranks third.

    The JD Power U.S. Insurance Shopping Study, now in its 19th year, captures advanced insight into each stage of the shopping funnel and is based on responses from 12,720 insurance customers who requested an auto insurance price quote from at least one competitive insurer in the previous six months. The study was fielded from April 2024 through January 2025.

    For more information about the U.S. Insurance Shopping Study, visit https://www.jdpower.com/business/resource/jd-power-us-insurance-shopping-study.

    About JD Power
    JD Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected] 

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

    1JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2006). Millennials (1982-1994) are a subset of Gen Y.

     

  • 2025 U.S. Insurance Digital Experience Study

    Auto Insurer Websites and Apps Become Battleground for New Customers as Policy Shopping Activity Skyrockets, JD Power Finds

    2025-05-13

    jillian.breska

    TROY, Mich.: 14 May 2025 — More than half (57%) of auto insurance customers have actively shopped for a new policy in the past year, the highest shopping rate ever recorded by JD Power, and that’s putting more pressure than ever on digital channels, which have become the primary tool through which customers purchase insurance. According to the JD Power 2025 U.S. Insurance Digital Experience Study,SM released today, 47% of auto insurance shoppers now purchase their policies through digital channels, but the experiences they are having on those websites and apps is notably uneven from one insurer to the next.

    “The primary communications conduit customers now have with their auto insurer is a website or an app, so that’s really ramped up pressure on insurers to put their best foot forward on digital properties,” said Eric McCready, director of digital solutions at JD Power. “Some insurers are doing this much better than others. Particularly in quoting new policies and comparing prices and coverages, the data shows a stark divide between top and bottom performers, which could have serious effects on new business growth during this period of heightened shopping activity.”

    The U.S. Insurance Digital Experience Study evaluates the digital consumer experiences of both property and casualty (P&C) insurance shoppers seeking quotes and existing customers conducting typical policy-servicing activities. It also examines the functional aspects of the service and shopping experiences. Service experience examination includes desktop web, mobile web and app in four factors: design; information; tools/capabilities; and system performance. Shopping experience examination includes desktop and mobile web in four factors: design; information; quoting; and system performance. The study was conducted in collaboration with Corporate Insight, the leading provider of competitive intelligence and user experience research to the financial services and healthcare industries.

    “Across both shopping and servicing functions, delivering a seamless digital experience is a win-win for insurers,” said Justin Suter, research manager at Corporate Insight. “Customers have shown that they want to interact with their insurers digitally, and when insurers deliver a good experience, they tend to stay on the digital channel, which delivers a better all-around experience at a lower administrative cost for the insurer.”

    Following are some key findings of the 2025 study:

    • Digital becomes primary conduit to auto insurance buyers: Nearly half (47%) of all insurance policy buyers now purchase through digital channels, significantly more than through agents (35%) and more than double that of call centers (17%), putting enormous pressure on insurers to deliver a great first impression on their websites and apps during this period of heightened policy shopping activity.
    • Policy quote-related tasks expose variability of digital experiences: The largest gaps between top and bottom digital experiences occur in quote-related functions, such as requesting a quote and comparing prices and coverage. Customer satisfaction with quoting among the top-performing insurers is 539 (on a 1,000-point scale), while among the lowest-performing insurers satisfaction averages 453.
    • Great digital experiences beget more digital usage: The better the digital experience customers have with their auto insurer, the more likely they are to keep using digital channels. When customers have an excellent digital experience (overall satisfaction score of 801 or higher), 92% say they “definitely will” use digital channels in the future. When customers have a poor digital experience (overall satisfaction score of 500 or less), only 40% say they are likely to use digital channels in the future.
    • Multifactor authentication linked to customer satisfaction: Customer satisfaction with the auto insurance desktop website and mobile website is higher when multifactor authentication is required, underscoring the importance of perceived data security to auto insurance customers.

    Study Rankings

    Nationwide ranks highest in the service segment with a score of 730. Amica (724) ranks second. American Family (715) and Progressive (715) each rank third, in a tie.

    Amica and Erie Insurance rank highest in a tie in the shopping segment, each with a score of 559. American Family (556) ranks third.

    The U.S. Insurance Digital Experience Study was redesigned for 2025. Scores are not comparable with previous studies. The 2025 study is based on 11,529 evaluations and was fielded in from January through March 2025.

    For more information about the U.S. Insurance Digital Experience Study, visit https://www.jdpower.com/business/insurance/us-insurance-digital-experience-study.

    About JD Power
    JD Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected] 

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

     

  • 2025 U.S. Property Claims Satisfaction Study

    Widespread Price Increases, Extreme Weather Events and Long Repair Cycle Times Strain Customer Satisfaction with Homeowners Insurance Claims, JD Power Finds

    2025-03-18

    jillian.breska

    TROY, Mich.: 18 March 2025 — A homeowners insurance property claim should be a moment-of-truth opportunity when insurers make good on their coverage promises to their customers, but instead it has increasingly become a pain point. According to the JD Power 2025 U.S. Property Claims Satisfaction Study,SM released today, the sheer volume of catastrophic events, history of widespread premium increases and slow repair cycle times have conspired to strain customer satisfaction with the homeowners insurance claims experience.

    “There were 27 catastrophic events in 2024 and 28 the year before. Homeowners insurers are currently losing roughly one nickel on every dollar of premium they collect, and with total cost of events like the California wildfires still being assessed, there seems to be no end in sight,” said Mark Garrett, director of insurance intelligence at JD Power. “Customers are, in essence, paying higher prices for slower service. The average claimant does not receive final payment on a claim until 44 days after the first notice of loss, and unless insurers are communicating frequently and clearly along the way, customer satisfaction suffers.”

    Following are some key findings of the 2025 study:

    • Repair cycle times continue to rise: The average claim cycle time—the amount of time from filing the claim to finished repairs—is now 32.4 days and the average cycle time from first notice of loss to final payment is now more than 44 days, both of which are the longest times since 2008 when the study began. The average overall customer satisfaction score for a claim that is completed within 10 days is 762 (on a 1,000-point scale). That score falls 167 points to 595 when repairs take more than 31 days.
    • Insurer-initiated premium increases sap customer satisfaction: Half of customers who were surveyed for this year’s study experienced insurer-initiated premium increases in the past 12 months, with the largest proportion of increases occurring in Arkansas, Colorado, Kansas, Michigan, Minnesota, Nebraska and Oklahoma. Overall satisfaction scores are 101 points lower (629 vs. 730) when insurers initiate a premium increase unrelated to having a claim than those who did not experience a premium increase.
    • Ease of communication has major influence on customer experience: The one thing insurers can do to blunt the negative effects of higher prices and longer claim cycle times is to make it easier to communicate with them. Overall satisfaction scores are more than twice as high (777) when customers say it is very easy to communicate with their insurer than when they say it is very difficult or somewhat difficult to communicate with them (337). Common failure points in the communication process include often needing to leave voicemails; needing to call with questions repeatedly; and not receiving timely follow-up emails and text messages. “In fact, 82% of customers are interacting often with their insurer via their non-preferred communication channels,” Garrett said.
    • Digital helps, especially with younger customers: Overall satisfaction is higher among customers who use digital tools when filing a claim, submitting photos that are used in the estimate and receiving proactive updates. Among digital channels, app usage results in the highest levels of satisfaction throughout the process. The Gen Z[1] and Millennial cohorts are most comfortable using digital tools, with 87% of customers in these generations indicating they are comfortable managing the entire claims process digitally. In contrast, nearly 40% of Boomers and Pre-Boomers say they are not comfortable doing the same.

    Study Ranking

    Chubb ranks highest in property insurance claims experience with a score of 773. Amica (745) ranks second and The Hartford (725) ranks third.

    The U.S. Property Claims Satisfaction Study was redesigned for 2025, thus scores are not comparable with previous-year studies. The study measures satisfaction with the property claims experience among insurance customers who have filed a claim for property damages across eight core dimensions (listed in order of importance): fairness of the claim settlement; level of trust; time it took to settle the claim; people; digital channels; communicated with me how and when I want; ease of starting the claim process; and ease of resolving the claim. The study is based on responses from 5,178 homeowner insurance customers who filed a claim within the previous nine months. The study was fielded from January 2024 through December 2024.

    For more information about the U.S. Property Claims Satisfaction Study, visit
    https://www.jdpower.com/business/resource/us-property-claims-satisfaction-study.

    About JD Power
    JD Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected] 

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

    1JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2006). Millennials (1982-1994) are a subset of Gen Y.

     

  • Databricks Collaboration Announcement

    JD Power Brings Industry-Leading Customer Behavior Analytics to Databricks Marketplace with Delta Sharing Integration

    2025-01-23

    jillian.breska

    TROY, Mich.: 23 Jan. 2025 — JD Power, a global leader in data analytics, today announced a collaboration with Databricks, the data and AI company, to bring its industry-leading customer behavior datasets to the Databricks Marketplace using Delta Sharing. 

    Focused initially on the insurance industry, this initiative will provide a unique daily, competitive view of auto, homeowners and renters insurance shopping and loyalty behaviors for the top carriers at national and state levels. It also will provide cross-industry Net Promoter Score®[1] brand advocacy datasets and make JD Power data available to Databricks Marketplace users in the standardized Delta sharing format that can be seamlessly integrated into existing analytics, forecasting and AI models.

    The Databricks Marketplace is an open marketplace for data, analytics and AI that is powered by Delta Sharing. Delta Sharing, an open source approach to sharing, enables seamless, secure data sharing across platforms and clouds without replication with strong security and governance. JD Power will continue to expand its offerings of datasets on the Databricks Marketplace in the coming months.

    “The global data marketplace is projected to become a $3.5 billion[2] industry by 2028 as businesses in virtually every sector have become increasingly reliant on accessing world class data in a standardized format to power their analytics and AI initiatives,” said Keith Webster, president of global business intelligence at JD Power. “JD Power has built its reputation on delivering the most robust, comprehensive and timely data insights available, anywhere, and by making these resources accessible via the Databricks Marketplace and Delta Sharing we are ensuring that we continue to make those insights accessible long into the future.”

    “We are excited to welcome JD Power to the Databricks ecosystem,” said Jay Bhankharia, senior director of marketplace and data partnerships at Databricks. “This alliance represents a significant step forward in integrating JD Power’s trusted consumer and market intelligence datasets into the Databricks platform. By merging JD Power’s deep industry expertise with Databricks’ advanced Delta Sharing technology, we’re empowering organizations to gain richer, real-time insights into their customers. This collaboration enhances predictive capabilities, enabling businesses to make more informed, data-driven decisions that drive greater impact and value.”

    About JD Power
    JD Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected] 

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

    1Net Promoter,® Net Promoter System,® Net Promoter Score,® NPS,® and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
    2Research and Markets, Global Data Marketplace Platform Market Size, Share & Industry Trends Analysis Report

     

  • 2024 U.S. Claims Digital Experience Study

    Customer Satisfaction with Digital Claims Process Surges as Insurance Carriers Load New Features onto Apps, JD Power Finds

    2024-11-26

    jillian.breska

    TROY, Mich.: 3 Dec. 2024 — Auto and home insurers have spent the past year adding dozens of new features and refinements to their mobile apps, such as automatic collision reporting capabilities, enhanced image upload and body shop selection tools. According to the JD Power 2024 U.S. Claims Digital Experience Study,SM released today, these investments are resulting in significantly higher customer satisfaction scores. Overall satisfaction with the digital insurance claims process is 871 (on a 1,000-point scale), up 17 points from 2023.

    “The digital channel has now surpassed traditional phone-based communication as the most satisfying way for insurance customers to submit a new claim,” said Mark Garrett, director of global insurance intelligence at JD Power. “After years of slow growth in the usage of digital channels for claims reporting, insurers’ investments into developing these tools and promoting usage have really paid off as more insureds than ever are using them. Auto and home insurers have finally gotten the digital formula right with streamlined reporting tools, proactive updates and well-designed apps. However, the industry still has some work to do when it comes to helping insureds navigate between digital and offline channels, which can sometimes create unnecessary friction in the claims process.”

    The U.S. Claims Digital Experience Study, now in its fifth year, evaluates digital experiences among P&C insurance customers throughout the claims process. It examines the functional aspects of desktop, mobile web and mobile apps based on four factors: visual appeal; clarity of the information; navigation; and range of services. The study is conducted in collaboration with Corporate Insight, the leading provider of competitive intelligence and user experience research to the financial services and healthcare industries.

    “Property and casualty insurers made an average of 6.75 updates to their mobile apps in 2023, an increase from 5.72 in 2022, many of which augmented the resources provided to policyholders throughout the claims process,” said Michael Ellison, president of Corporate Insight. “The industry is reaching an important tipping point in which digital channels—particularly mobile apps—are the primary conduit to insurance customer engagement. This is particularly important as younger generations tend to be mobile-first. As technology improves, insurers can leverage mobile apps to offer a powerful customer experience at a pivotal juncture in the insurer-insured relationship.”

    Following are some key findings of the 2024 study:

    • Customer satisfaction surges: Overall customer satisfaction with the auto and home insurance digital claims experience rises 17 points this year, driven largely by improvements in the range of services offered on mobile apps and websites and the visual appeal of those digital properties.
    • Apps become center of insurance customer experience: Customer satisfaction scores are highest when insurer mobile apps were used to report a claim; submit photos and/or videos; and receive updates from the insurer.
    • Pace of digital innovation continues to grow: Insurers implemented an average of 6.75 updates to their mobile apps in 2023,1 with the most changes occurring in the claims function. A total of 21 different changes were made to the claims functionality on insurance mobile apps during 2023, nearly double those in 2022.
    • Disconnect between digital engagement and human follow-up: While 84% of claimants say their insurer provides an easy digital communication process, just 39% say their insurer always responds in a timely fashion to emails and text messages. Furthermore, nearly 20% of customers say they used more than one channel when they had a question, a frustration point that reduces satisfaction by more than 100 points. Among those who used more than one channel for the same topic, email, apps and phone calls are the most frequently cited.

    The 2024 U.S. Claims Digital Experience Study is based on 2,982 evaluations provided by auto or home insurance customers who filed a claim in the past 12 months. The study was fielded from May through September 2024.

    For more on the U.S. Claims Digital Experience Study, visit https://www.jdpower.com/business/insurance/us-insurance-claims-digital-experience-study.

    About JD Power
    JD Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

    About Corporate Insight
    Corporate Insight delivers competitive intelligence, user experience research and consulting services to the nation’s leading financial and health institutions. As the recognized industry leader in customer experience research since 1992, CI has been the trusted partner to corporations seeking to improve their digital capabilities and user experience. Their best-in-class research platform and unique approach of analyzing the actual customer experience helps corporations advance their competitive position in the marketplace. To learn more, visit http://www.corporateinsight.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected] 

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

    1Corporate Insight’s Mobile App Pace of Change Report, January 2024

     

  • 2024 U.S. Auto Claims Satisfaction Study

    Auto Insurance Repair Cycle Times Improve but Price Increases Take a Toll, JD Power Finds

    2024-10-26

    jillian.breska

    TROY, Mich.: 29 Oct. 2024 — Auto insurers have been fighting two major headwinds ever since the pandemic: rising costs and longer repair cycle times. This year, according to the JD Power 2024 U.S. Auto Claims Satisfaction Study,SM released today, some relief is in sight for one of those trends. The study shows that the average repair cycle time for claims filed later in the fielding period is 18.9 days, which is down 5.0 days from 23.9 days in the early fielding period. While that may offer some relief to insurers and their customers, the cost side of the equation has gone in the opposite direction, with the average repair cost rising 26% in the past two years. Premiums have followed suit, rising 15% during the past year.

    “The claims process is the moment of truth for auto insurance customers, so when they experience rate increases and then have a claim with longer-than-expected repair times and other inconveniences, their overall trust in the brand is greatly diminished,” said Mark Garrett, director of global insurance intelligence at JD Power. “In fact, 80% of auto insurance customers who have poor claims experiences have already left or say they plan to leave that carrier. That makes this year’s significant improvement in repair cycle times very good news for insurers and their customers. However, premium increases have created a new challenge for insurers as trust is eroding and affecting the way customers view their claims. There are still many challenges the industry needs to navigate to maintain customer loyalty.”

    Following are some key findings of the 2024 study:

    • Relief for repair cycle times: The overall average repair cycle time in this year’s study is 22.3 days, down 1.0 day from the 2023 study. However, when results are broken out into the quarter in which the claim was filed, cycle times have improved steadily since peaking in early 2023, for a total 5.0-day reduction throughout fielding of the 2024 study.
    • Premium increases following claims crush customer satisfaction: Overall, 48% of study respondents experienced a premium increase during the past 12 months. Satisfaction is particularly low among those who incurred increases prior to their claim, and these customers may have been entering the claim process already upset by rising prices. The study shows that these customers were more likely to have an issue—such as communication with the insurer not being very easy or timing expectations not being managed—and thus they didn’t feel more at ease after submitting their claim. Furthermore, nearly half of those increases were attributable to claims. Compared with those customers who did not have an increase, satisfaction scores fall more than 100 points (on a 1,000-point scale) following a claim-related rate increase. This negative effect is most pronounced among Boomers1 and Pre-Boomers, with a 178-point decrease in trust following a claim-related rate increase.
    • Digital claims processing drives satisfaction but not for all customers: Insurers have been focused on improving mobile apps and the outcome appears to be paying off. For the past three years, claims filed via call centers or agents outperformed digital channels, but now digital is receiving higher scores with mobile apps achieving the highest scores. In addition, satisfaction is higher among those who stay in the app to submit photos and receive status updates (775) than for all other digital experiences. However, this group comprises only 13% of customers. Boomers and Pre-Boomers are still hesitant to adopt fully digital processes, with 32% stating they disagree with being comfortable using digital tools for the entire claim. Customers also rate digital channels lower than speaking with someone if they have a specific question. Thus, generational differences and the types of tasks being performed are still affecting digital experiences.
    • Good communication is key to satisfying claim experience: The No. 1 key performance indicator in the study is to ensure that communicating with insurer reps is very easy. Being accessible; responding in a timely fashion; reps providing consistent service; managing timing expectations; and providing options for proactive updates are all critical elements of communication throughout a claim. This is another area in which digital tools play a key role in customers’ ability to access information and stay informed.

    Study Ranking

    NJM Insurance Co. ranks highest in overall customer satisfaction with a score of 782. Amica (746) ranks second and Erie Insurance (733) ranks third.

    The U.S. Auto Claims Satisfaction Study was redesigned for 2024. Scores are not comparable year over year with previous studies. The 2024 study is based on responses from 9,725 auto insurance customers who settled a claim within the past nine months prior to participating in the survey. It measures customer experience across eight core dimensions (in order of importance): trust; fairness of settlement; time to settle claim; people; communication; ease of resolving claim; ease of starting claim; and digital channels. The study excludes claimants whose vehicle incurred only glass/windshield damage or was stolen, or who only filed a roadside assistance claim. The study was fielded from October 2023 through August 2024.

    For more information about the U.S. Auto Claims Satisfaction Study, visit https://www.jdpower.com/resource/jd-power-us-auto-claims-satisfaction-study.

    About JD Power
    JD Power is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected]

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

    1JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2006). Millennials (1982-1994) are a subset of Gen Y.

     

  • 2024 U.S. Individual Annuity Study

    Majority of Individual Annuity Customers Struggle with Financial Health, JD Power Finds

    2024-10-10

    jillian.breska

    TROY, Mich.: 17 Oct. 2024 — Financial advisors and insurance agents offering individual annuity products are confronting a particularly challenging set of dynamics in the current marketplace. According to the JD Power 2024 U.S. Individual Annuity Study,SM released today, the majority (59%) of current annuity customers struggle with their financial health1 and many do not fully understand the products they are buying.

    “Long-term customer satisfaction with individual annuity products is directly linked to customers’ understanding of a fairly complex financial product, which makes agent and advisor communication such an important part of the equation,” said Breanne Armstrong, director of insurance intelligence at JD Power. “It’s important to note, however, that true understanding goes deeper than just filling out forms and signing on the dotted line. In fact, 43% of individual annuity customers say their agent or advisor filled out the complete application for them and, not surprisingly, those people have lower overall satisfaction scores. Advisors and agents need to educate their customers and annuity customers need to make sure they understand the details of what they are getting.”

    Annuity providers typically offer a variety of resources to help educate customers on a product. Agents and advisors can encourage engagement with these tools during the onboarding process, even if the agent or advisor completes the application for the customer. Understanding of the annuity contract and costs and fees is significantly higher when the agent or advisor provides the customer with information on navigating the provider’s website and/or mobile app or directs the customer to available educational videos about the annuity during onboarding.

    Study Ranking

    USAA ranks highest among individual annuity providers with a score of 780. Pacific Life (708) ranks second and New York Life (688) ranks third.

    The U.S. Individual Annuity Study was redesigned for 2024. Scores are not comparable year over year with previous studies. The study measures the experiences of customers of the largest individual annuity companies in the United States across eight core dimensions (in order of importance): trust, value for price, ability to get service, ease of doing business, people, product offerings, digital channels, and problem resolution. The 2024 study is based on responses from 3,914 individual annuity customers and was fielded from April through July 2024.

    For more information about the U.S. Individual Annuity Study, visit https://www.jdpower.com/business/insurance/us-annuity-study.

    About JD Power
    JD Power     is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected]

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

    1JD Power measures the financial health of any consumer as a metric combining their spending/savings ratio, creditworthiness, and safety net items like insurance coverage.

     

  • 2024 U.S. Individual Life Insurance Study

    Life Insurers Miss the Mark on Clarity of Information and Personalization—Particularly Among Younger Customers, JD Power Finds

    2024-10-08

    jillian.breska

    TROY, Mich.: 10 Oct. 2024 — The life insurance industry is at an inflection point. Experiencing persistently slow growth and facing generational shift that is increasingly reliant on converting Millennial[1] and Gen Z customers, the industry is working hard to improve customer communications and build trust with new customer segments. According to the JD Power 2024 U.S. Individual Life Insurance Study,SM released today, insurers still have a lot of work to do, with the majority of customers indicating their insurer makes things unnecessarily complicated—a problem that is particularly acute among the youngest generation of customers.

    “Life insurers are facing new communication challenges as they court younger consumers,” said Breanne Armstrong, director of insurance intelligence at JD Power. “Currently, only 29% of life insurance customers ‘strongly agree’ that their insurer makes complex policies simpler, and Gen Z has the lowest incidence of saying their agent or advisor explains things in terms they can easily understand. The old model of text-heavy binders and jargon-filled informational packets will no longer cut it. Younger customers are looking for simpler guides, diagrams and easy-to-understand definitions when evaluating policies.”

    Following are some key findings of the 2024 studies:

    • Complexity keeps many customers from fully understanding their policies: Just 29% of life insurance customers say they “strongly agree” their insurer makes complex policies simpler and just 61% say their agent or advisor explains things in terms they can understand. Among members of Gen Z, that number falls to 57%. Overall, 64% of life insurance customers say they fully understand their policies.
    • Rethinking the life insurance statement: When asked what insurers could do to make life insurance statements easier to understand, most customers say: “reduce complexity/make statements easier to read.” Among younger customers in the Gen Z and Millennial segments, customers are looking for a guide or diagram on how to read the statement or links to educational videos and materials that explain how to read it.
    • Disconnect between current policy and future needs: Fewer than three-fourths (72%) of life insurance customers say their policy completely meets their future needs. Insurers can increase this rate dramatically by tailoring communications to specific customer needs, delivering the right frequency of communication and ensuring that the policy is completely understood.

    Study Rankings

    State Farm ranks highest among individual life insurance providers for a fifth consecutive year, with a score of 699. Guardian Life (685) ranks second and MassMutual (673) ranks third.

    The U.S. Individual Life Insurance Study was redesigned for 2024. Scores are not comparable year over year with previous studies. The study measures the experiences of customers of the largest individual life insurance companies in the United States across eight core dimensions (in order of importance): trust; value for price; ease of doing business; people; product offerings; ability to get service; problem resolution; and digital channels. The 2024 study is based on responses from 4,731 individual life insurance customers and was fielded from April through July 2024.

    For more information about the U.S. Individual Life Insurance Study, visit https://www.jdpower.com/business/healthcare/us-individual-life-insurance-study.

    About JD Power
    JD Power     is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected]

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

    1JD Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2006). Millennials (1982-1994) are a subset of Gen Y

     

  • 2024 U.S. Independent Agent Satisfaction Study

    Tighter Underwriting Standards Strain Independent Agents’ Relationships with Insurers, JD Power Finds

    2024-09-30

    jillian.breska

    TROY, Mich.: 1 Oct. 2024 — Independent insurance agents have been on the front lines of the most challenging markets in history, often serving as the intermediary between anxious clients and steadily rising rates or dramatic market exits on the part of insurers. According to the JD Power 2024 U.S. Independent Agent Satisfaction Study,SM released today, overall agent satisfaction with insurers of both personal lines and commercial lines has held strong, with commercial lines satisfaction reaching an all-time high. Areas in which some insurers are succeeding in helping independent agents navigate this challenging market are improved quoting platforms, agent training and incentives.

    The study was developed in conjunction with the Independent Insurance Agents & Brokers of America (IIABA). It evaluates the evolving role of independent agents in property and casualty (P&C) insurance distribution, general business outlook, management strategy and overall satisfaction with personal lines and commercial lines insurers in the United States.

    “Carriers that recognize the challenges independent agents are facing—and help them navigate those obstacles through a combination of education, easy access to quoting tools and incentives—are managing to earn agent loyalty and satisfaction despite the tough market,” said Stephen Crewdson, senior director of insurance business intelligence at JD Power. “Agents’ jobs have gotten harder, and a larger portion of agents are proactively shopping ahead for clients. Insurers that want to keep earning agents’ business are finding ways to partner with them every step of the way.”

    Following are key findings of the 2024 study:

    • Commercial lines agent satisfaction surpasses previous all-time high: Overall satisfaction among commercial lines agents is 781 (on a 1,000-point scale), up 19 points from 2023, while overall satisfaction among personal lines agents is 774, flat from a year ago. This is the first time agent satisfaction with commercial lines has surpassed that of personal lines.
    • Agents’ jobs keep getting harder: More stringent underwriting standards and a reduction in the number of clients who qualify for a policy have made it more difficult for independent agents to work with insurers. Across both commercial and personal lines, agents cite higher effort to work with insurers and reduced flexibility in the onboarding process.
    • Agents actively shopping on behalf of their clients: Most independent agents in commercial (54%) and personal (62%) lines say they are proactively shopping ahead for clients more now than they were two years ago, typically in search of lower rates and better product coverage.
    • Offsetting the challenges: Carriers that have been able to maintain the strongest relationships with independent agents have done so by improving their quoting platforms to make it easier to initiate new quotes; increasing communication with agents, both during the claims process and through educational and career development initiatives; and through the use of incentives such as cash rewards, trips and prizes.

    Study Rankings

    Erie Insurance ranks highest among insurers for personal lines, with a score of 862. Auto-Owners Insurance (845) ranks second and The Hanover (800) ranks third.

    Auto-Owners Insurance ranks highest among insurers of commercial lines for a fourth consecutive year, with a score of 844. The Hartford (815) ranks second and Zurich (801) ranks third.

    The U.S. Independent Agent Satisfaction Study measures P&C insurance independent agent satisfaction with insurers based on six factors (in alphabetical order): claims process; commission; product offerings and risk appetite; quoting; servicing policies; support and communication. The study is based on responses of 4,918 evaluations of personal and commercial lines insurers with which agents had placed policies during the prior 12 months. It was fielded from May through August 2024.

    For more information about the U.S. Independent Agent Satisfaction Study, visit https://www.jdpower.com/business/insurance/independent-agent-satisfaction-study.

    About JD Power
    JD Power     is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected]

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

     

  • 2024 U.S. Home Insurance Study

    Rampant Home Insurance Increases Strain Customer Satisfaction—and Drive Policy Shopping, JD Power Finds

    2024-09-16

    jillian.breska

    TROY, Mich.: 17 Sept. 2024 — Homeowners and renters insurance costs have now exceeded both the rate of inflation1 and the average rate increases experienced by auto insurance customers during the past year. According to the JD Power 2024 U.S. Home Insurance Study,SM released today, that nationwide surge in rates has driven a sharp increase in the percentage of customers shopping for new policies because their rates are too high.

    “’The average shopping rate among home insurance customers has climbed to a record high of 6.8% through the second quarter of 2024, up from 5.9% two years ago,” said Breanne Armstrong, director of insurance intelligence at JD Power. “Many shoppers have ended up staying put because there are so few alternatives available, but carriers need to recognize that steady rate increases put policy retention at risk and has a negative effect on customer satisfaction.”

    Following are some key findings of the 2024 study:

    • Rising prices drive increased shopping, decreased satisfaction: Among home insurance customers who receive an insurer-initiated rate increase, 37% are likely to shop for a new policy. The top reason given among those actively shopping new home insurance carriers is high rates. Overall satisfaction among customers who receive an insurer-initiated rate increase is 594 (on a 1,000-point scale), which is 92 points lower than among those who did not receive an insurer-initiate rate increase.
    • Shopping does not always result in switching: While a record 6.8% of all home insurance customers are actively shopping for new polices, just 2.2% of homeowners switched policies as a result, down from 2.5% two years ago.
    • Bundling declines as intent to unbundle increases: Bundling home and auto policies has declined significantly in 2024 compared with 2023, but there is growing intent to switch auto insurance without switching home insurance. Specifically, 21% of customers say they “definitely will” also switch their home insurance if they switch their auto insurance, which is down from 24% a year ago.
    • Effective communication can mitigate negative effects: The likelihood that home insurance customers will shop for a new policy following an insurer-initiated rate increase is severely mitigated by clear communication from their insurer. Among customers who receive an insurer-initiated rate increase, those who completely understand the reason for the increase are 14 percentage points less likely to shop for a new policy than those who do not understand the reason for the rate increase. Customers who completely understand the reason for the rate increase are also 21 percentage points more likely to strongly agree that their insurer puts the interests of its customers first.

    Study Rankings

    Chubb ranks highest in the homeowners insurance segment, with a score of 688. AIG (680) ranks second and Amica (679) ranks third.

    Erie Insurance ranks highest in the renters insurance segment for a second consecutive year, with a score of 713. Amica (695) ranks second and Lemonade (682) ranks third.

    The U.S. Home Insurance Study was redesigned for 2024. The study examines overall customer satisfaction with two distinct personal insurance product lines: homeowners and renters. Satisfaction in both segments is measured across seven core dimensions: trust; price for coverage; people; digital channels; problem resolution; product/coverage offering; and ease of doing business. The study is based on responses from 14,122 homeowners and renters via online interviews conducted from November 2023 through July 2024.

    For more information about the U.S. Home Insurance Study, visit https://www.jdpower.com/business/insurance/us-home-insurance-study.

    About JD Power
    JD Power     is a global leader in consumer insights, advisory services, and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 55 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.

    JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power auto-shopping tool can be found at JDPower.com.

    Media Relations Contacts
    Geno Effler, JD Power; West Coast; 714-621-6224; [email protected]
    John Roderick; East Coast; 631-584-2200; [email protected]

    About JD Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info

    1Bureau of Labor Statistics, Federal Reserve Economic Data, and JD Power analysis