Category: InsuranceUnited States

P&C Insurers Up Their Digital Games to Attract Rising Tide of Shoppers, but Miss on Account Servicing, JD Power Finds

2023-05-19

jillian.breska

TROY, Mich.: 23 May 2023 — Historic rate increases in the property and casualty (P&C) insurance industry have pushed a record-high¹volume of shoppers into the marketplace to seek new quotes and switch carriers. According to the JD Power 2023 U.S. Insurance Digital Experience Study,^SM released today, insurers have been doing a good job addressing those shoppers’ needs via the digital channel. When it comes to servicing existing customers on digital, however, overall satisfaction declines this year.

“The industry is seeing historical levels of customer churn right now, which puts a spotlight on the critical role insurer digital channels play in not just attracting new customers, but also onboarding them, and in retaining existing customers,” said Stephen Crewdson, senior director, insurance business intelligence at JD Power. “When it comes to shopping, insurers are starting to get the formula right, but they are still lagging far behind the best-in-class offerings in other industries like banking and airlines when it comes to servicing existing customers. That needs to become a focal point if insurers really want to build lifetime customer value.”

The U.S. Insurance Digital Experience Study evaluates the digital consumer experiences of both P&C insurance shoppers seeking quotes and existing customers conducting typical policy-servicing activities. It examines the functional aspects of desktop, mobile web and mobile apps based on four factors: ease of navigation; speed; visual appeal; and information/content. 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.

“The last thing most insurance customers want to do is have to call their carrier for help with basic account servicing questions and actions,” said Michael Ellison, president of Corporate Insight. “Increasingly, the usability and accessibility of a carrier’s digital solutions plays a big role in both attracting new customers and retaining existing ones.”

Following are key findings of the 2023 study:

• Improvements in shopping experience, but still long way to go on digital: Overall customer satisfaction with the P&C insurer digital shopping experience is just 521 (on a 1,000-point scale), up 22 points from a year ago. Relative to customer satisfaction scores with digital shopping tools in other industries, such as banking and airlines, the insurance industry still has a long way to go.
• Digital service satisfaction declines: Overall customer satisfaction with the digital service experience is 702, which is down 3 points from 2022. Customers’ inability to find the information they need is the biggest single drag on service experience satisfaction. Satisfaction scores are lowest (698) when customers cannot find information on an insurer’s website or app and end up having to call the insurer, which happens 42% of the time.
• Wide variation in app performance: In account servicing, the study finds significant gaps in mobile app performance. The average satisfaction score among the top-performing 25% of customers using a mobile app is 872—substantially higher than any other channel. However, satisfaction among the bottom 25% of customers using a mobile app declines 305 points to 567.
• Traditional carriers edge out InsurTechs on digital service and shopping: Overall customer satisfaction with digital account servicing and shopping is slightly higher among traditional insurers when compared to digital native InsurTech brands. While InsurTechs outperform on the research policy information metric, traditional carriers are performing as well or better on all other key factors. Traditional insurers perform particularly well on ability to make digital payments, ability to locate contact information and ability to make profile updates.

Study Rankings

Amica ranks highest in the service segment with a score of 735. GEICO (731) ranks second and Progressive (722) ranks third.

American Family ranks highest in the shopping segment with a score of 549. Farmers (547) ranks second and Automobile Club Group (AAA) (543) ranks third.

The 2023 U.S. Insurance Digital Experience Study is based on 11,146 evaluations and was fielded in January-March 2023.

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 50 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 (CI) 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

¹JD Power Quarterly Shopping LIST Report https://discover.jdpa.com/hubfs/Files/Industry%20Campaigns/Insurance/2022USINSLISTQ4Report1242023.pdf

 

Auto Insurance Shopping and Switch Rates Reach New Highs as Premiums Surge, JD Power Finds

2023-04-25

jillian.breska

TROY, Mich.: 27 April 2023 — The nation’s auto insurers are locked in a vicious cycle of inflation, rising premiums and steadily increasing customer defection rates. The result, according to the JD Power 2023 U.S. Insurance Shopping Study,^SM released today, is a sharper focus on saving money as large numbers of auto insurance customers shop for new policies and switch to new carriers, largely based on price.
“Auto insurance customers are starting to shop for insurance like they shop for gas,” said Stephen Crewdson, senior director, insurance business intelligence at JD Power. “They are taking a much more active stance in seeking out plans that fit their needs and their budgets, which could have a serious long-term effect on carriers that have been working for years to build lifetime value through bundling and other initiatives. In the near term, this shopping trend manifests itself in increased customer interest in usage-based insurance (UBI) plans and some reshuffling of market share among the top carriers.”

Following are some key findings of the 2023 study:

• Auto insurance shopping increases while customer satisfaction stagnates: Average overall satisfaction among auto insurance shoppers is 861 (on a 1,000-point scale), which is flat from a year ago, even though shopping and switching rates have increased in the same period. The 30-day average shopping rate reached 13.1% in March 2023, the highest rate since June 2021 and well above the 2021 average of 11.4%. The 30-day average switch rate hit 4.1% in March 2023, which compares to an average of 3.4% for all of 2021.
• Price hikes spur new-policy shopping rates:  Auto insurance costs rose 14.5% in February 2023, more than twice the rate of inflation (6%), making auto insurance account for a steadily increasing share of consumer discretionary spending. Accordingly, among those shopping for reasons of price, 44% say they are price checking and 42% say they are being spurred by a rate increase. Similarly, 41% of those shopping because of a rate increase say that their rate increased 20% or more.
• UBI starts to go mainstream: UBI programs, which use telematics software to monitor a customer’s driving style and assign rates based on safety and mileage metrics, are now offered to 22% of insurance shoppers and are purchased 18% of the time. Those numbers are up from a 16% offer rate and a 12% purchase rate in 2020. When carriers offer a UBI option, customer satisfaction increases 6 points.
• Progressive gains market share as GEICO slows: GEICO raised its rates significantly above industry average throughout much of the second half of 2022 while Progressive raised rates in the first quarter of 2022 and then registered lower-than-average increases during the second half of the year. During the same period, Progressive posted a notable gain in market share, becoming the second-largest auto insurer in the United States, ahead of GEICO and behind State Farm.

Study Rankings

State Farm ranks highest among large auto insurers in providing a satisfying purchase experience for a third consecutive year, with a score of 877. Liberty Mutual (865) ranks second and Nationwide (861) ranks third. The segment average is 861.

The Hartford ranks highest among midsize auto insurers for a second consecutive year, with a score of 887. Erie Insurance (878) ranks second and Automobile Club of Southern California (AAA) (870) ranks third. The segment average is 863.

Large insurers have direct premiums written of $4.5 billion or more in personal lines auto, while midsize insurers have direct premiums written of $1 billion-$4.499 billion in personal lines auto.

Now in its 17^th year, the U.S. Insurance Shopping Study captures advanced insight into each stage of the shopping funnel and is based on responses from 10,845 insurance customers who requested an auto insurance price quote from at least one competitive insurer in the previous nine months. The study was fielded from March 2022 through January 2023.

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 50 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

 

Increasing Severity and Longer Repair Times for Property Claims Test Limits of Insurers’ Digital Tools, JD Power Finds

2023-02-23

jillian.breska

TROY, Mich.: 23 Feb. 2023 —A combination of severe catastrophic losses, supply chain-related delays and inflation conspired to make 2022 the worst year financially for homeowners insurance providers in the past decade. According to the JD Power 2023 U.S. Property Claims Satisfaction Study,^SM released today, the combination of more severe events, rising costs and longer cycle times has strained customer satisfaction and tested the limits of the digital tools that were designed to help the industry respond more quickly and efficiently.

“The P&C industry playbook for the past few years has been to invest heavily in digital solutions that streamline the claims process for customers, while reducing costs and improving efficiency for carriers,” said Mark Garrett, director, insurance intelligence at JD Power. “However, the longer cycle times have made it increasingly difficult to keep customers informed via digital channels and limit their need to contact their insurer with questions. JD Power has seen a sharp rise in the number of customers contacting their insurer for information, particularly tied to these longer-tailed claims. Satisfaction among customers who need to primarily call their insurer for updates includes some of the lowest scores compared with other update methods. Also noted this year is that the increase in severity has driven down digital claim reporting as lower-severity claims are more likely to be reported digitally. In fact, this is the first year JD Power has ever seen declining use of digital claims reporting, digital used as a primary channel for status updates and for submitting photos that were used for the estimate. This is a worrying sign for the industry, as digital tools are apparently not meeting customer needs.”

Following are some key findings of the 2023 study:

• Repairs taking longer than previously to complete: The average claims cycle time—the amount of time from reporting the claim to finished repairs—is now 22 days, which is more than four days longer than a year ago and a week longer than what was reported in the 2021 study. The delays are even longer for those with multiple payments, as customers say they received final payment at 31.5 days on average, which is nearly a week longer than a year ago. The increases have been driven by a combination of severity of damage and continued delays getting the materials needed to complete repairs.
• Insurance company results are mixed: While the overall industry improves 3 points (on a 1,000-point scale), eight ranked insurers show declines in satisfaction while nine improve year over year. Notably, the insurers that have the largest increases in satisfaction were able to limit their customers needing to contact them for information, a key difference between brands that have improved in score and those that have declined. Companies that have improved the most also were able to keep the interactions with their customers streamlined with only one or two representatives involved at a much higher rate.
• Proactive management of customer expectations necessary: While average repair cycle times of three weeks or more create a significant drag on customer satisfaction, there are steps insurers can take to improve customer satisfaction for longer, more complex repairs. Offering options for receiving status updates; providing accurate claim length expectations; limiting customer-initiated  requests for information; and making representatives immediately available are among the top drivers of customer satisfaction in a protracted repair cycle.
• Forcing digital on customers who prefer a phone call strains customer satisfaction: Among customers who have indicated a preference for interacting with their insurer via phone/in-person channels, satisfaction is notably lower when they primarily must use digital channels for key touch points in the claim. Nearly 20% say they either received only a digital copy of their repair estimate or primarily received status updates through digital channels. Not surprisingly, overall satisfaction is significantly lower among these customers, approximately 60-70 points lower than among customers who receive a phone call for either of these interactions.

Study Ranking

Erie Insurance ranks highest in property insurance claims experience with a score of 912. Amica (903) ranks second and Nationwide (884) ranks third.

The U.S. Property Claims Satisfaction Study measures satisfaction with the property claims experience among insurance customers who have filed a claim for property damages by examining five factors (listed in order of importance): settlement; claim servicing; FNOL; estimation process; and repair process. The study is based on responses from 5,343 homeowner insurance customers who filed a claim within the previous nine months. The study was fielded from December 2021 through December 2022.

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 50 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

 

Life Insurance Purchased on Perceived Value, Not Cost, JD Power Finds

2022-11-14

TROY, Mich.: 15 Nov. 2022 — That adage about a life insurance policy being sold and not bought needs to be updated for the post-pandemic era. In fact, customers are initiating the purchase of life insurance, but the key criteria for choosing which one to buy often involves much more than cost. According to the JD Power 2022 U.S. Life Insurance New Business Study,^SM released today, a customer’s perceived value and the view that insurers are making recommendations in the customer’s best interest are the key factors influencing life insurance shoppers to choose one brand over another.

“It is noteworthy during this inflationary period when price has become the most important factor in so many consumer purchase decisions that life insurance customers are more concerned with their future and the insurer’s ability to make good on their promises than they are about price,” said Robert M. Lajdziak, director, global insurance intelligence at JD Power. “This puts the onus on carriers to differentiate, clearly convey their unique value propositions and make sure prospective customers fully understand all aspects of their policy offerings.”

Following are some key findings of the 2022 study:

• Quote and buy conversion rates increase: After industry-wide quote rates rose a year ago for the first time in 30 years, quote rates have increased another 9 percentage points this year, while buy rates have increased 13 percentage points as increasing numbers of consumers are seeking life insurance policies.
• Concern for future spurs life insurance shopping activity: The biggest single factor prompting consumers to start researching life insurance policies is concern for the future, cited by 57% of life insurance customers as the primary catalyst to seeking out a policy. That percentage is up from 55% in 2021.
• Overall satisfaction holds steady: Overall satisfaction with individual life insurance providers remains largely steady at 774 (on a 1,000-point scale), down 2 points year over year. Satisfaction with the shopping process has also remained stable with identical scores year over year despite speed of executing a policy increasing in new buyer satisfaction this year.

The 2022 U.S. Life Insurance New Business Study measures the experiences of shoppers of the largest life insurance companies in the United States. The study measures overall customer satisfaction based on the application process, and surveyed shoppers are able to convey their experiences in the application and quote processes with up to five brands—although only one brand is required.

The study is based on responses from 6,993 consumers who shopped for individual life insurance in the past 12 months and was fielded in July-August 2022.

For more information about the U.S. Life Insurance New Business Study, visit https://www.jdpower.com/business/insurance/us-life-insurance-new-business-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 50 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

 

Insurers Struggle to Manage Expectations in Auto Claims Process as Repair Times Increase, JD Power Finds

2022-10-25

TROY, Mich.: 27 Oct. 2022 — The times have not been kind to the auto insurance industry. The volume of vehicle collisions is returning to pre-pandemic levels and, when combined with all-time-high repair costs, historic backlogs in repair shops and limited replacement parts availability, it is costlier and more time-consuming than ever to get customers’ vehicles back on the road after a collision. Today, the JD Power 2022 U.S. Auto Claims Satisfaction Study^SM adds another dour fact to the mix: customer satisfaction has declined 7 points (on a 1,000-point scale) from 2021 as customers start to lose patience with the claims process.

“Insurers are in a tight spot with their own profitability strained and a host of external factors causing their customers to grow increasingly disillusioned with the entire claims experience,” said Mark Garrett, director of global insurance intelligence at JD Power. “The best way forward is for insurers to start focusing on carefully managing customers’ expectations and fine-tuning their digital engagement strategies to shepherd their customers through the process. There is one bright spot in the study: insurers that focused on managing timing expectations, were quickly available and responsive to customers and that provided multiple digital options for status updates were able to outperform the industry—with some even improving year over year.”

Following are key findings of the 2022 study:

• Historically slow repair process drags on customer satisfaction: Overall satisfaction with the auto insurance claims process this year falls 7 points to 873. While satisfaction is down across nearly all factors in the study, satisfaction with the repair process registers a 9-point year-over-year decline. This year marks the first time a majority of customers cited supply chain issues such as waiting for parts on order and repair shop backlog as reasons for delays in getting their vehicle back on the road. The average repair cycle time is nearly 17 days, compared with a pre-pandemic average of about 12 days.
• Expectation management becomes key to customer satisfaction: The average overall satisfaction score among customers experiencing a repair cycle time greater than three weeks is 837. That score jumps 71 points to 908 when customers are provided with an accurate time estimate beforehand. Being empathetic throughout the process is key, especially for the longer-tailed claims that can create more effort for customers who have questions, need updates and are trying to determine next steps.
• Claims servicing is not one size fits all: Rising repair costs are challenging insurers’ profitability, so pressure is mounting to better manage expenses. This puts the focus on digital channels as a critical tool for efficiently managing customer relationships, but not all customers want to use such channels. In fact, 34% of customers say they have a stronger preference for working with people than using digital contact. These customers also have a notably worse claims experience, as satisfaction is 31 points lower than among those who are equally comfortable with both people and digital as contact channels.
• Getting digital formula just right is critical, but not easy: Not all digital experiences are created equal. When digital is used for delivering status updates, overall satisfaction rises 56 points, with those using text messaging having the highest levels of satisfaction. However, when digital is used to report first notice of loss (FNOL) via the internet or mobile app, overall satisfaction falls 4 points.
• Right hand, meet left hand: A common complaint about the auto insurance claims process is the need to repeatedly provide the same information to different people at various points in the process. Overall satisfaction scores are lowest (840) when customers interact with three or more representatives during the claims process—a decline of 13 points from a year ago. Scores are highest (912)—and have held steady year over year—when the insurer uses straight-through-processing technology to automatically approve and route the claim.

Study Ranking

Amica Mutual ranks highest in overall customer satisfaction with a score of 903. NJM Insurance Co. (896) ranks second and Erie Insurance (893) ranks third.

The redesigned 2022 U.S. Auto Claims Satisfaction Study is based on responses from 8,239 auto insurance customers who settled a claim within the past six months prior to participating in the survey. 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 November 2021 through September 2022.

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 50 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

 

Both Life Insurance and Annuity Customer Satisfaction Decline as Pandemic Fears Wane, JD Power Finds

2022-10-13

jillian.breska

TROY, Mich.: 13 Oct. 2022 — Individual life insurance and annuity products—with the longest term lengths of long-term investment and insurance products—have created a customer engagement problem. According to the JD Power 2022 U.S. Individual Life Insurance Study^SM and the JD Power 2022 U.S. Individual Annuity Study,^SM both released today, customer satisfaction with these products starts declining relatively soon after they are purchased, resulting not only in low likelihood of consideration to purchase other insurance and financial services products but also a general lack of understanding of the products these customers already own.

While the industry declines, it is notable that award winners in both studies, State Farm and American Equity Investment Life Insurance, buck the trend and exhibit some of the largest year-over-year increases in customer satisfaction.

“After a brief surge during the height of the pandemic, overall customer satisfaction with individual life insurance and annuity plans have now reverted to their previous long-term trends in which customer satisfaction declines as tenure with the product increases,” said Robert M. Lajdziak, director, global insurance intelligence at JD Power. “It’s clear from our data that insurers are struggling to maintain regular contact with customers and to reinforce a unique value proposition during the length of the relationship. That not only limits potential future sales opportunities, but also exposes incumbents to competitive threat from insurtech start-ups that are leveraging digital to deliver a more multi-channel approach to client engagement that is resonating with customers.”

Following are some key findings of the 2022 study:

• Customer satisfaction sinks: After the largest one-year increase in customer satisfaction in 2021, overall satisfaction with individual life insurance decreases two points to 774 (on a 1,000-point scale) this year, led by declines in interaction with agents/advisors; call center; and website. Likewise, customer satisfaction with individual annuities decreases 13 points to 789, led by steep declines in price satisfaction; product offerings; and communications.
• Life insurance’s long tail of waning satisfaction: The longer a customer lives with a life insurance policy, the more their overall satisfaction deteriorates. The overall satisfaction score for customers with a tenure of five years or less is 821. That falls to 785 after six years, to 759 after 11 years and to 756 after 20 years. Longer-tenured customers also are significantly less likely to experience their agent or advisor meeting the key performance indicator of making recommendations in the customer’s best interests.
• Digital now preferred means of interaction but agent/advisor contact still matters: More than half (51%) of customers have used at least one digital channel in the past three years to interact with their insurer. These customers have higher satisfaction levels than those customers who have not used a digital channel.
• Annuity providers under-utilizing digital: Despite the high incidence of digital customer interaction, annuity providers are increasingly sending communications to customer via mail. Although mail is the most common form of client communication—received by 74% of annuity customers this year—it is the channel with the lowest level of overall satisfaction. Mobile apps, by contrast, are used just 8% of the time, but drive the highest levels of customer satisfaction.
• Lack of brand differentiation opens door for insurtechs: More than half (55%) of life insurance customers rate the brand reputation of their own insurer equally with other insurers in the marketplace. When it comes to insurtech brands, however, customers are more likely to view these companies as unique, innovative and affordable.

Study Rankings

State Farm ranks highest among individual life insurance providers for a third consecutive year, with a score of 839. Globe Life (812) ranks second and Mutual of Omaha (801) ranks third.

American Equity Investment Life Insurance ranks highest among individual annuity providers with a score of 838. Fidelity & Guarantee Life (829) ranks second and Nationwide (822) ranks third.

The 2022 U.S. Individual Life Insurance Study measures the experiences of customers of the largest individual life insurance companies in the United States. The study measures overall customer satisfaction based on performance in five factors (in alphabetical order): communication; interaction; price; product offerings; and statements. The 2022 study is based on responses from 5,583 individual life insurance customers and was fielded from June through August 2022.

The 2022 U.S. Individual Annuity Study measures the experiences of customers of the largest annuity companies in the United States. Overall customer satisfaction is based on performance in five factors (in alphabetical order): communication; interaction; price; product offerings; and statements. The study is based on responses from 3,152 individual annuity customers and was fielded from June through August 2022.

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

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 50 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

 

Independent Insurance Agents More Satisfied Than Ever with Insurers, JD Power Finds

2022-10-03

jillian.breska

TROY, Mich.: 4 Oct. 2022 — Despite near constant disruption from the twin forces of digital transformation and economic uncertainty, independent insurance agents have never been more satisfied with their carrier partners. According to the JD Power 2022 U.S. Independent Agent Satisfaction Study, ^SM released today, overall agent satisfaction with insurers of both personal lines and commercial lines has reached an all-time high. Commercial lines satisfaction achieves a significant 16-point increase (on a 1,000-point scale) from 2021.

The study, which was previously known as the JD Power U.S. Independent Agent Performance and Satisfaction Study,^SM was developed in alliance with the Independent Insurance Agents & Brokers of America (IIABA). It evaluates the evolving role of independent agents in P&C insurance distribution, general business outlook, management strategy and overall satisfaction with personal lines and commercial lines insurers in the United States.

“The past two years have been tough for insurance agents, particularly in the commercial lines space where many businesses have been struggling,” said Stephen Crewdson, senior director, insurance business intelligence at JD Power. “What we’re seeing now in the data is the normalization of the marketplace and a return to more frequent and more positive interactions between agents and carriers. Importantly, we’re also seeing trends that suggest the changes made since the pandemic—such as increased digital engagement and updates to legacy systems with new platforms and portals—are having a positive effect on the agent/carrier relationship.”

Following are key findings of the 2022 study:

• Agent satisfaction reaches all-time high: Overall satisfaction among personal lines agents is 757, up 7 points from 2021, while overall satisfaction among commercial lines agents is 756, up a significant 16 points from a year ago. The largest gains in satisfaction with commercial lines are in product offerings and risk appetite; support and communication; quoting; and commission.
• Engagement increases, led by digital: The use of digital channels for interaction with carriers increases 22 percentage points this year, while in-person interaction increases 8 percentage points. Overall satisfaction is highest when agents interact via digital channels.
• Seamless portal integration drives higher satisfaction scores: Digital carrier platforms and web portals, which have been widely updated by the industry during the past few years, can have a positive effect on agent satisfaction—but only if they are fully integrated. Complete seamless integration between carrier portals and agency management systems drives a substantial boost in agent satisfaction, but incomplete or inconsistent integration has a negative effect on satisfaction. Just 51% of personal lines agents and 46% of commercial lines agents say they have seamless integration with carrier portals.
• Keeping the relationship fresh: Agents with the highest levels of satisfaction fall into the relationship tenure sweet spot of 2-10 years. Agents who have been working with carriers for both shorter and longer periods of time are less satisfied overall, suggesting that carriers need to refine their approaches to newer as well as more seasoned agents.

Study Rankings

Erie Insurance ranks highest among insurers of personal lines, with a score of 838. Auto-Owners Insurance (817) ranks second and The Hanover (805) ranks third.

Auto-Owners Insurance ranks highest among insurers of commercial lines, with a score of 836. Cincinnati Insurance (812) ranks second and The Hartford (794) ranks third.

For the 2022 U.S. Independent Agent Satisfaction Study, P&C insurance independent agents were surveyed, which resulted in 4,670 evaluations of personal and commercial lines insurers with which agents had placed policies during the prior 12 months. The study was fielded from May through July 2022.

For more information about the U.S. Independent Agent Satisfaction Study, visit https://www.jdpower.com/sites/default/files/file/2022-03/2022_US_IndependentAgentStudyMS.pdf.

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 50 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

 

Bundle Fumble? Rising Auto Insurance Premiums are Killing Home Bundles, JD Power Finds

2022-09-19

jillian.breska

TROY, Mich.: 20 Sept. 2022 — The future of the home and auto insurance bundle, once a mainstay of property and casualty (P&C) insurance customer retention and lifetime value strategies, has come into question as legions of customers have started to break-up their polices. According to the JD Power 2022 U.S. Home Insurance Study,^SM released today, rapidly rising auto insurance premiums are largely to blame for potential defection among bundlers.

“Sky-high auto loss costs and resultant auto premium increases are creating ripple effects throughout the insurance industry and, as a result, one area that is being severely disrupted is the home and auto insurance bundle,” said Robert M. Lajdziak, director, global insurance intelligence at JD Power. “Homeowners, and particularly bundlers, have traditionally been less price-motivated than the typical monoline auto customer, but we are beginning to see cracks in that foundation. That puts the focus for insurers squarely on the overall brand experience their customers are receiving—across all lines—and on understanding how changes in one area, such as telematics adoption in an auto policy, can affect the entire customer journey.”

Following are some key findings of the 2022 study:

• Overall satisfaction declines, led by home and auto bundlers: Overall homeowner satisfaction decreases 6 points (on a 1,000-point scale) and renter satisfaction decreases 7 points this year. The declines among homeowners are driven by a sharp drop in price satisfaction, which is most pronounced among auto bundlers, where customers experience a 10-point decline in price satisfaction, while non-bundlers only see a 1-point decline.
• Retention rates significantly lower among non-bundlers: The average homeowners insurance customer retention rate among homeowners who bundle their auto and home policies is 95%. Among non-bundlers, that rate drops to 85%. Similarly, among renters, bundlers have a 95% retention rate and non-bundlers have an 82% retention rate.
• Auto premium increases put bundled home policies at risk: Nearly one-third (31%) of bundlers say they “definitely will” switch their home insurer if they switch their auto insurer after an insurer-initiated auto premium increase. Insurer-initiated auto premium increases also negatively affect home insurance intended retention and advocacy, regardless of bundling status.
• Insurtech awareness on the rise: Overall, nearly one-fourth (23%) of home insurance customers are aware of insurtech offerings from companies like Lemonade, Hippo, Kin, Openly, Jetty and Trove. Among homeowners not currently insured by Lemonade, but aware of the brand, 34% say they “definitely will” or “probably will” purchase from Lemonade if it is available in their state.

Study Rankings

Amica Mutual ranks highest in the homeowners insurance segment for a second consecutive year, with a score of 849. American Family (842) ranks second and The Hartford (839) ranks third.

Nationwide ranks highest in the renters insurance segment with a score of 859. Lemonade (853) ranks second and Automobile Club of Southern California (852) ranks third.

The U.S. Home Insurance Study examines overall customer satisfaction with two distinct personal insurance product lines: homeowners and renters. Satisfaction in the homeowners and renters insurance segments is measured by examining five factors: interaction; policy offerings; price; billing process and policy information; and claims. The study is based on responses from 11,630 homeowners and renters via online interviews conducted from May through July 2022.

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 50 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

 

Small Business Insurance Customer Satisfaction Bounces Back after Two Years of Pandemic-Related Declines, JD Power Finds

2022-08-23

jillian.breska

TROY, Mich.: 23 Aug. 2022 — A toxic combination of business disruption and economic uncertainty strained the relationship between small businesses and their commercial line insurers during the pandemic, causing customer satisfaction to decline beginning in 2020 for the first time in seven years. According to the JD Power 2022 U.S. Small Commercial Insurance Study,^SM released today, that trend has reversed, with overall small business customer satisfaction climbing 13 points (on a 1,000-point scale) to just 2 points lower than its pre-pandemic high.

“It’s noteworthy that we’re seeing increases in satisfaction across all factors—including price—at a time when 30% of small business customers have experienced an insurance premium increase,” said Stephen Crewdson, senior director of global insurance intelligence at JD Power. “That’s the highest proportion of customers experiencing price increases that we’ve seen in the past eight years. Insurers that notify their small business customers in advance of a price increase and proactively work with them to mitigate the financial effects of those premium increases are finding that it is possible to drive strong customer engagement and high levels of customer satisfaction even in a difficult economic environment.”

Following are some key findings of the 2022 study:

• Customer satisfaction improves following pandemic-era dip: Overall small business customer satisfaction with commercial insurers is 842, up 13 points from 2021. Customer satisfaction improves across all factors in the study and is led by interaction; billing and payment; and policy offerings. Customer satisfaction with commercial insurance climbed steadily from 2013 until the pandemic, reaching an all-time high of 844 in 2019.
• Smallest small businesses feel less satisfied: Although overall customer satisfaction improves across all categories of businesses evaluated in the study, the micro category—which consists of businesses with fewer than five employees—has a lower overall satisfaction score (826) than do medium-size (841) and larger (852) small businesses.
• Proactive communication about premium increases influences satisfaction: Customer satisfaction with the price of their small business insurance policies rises 3 points this year, despite 30% of small businesses experiencing a premium increase. The study finds that proactive communication plays a big role in that trend. When customers experience an increase—but are notified in advance, discuss ways to mitigate the effect of the increase and completely understand why their premiums increased—they are nearly as satisfied with price as customers who did not have an increase at all.

Study Ranking

State Farm ranks highest in overall customer satisfaction with a score of 856. Chubb (855) ranks second and Nationwide (854) ranks third.

The 2022 U.S. Small Commercial Insurance Study is based on responses from 2,254 small commercial insurance customers. The study, now in its 10th year, examines overall customer satisfaction among small commercial insurance customers with 50 or fewer employees. Overall satisfaction is comprised of five factors (in alphabetical order): billing and payment; claims; interaction; policy offerings; and price. The study was fielded from March through June 2022.

For more information about the JD Power U.S. Small Commercial Insurance Study, visit https://www.jdpower.com/business/insurance/us-small-commercial-insurance-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 50 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

 

Group Life Insurance Carriers Can Improve Policyholder Engagement and Education, JD Power Finds

2022-06-13

crescent.seward

TROY, Mich.: 14 June 2022 — After an unprecedented two years, consumers are thinking about their group life insurance coverage beyond what their employers may offer. Engagement and education fueled by solid communications is important to policyholders, according to the JD Power 2022 U.S. Group Life Insurance Study,^SM released today. In fact, group life insurance satisfaction is at least 21 points higher (on a 1,000-point scale) than individual life insurance satisfaction^[1] across all comparable factors, except interaction.

“One-on-one communication is a great opportunity for group life carriers to increase customer satisfaction,” said Robert Lajdziak, director of global Insurance intelligence at JD Power. “For instance, only 57% of policyholders completely understand their policy coverage, which boils down to lack of representative engagement and education.”

Study Ranking

Mutual of Omaha ranks highest with a score of 817. Lincoln Financial Group (815) ranks second and Principal Financial Group (807) ranks third.

The 2022 Group Life Insurance Study measures the experiences of customers of the largest life insurance providers in the United States. The study measures overall customer satisfaction based on performance in six factors (in alphabetical order): application and orientation; communication; interaction; price; product offerings; and statements. The study is based on responses from 2,170 group life insurance customers and was fielded in March-April 2022.

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 50 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

^[1] JD Power 2021 U.S. Individual Life Insurance Study