Category: Japan

Tire Performance on Icy Roads Improves Industry-Wide, But Tire Manufacturers Are Challenged to Improve Basic Tire Performance

1970-01-01

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TOKYO: 31 May 2012— Owner satisfaction with performance of winter tires on icy roads has improved industry-wide in Japan, surpassing satisfaction with basic performance (performance on dry or wet roads, durability/reliability, and appearance), according to the JD Power Asia Pacific 2012 Japan Winter Tire Customer Satisfaction Index Study^SM released today.

The study, now in its ninth year, measures customer satisfaction with winter tires by examining six key factors: tire performance in snow-covered road conditions (25%); performance in icy road conditions (22%); durability/reliability (17%); ride/quietness on dry or wet roads (14%); handling/traction on dry or wet roads (12%); and appearance (11%).

The study finds that customer satisfaction with winter tire performance on icy roads has improved during the past six years, surpassing satisfaction with performance on dry or wet roads, which has decreased during the same period. Customers express the lowest satisfaction with winter tires regarding the basic performance characteristics: poor fuel economy and ride, noise, and fast tire wear.

“The key area for tire companies to focus on improving customer satisfaction with winter tires is likely to shift, based on 2012 study results, to improvement in basic performance in areas other than winter road performance,” said Taku Kimoto, executive director of the automotive division at JD Power Asia Pacific, Tokyo.

In addition, the study finds that changes have occurred in customer purchase behaviors during the past six years. The percentage of customers who compare brands at the time of winter tire purchase has increased to 42 percent, an 8-percentage-point increase from the 2005 study.

“This indicates intensification of competition among brands,” said Kimoto. “This increased competition is due to the commoditization of winter tires and an increase in the number of customers who use the Internet to select tires.”

Satisfaction significantly affects winter tire brand repurchase intentions. The study finds that 25 percent of owners with overall satisfaction scores of 666 points or higher indicate that they “definitely will” repurchase the same brand the next time, while only 5 percent of those with lower satisfaction scores indicate the same.

“Further product differentiation is required for tire manufacturers to secure share in the maturing winter tire market. For this reason, it is necessary for manufacturers to return to improvement in basic tire performance based on the customer perspective,” said Kimoto.

Among the 10 brands ranked in the study, Michelin ranks highest in overall in customer satisfaction for a ninth consecutive year with a score of 644 points. Michelin performs particularly well across all factors. Bridgestone ranks second with a score of 614.

The 2012 Japan Winter Tire Customer Satisfaction Index Study is based on responses from 7,461 vehicle owners who purchased new winter tires for their personal passenger vehicle (including mini-cars) between May 2009 and February 2012 and who are still using these tires. The study was fielded in February 2012.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/

 

Although New-Vehicle Fuel Efficiency Improves in Japan, Frequency of Fuel Consumption Problems Increases

1970-01-01

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TOKYO: 30 August 2012 — While owners are reporting better fuel efficiency with their new vehicle, they are also experiencing a greater number of fuel efficiency-related problems than in 2011, according to the JD Power Asia Pacific 2012 Japan Initial Quality Study^SM (IQS).

The study, now in its second year, measures new-vehicle quality in the first two to nine months of ownership. The study captures problems experienced by owners in 227 problem areas that affect quality across nine categories: vehicle exterior; driving experience; features/controls/displays; audio/entertainment/navigation (AEN); seats; heating, ventilation and air conditioning (HVAC); vehicle interior; engine/transmission; and other problems. All problems are summarized as the number of reported problems per 100 vehicles (PP100), with lower scores indicating higher quality performance.

Overall initial vehicle quality in Japan improves by 7 percent from 2011 to 101 PP100. This is on a par with the industry average of 102 PP100 in the 2012 U.S. Initial Quality Study.

The study finds that at a time of rising consumer awareness regarding fuel economy, owners are reporting better fuel efficiency with their vehicle. As a result of automaker fuel efficiency improvement initiatives, the overall fuel consumption of new vehicles averages 15.8 km/liter, a 0.9 km/liter improvement from 2011.

However, although actual fuel efficiency has improved, the frequency of owners reporting problems with excessive fuel consumption increases by 15 percent in 2012 to 3.1 PP100, up from 2.7 PP100 in 2011.  Excessive fuel consumption is the second-most-frequently reported problem following front audio/entertainment/navigation system–controls difficult to use/poor location (3.4 PP100).

The largest increases in excessive fuel consumption problems are in the mini-car and compact segments.

“Although the advancements made in fuel economy for the industry overall are to be celebrated, in the compact segment, which includes hybrid models, owners’ high expectations for fuel efficiency may have exceeded the level of improvement,” said Atsushi Kawahashi, senior director of the automotive division at JD Power Asia Pacific. “For automakers, it’s important to understand that in addition to improving fuel efficiency, they must also make sure to communicate the realistic abilities of their vehicles in order to keep expectations for fuel efficiency to a reasonable level.”

The study also finds that the proportion of vehicles with a continuously variable transmission (CVT) has increased to 75 percent of market share in 2012 from 66 percent in 2011. In the mini-car segment, the proportion of vehicles with a CVT has increased to 79 percent in 2012 from 58 percent in 2011. The increase in CVTs also corresponds to an increase in reported problems. For example, owners of vehicles with CVTs experience 50 percent more problems related to the transmission hesitating or delaying between gears than do owners of vehicles with traditional transmissions.

“It appears that automakers’ use of CVTs as a fuel efficiency improvement technology is having an impact,” said Kawahashi. “At the same time, owners of vehicles with CVTs take a dim view of transmission hesitation. Therefore, it is necessary for automakers and suppliers to better assess customer expectations for transmission performance and work to reduce the incidence of problems associated with CVTs.”

Other key findings include:

• Although scores in most problem categories have improved year over year by 7 to 19 percent, the score for the AEN category has improved by only 1 percent and the score for the HVAC category rose 1 percent.

• While the score for defect/malfunction problems  has improved 14 percent from 2011, the score for design-related problems  has improved only 4 percent. Design-related problems account for 57 percent of the problems reported (101 PP100 in 2012), compared with 56 percent in 2011.

2012 Ranking Highlights

Lexus ranks highest in the study, averaging 66 PP100. Toyota ranks second with 92 PP100, followed by Honda with 95 PP100.

Among the 51 models ranked in the study, the Toyota AQUA, launched in December 2011, has the fewest reported problems at 55 PP100, which is 46 PP100 better than the industry average.

Rankings in the four vehicle segments that comprise the study are as follows:

• Mini-car segment: Suzuki Alto ranks highest for a second consecutive year. Suzuki MR Wagon ranks second and the Diahatsu Mira e:s ranks third.
• Compact segment: Toyota AQUA ranks highest, followed by the Toyota Ractis and Nissan Cube, respectively.
• Midsize segment: Lexus CT200h ranks highest, followed by the Toyota Corolla Axio/Fielder and Toyota Prius, respectively.
• Minivan segment: Honda Freed ranks highest, based on a 13 PP100 improvement from 2011. It is followed by the Toyota WISH and Toyota Voxy, respectively.

The 2012 Japan Initial Quality Study is based on responses from 10,758 purchasers of new vehicles in the first two to nine months of ownership. The study includes 16 automotive brands and 97 models and ranks models with sample sizes of 100 or more usable returns. The study was fielded in May 2012.

The Japan Initial Quality Study (IQS) is one of eight consumer-based benchmark studies conducted by JD Power Asia Pacific in Japan. Other 2012 studies conducted by JD Power Asia Pacific include:

• Japan Winter Tire Customer Satisfaction Index Study was released in late May 2012
• Japan Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in late August 2012
• Japan Customer Satisfaction Index (CSI) Study, which measures overall customer satisfaction with service performed at automotive dealer facilities (to be released in late September)
• Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to nine months of ownership (to be released in late September)
• Japan Original Equipment Tire Satisfaction Study (to be released in October)
• Japan Navigation Systems Customer Satisfaction Index Study, which measures customer satisfaction with original equipment and aftermarket navigation systems (to be released in October)
• Japan Replacement Tire Satisfaction Study (to be released in November)

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

 

Aftermarket Navigation System Manufacturers Face Challenging Market Conditions in Japan as Competition from Factory-Installed Systems Increase and Prices of In-Dash Systems Decline

1970-01-01

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TOKYO: 25 October 2012 — Aftermarket navigation system manufacturers are facing unprecedented adverse market conditions as the installation rate of factory-installed navigation systems on new vehicles continues to increase, demand for portable navigation systems declines and prices of in-dash aftermarket navigation systems fall, according to the JD Power Asia Pacific 2012 Japan Navigation Systems Customer Satisfaction Index Study^SM.

Now in its sixth year, the study measures customer satisfaction with in-dash vehicle navigation systems as well as portable navigation devices (PND). The study also measures customer satisfaction with aftermarket brand navigation systems as in-vehicle information systems, including music and video player functions and telematics services, as well as search and guidance functions. In the in-dash systems segment, four factors are examined (listed in order of importance): car life support  (39%); driving support  (35%); cost (16%); and service support  (10%). In the PND segment, four factors are examined (listed in order of importance): driving support (45%); car life support (26%); cost (23%); and service support (6%). Overall satisfaction scores are calculated based on customer evaluations of multiple subcategories of each of these factors and are based on a 1,000-point scale.

The study finds that as OEM navigation systems continue to become more prevalent in new vehicles demand for aftermarket systems has fallen. In 2012, fewer than one in five (17%) new vehicle purchasers had installed an aftermarket navigation system, down from 27 percent in 2011. Furthermore, the proportion of PNDs among aftermarket navigation systems has decreased to approximately 60 percent of 2010 levels.

Pricing for aftermarket systems has become a challenge in the industry as well. Approximately one-half of in-dash systems are the lower-priced memory systems, where market prices continue to fall, as compared with higher-priced hard-disk drive systems that can store more data but are also generally more expensive.

The study also finds that customer satisfaction scores for in-dash hard disk drive navigation systems, in-dash memory navigation systems, and PND alike have decreased from 2011. Intended loyalty rates are decreasing as well, most notably for in-dash memory navigation systems and PND.

“In an adverse market environment for aftermarket navigation systems, it is becoming increasingly difficult for products that can’t be differentiated from competing brands and OEM navigation systems to survive,” said Taku Kimoto, executive director of the automotive division at JD Power Asia Pacific. “However, distinctive navigation systems equipped with a full range of specific functions and navigation systems with advanced offerings that can’t be easily imitated in OEM navigation systems are experiencing success. For example, purchasers of high-priced navigation systems indicate strong interest in natural language voice recognition, and this is a function likely to attract attention.”

Alpine Big X is the first product in the Alpine brand to rank highest in the in-dash segment, achieving a score of 596 points. Big X performs particularly well in service support and driving support. Alpine Big X receives particularly high ratings from customers for its large screen size, mainly among minivan owners with small children. Alpine Big X also has a high rate of owners who purchase the navigation system together with a rear-seat entertainment system or external camera. Intended loyalty rates for the brand are also high.

Pioneer Cyber Navi (594) ranks second and performs particularly well in car life support. Pioneer Cyber Navi experiences high rates of usage of navigation functions, such as destination search and route guidance and the music replay function. It performs particularly well among users in the 20-to-29 and 30-to-39 age groups.

Panasonic Gorilla ranks highest in the PND segment, achieving a score of 562 points. Gorilla performs particularly well in service support, driving support and car life support. Pioneer Air Navi (549) ranks second, and Sony nav-u (543) ranks third.

The 2012 Japan Navigation Systems Customer Satisfaction Study is based on responses from 2,513 owners of in-dash navigation systems and 1,000 owners of PND who purchased their system between April 2010 and March 2012. The Internet-based survey for this study was fielded in July 2012.

The Japan Navigation Systems Customer Satisfaction Index Study is one of eight consumer-based benchmark studies conducted by JD Power Asia Pacific in Japan. Other 2012 studies conducted by JD Power Asia Pacific are as follows:

• The Japan Winter Tire Customer Satisfaction Index Study was released in May 2012.
• The Japan Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in August 2012.
• The Japan Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to nine months of ownership, was released in August 2012.
• The Japan Customer Satisfaction Index (CSI) Study, which measures overall customer satisfaction with service performed at automotive dealer facilities, was released in September 2012.
• The Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to nine months of ownership, was released in September 2012.
• The Japan Original Equipment Tire Satisfaction Index Study, which measures customer satisfaction with original equipment tires equipped on new vehicles, was released in October 2012.
• The Japan Replacement Tire Satisfaction Study will be released in November 2012.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at http://japan.jdpower.com. Media e-mail contact: [email protected]

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies

McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and JD Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

 

While Price Entices Auto Insurance Customers in Japan to Buy a Policy, It Doesn’t Buy Their Loyalty

1970-01-01

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TOKYO: 6 August 2012 — Although price has the greatest influence on customer satisfaction at the time of purchase of a new insurance policy, price alone does not promote long-term customer loyalty, according to the JD Power Asia Pacific 2012 Japan Auto Insurance Shopping Satisfaction StudySM and the 2012 Japan Auto Insurance Satisfaction Study^SM both released today.

In both studies, satisfaction with insurance companies is measured in two segments based on the main selling method: agency-type insurers and direct-type insurers. Agency-type insurers primarily sell policies and interact with customers through insurance agencies, such as specialized agencies or automobile dealerships. Direct insurers sell policies and interact with customers directly, principally via the Internet or phone.

Policy has the greatest influence on satisfaction at the time of purchase of a new insurance policy, according to the 2012 Japan Auto Insurance Shopping Satisfaction Study. However, few customers who select their insurance provider based solely on price expect to remain with that carrier beyond the term of the policy. While 76 percent of customers who purchase through the direct-type channel select their insurer based on price, only 7 percent of customers who purchase a policy because of low price indicate that they “definitely will” renew with their insurer. In comparison, only 11 percent of customers who purchase through an agency-type insurer cite low price as a reason for selection, and 16 percent indicate that they anticipate renewing with their insurer.

In addition, for direct-type insurers and agency-type insurers alike, satisfaction and renewal intention rates are high among customers who select their insurer for reasons other than price, such as products that meet their needs.

The Auto Insurance Shopping Satisfaction Study also finds that customer-focused activities such as providing advice or proposals about compensation details or riders are highly effective in improving customer satisfaction.

“Demonstrating to customers that an insurance policy is suited to their needs through means such as proposals, explanations and information before they purchase the policy is critical to increasing customer satisfaction and starting long-term customer relationship,” said Chie Numanami, manager at JD Power Asia Pacific, Tokyo.

The 2012 Japan Auto Insurance Satisfaction Study, which surveys current policyholders, finds that nearly 90 percent of customers are loyal to their insurer. The average time frame of continuous policy ownership is 13 years for customers of agency-type insurers and four years for customers of direct-type insurers. Only 8 percent of customers have changed insurers in the past year.
“It is predicted that insurance market expansion will peak due to factors such as Japan’s declining birthrate and aging population and the trend toward reduced driving, especially among young people,” said Numanami. “In these circumstances, it is even more critical that insurers increase their yields among current customers and build long-term relationships.”

The study finds that overall satisfaction is high among customers who say they “definitely will” renew with their current provider as well as among long-term customers who have continuously held their policy for 10 years or longer, and is more than 30 index points (on a 1,000-point scale) higher, on average, than those who are less likely to renew. In addition, satisfaction in the interaction and claims factors is particularly high among these customers.

The study finds that overall satisfaction is 25 points higher, on average, among customers whose insurer sends a policy expiration notice at least two months before the expiration date than among customers whose insurer sends an expiration notice nearer the expiration date. Furthermore, satisfaction is higher when customers are contacted by the insurance company or agency within one week of receipt of the expiration notice. However, only 31 percent of customers receive an expiration notice at least two months before expiration and only 16 percent are contacted by the insurance company or agency within one week of receipt of the expiration notice.

“Meticulous, appropriate response on the part of the insurer or agency is the key to fostering relationships of trust with customers,” said Numanami.

2012 Japan Auto Insurance Shopping Satisfaction Study

The study, in its inaugural year, measures the satisfaction of customers who have recently purchased auto insurance for the first time or switched insurance companies. Overall satisfaction is measured in three factors (in order of importance): price, policy offering, and distribution channel, which measures the contact person or channel at the time of the policy purchase.

In the agency-type insurers segment, AIU ranks highest in customer satisfaction with an overall satisfaction score of 610 points. AIU performs particularly well across all three factors. Nipponkoa Insurance ranks second (586) and performs well in all three factors, while Fuji Fire & Marine Insurance ranks third (584), performing well in the policy offering and distribution channel factors.

In the direct-type insurers segment, Mitsui Direct General Insurance ranks highest in customer satisfaction with an overall satisfaction score of 669, and performs particularly well across all three factors. Saison Automobile & Fire Insurance ranks second (668), and performs well in all three factors. SBI Insurance ranks third (666) and performs well in the price factor.

The study is based on responses from 5,945 auto insurance (voluntary insurance) policyholders who have newly purchased auto insurance (including policyholders who switched from other insurance companies). The online study was fielded in May 2012.

2012 Japan Auto Insurance Satisfaction Study

The study measures the overall satisfaction of current automobile insurance (voluntary insurance) policyholders during the term of their auto insurance policy. Overall satisfaction is measured in five factors (in order of importance): policy offering; price; claims; policy statement; and interaction.

In the agency-type insurers segment, Fuji Fire & Marine Insurance ranks highest in customer satisfaction with an overall satisfaction score of 628 points and performs particularly well in the policy offering and policy statement factors. AIU ranks second (625), and performs well in the interaction and claims factors. Tokio Marine & Nichido Fire Insurance ranks third (617).

In the direct-type insurers segment, E.design Insurance ranks highest in customer satisfaction with an overall satisfaction score of 671 points and performs particularly well in the policy offering, price and claims factors. Saison Automobile & Fire Insurance ranks second (660) and performs particularly well in the policy statement, interaction and claims factors. SBI Insurance (659) ranks third and performs particularly well in the price factor. 

The online survey, based on responses from 8,758 auto insurance (voluntary insurance) policyholders, was fielded in May 2012.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

About JD Power and Associates

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies:

McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial’s leading brands include Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, JD Power and Associates and Platts, a leader in commodities information.  With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

 

More Than One-Half of Customers Compare Companies When Purchasing Life Insurance

2013-08-23

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TOKYO: 13 March 2013 — An increasing number of customers in Japan are comparing policies and prices from multiple insurers when shopping for life insurance, according to the JD Power Asia Pacific 2013 Japan Life Insurance Contract Customer Satisfaction (Pre-Purchase and Post-Purchase) Studies^SM released today.

The study finds that more than one-half of customers who recently purchased life insurance compared their policies with those of other companies during the purchase process. More than 60 percent of customers who purchased through insurance agencies (agencies that exclusively handle insurance) and more than 40 percent of those who purchased directly from insurance companies (from insurance company sales representatives) say they considered multiple insurance companies. In addition, the percentage of customers who obtained price quotes from multiple insurance companies has increased to 40 percent in 2013 from 36 percent in 2012.

Nearly one-third (30%) of customers indicate that they selected their life insurance policy because the “product or plan suited to me.” The second-most-frequently cited reason is “low premiums.”

The study finds that 73 percent of customers who purchased insurance for reasons pertaining to product suitability received explanations from their insurance company or agency regarding the comparative advantages of their policies or the method or amount of premium payments. Overall satisfaction averages 640 on a 1,000-point scale when customers receive such explanations, compared with the industry average of 622. Additionally, policy renewal intent among customers who receive these explanations is more than 10 percent higher than the industry average.

“As customers increasingly compare insurance products from multiple insurers before buying, providing them with clear and useful information about the advantages of their products may play an important role in increasing satisfaction and establishing long-term relationships with customers,” said Chie Numanami, senior manager at JD Power Asia Pacific. “When sales representatives help deepen customer knowledge not only of their own products, but also competitor products, while also proposing and explaining products suited to customer needs, there may be a positive impact on the number of policy sales and customer satisfaction.”

The study also examines the state of the post-purchase service of insurance companies and agencies and satisfaction among customers who have had their policies for more than two years. Overall satisfaction among these customers averages 580, substantially lower than satisfaction among those surveyed at the time of purchase, which is622 points.  Approximately 30 percent of customers indicate that they have reconsidered their current policies by examining products from other insurers. Furthermore, on average, satisfaction decreases the longer customers have their policy.

“The fact that the percentage of customers who have reconsidered their policies is increasing, as well as the fact that the risk of cancellation grows the longer customers have their policy, highlights a key challenge facing the life insurance industry,” said Numanami. “Insurance companies need to continue to focus on ways to connect with their long-time policyholders if they want to reap the benefits of customer loyalty.”

Communication from the insurance company is critical to customer satisfaction. The study finds that satisfaction increases, as does policy renewal intent, when the insurance company contacts customers during the policy period. An average of 78 percent of customers indicate that they received some kind of follow-up from their insurer during the past 12 months. While less than 10 percent of customers are contacted to discuss payments or benefits, satisfaction and loyalty rates are higher among these customers, compared with among those who are not contacted by their insurer.

“There is substantial room for improvement in the nature of contact between customers and their sales representatives or agencies,” said Numanami. “To reduce the risk of cancellation as life insurance policies extend over many years, it is important for sales representatives and agencies to maintain contact with customers, resolve questions or doubts and engage in activities to provide useful information regarding such topics as the claims process.”

The 2013 Japan Life Insurance Contract Customer Satisfaction (Pre-Purchase) Study, now in its second year, measures customer satisfaction with the customer service provided by insurance companies and agencies, as well as satisfaction with insurance companies during the purchase process. The study, based on online responses from 10,193 policyholders who purchased new life insurance policies or renewed policies during the past 12 months, was fielded in December 2012.

Overall customer satisfaction with life insurance contracts is based on four factors (in order of importance): customer service (35%); procedures and documentation (28%); premiums paid (20%); and products offered (18%).

Among the 19 insurance companies included in the life support insurance segment, The Prudential Life Insurance ranks highest in customer satisfaction for a third consecutive year, with a score of 698. The Prudential Life Insurance performs particularly well across all four factors that comprise overall satisfaction.

Sony Life Insurance ranks highest among the 16 companies included in the medical benefit insurance segment with a score of 668. Sony achieves high scores in customer service, products offered, and procedures and documentation.

Sony Life Insurance also ranks highest among the seven companies in the asset building insurance segment for a second consecutive year, with a score of 685. Sony performs particularly well across all factors.

The 2013 Japan Life Insurance Contract Customer Satisfaction (Post-Purchase) Study measures customer satisfaction with the customer service provided by insurance companies and agencies, as well as satisfaction with insurance companies after purchase. The study is based on online responses from 6,016 policyholders who purchased life insurance at least 24 months before the survey  and who had not purchased new policies or renewed policies during the past 12 months. The study was fielded in December 2012.

In both studies, life insurance products are classified under three main policy types according to customer awareness and needs, and satisfaction is measured for each policy type. The details of the insurance segments are as follows:

• Life Support Insurance: Policies cover death insurance, income guarantee insurance and long-term care insurance
• Medical Benefit Insurance: Policies cover cancer insurance and medical insurance
• Asset Building Insurance: Policies cover individual annuity insurance, variable life insurance, education endowment insurance and juvenile insurance

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

About JD Power & Associates

Headquartered in Westlake Village, Calif., JD Power & Associates is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information and ratings for cars, retail banking, credit cards, health insurance, cell phones, and more, please visit JDPower.com. JD Power & Associates is a business unit of McGraw Hill Financial.

About McGraw Hill Financial:

McGraw Hill Financial (NYSE:MHP), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power & Associates, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.

 

Insurance Company Sales Representatives Drive Higher Customer Satisfaction with Life Support and Medical Benefit Insurance Than Do Call Center Representatives

2013-08-23

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TOKYO: 24 July  2013 — Satisfaction among life support and medical benefit insurance customers who speak with an insurance company sales representative during the claims process is higher than among those who speak with a call center representative, according to the JD Power Asia Pacific 2013 Japan Life Insurance Claims Satisfaction Study^SM released today.

Now in its third year, the study measures overall satisfaction among customers who completed life insurance payment or benefits claim procedures during the past 12 months based on three factors (in order of importance): customer service (39%); claims payment (37%); and claim procedures (24%).

In 2013, overall satisfaction with life support insurance averages 623 (on a 1,000-point scale), while overall satisfaction with medical benefit insurance averages 657, which is a 10-point increase for each from 2012.

Satisfaction among customers for whom the point of contact is a sales representative is 40 points higher than among those who speak with a call center representative. Furthermore, when customers receive an explanation of their claim, satisfaction is 90 points higher and policy renewal intentions increase. More than 80 percent of customers who speak with a sales representative receive this explanation, compared with 70 percent of customers who speak with a call center representative.

According to the study, the quality of service provided by insurance company sales representatives, call center representatives and insurance agency representatives affects not only customer satisfaction with life insurance claim service, but also whether customers plan to renew or cancel their policies. Overall satisfaction among customers who have a positive experience with their insurer’s call center is 60 points higher than among those who do not have a positive call center experience. Additionally, highly satisfied customers are less likely to consider cancelling their policies or consider products from other insurance companies.

The study finds that 87 percent of customers completed the claim process with a single submission of claim forms, up from 84 percent from 2012. The percentage of customers who received explanations about the required form types and how to complete them has also increased from 2012.

“These findings suggest that the simplification of claim procedures and improvement in the provision of explanations by representatives contribute to higher satisfaction,” said Chie Numanami, senior manager at JD Power Asia Pacific.

American Life Insurance Company (MetLife Alico) ranks highest overall in the life support insurance segment with a score of 659, and The Prudential Life Insurance ranks highest overall in the medical benefit insurance segment for a third consecutive year, with a score of 716.

The 2013 Japan Life Insurance Claims Satisfaction Study is based on online responses from 6,501 policyholders. The study was fielded in December 2012.

The study segments life insurance products into two main policy types according to customer awareness and needs: life support insurance and medical benefit insurance. Details of the insurance segments are:

• Life support insurance: Policies cover death insurance; income guarantee insurance; and long-term care insurance
• Medical benefit insurance: Policies cover cancer insurance and medical insurance
• Customers are also asked about Internet-based life insurance companies, cooperative insurance companies and nonlife insurance companies to obtain data for reference purposes

JD Power Asia Pacific recently released the following studies concerning life insurance:

• JD Power Asia Pacific 2013 Japan Life Insurance Contract Customer Satisfaction Study (Pre-Purchase)—The study measures satisfaction with life insurance companies and agencies during the purchase process among customers who purchased new life insurance contracts or renewed contracts during the past 12 months.

• JD Power Asia Pacific 2013 Japan Life Insurance Contract Customer Satisfaction Study (Post-Purchase)—The study measures satisfaction with insurance company and agency customer service among customers who had not purchased new policies or renewed policies during the past 12 months.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected]

About JD Power

JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions.  The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North/South America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw Hill Financial.

About McGraw Hill Financial: McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.

 

Delivery Time for New Vehicles Decreases, Most Notably for Hybrid Vehicles

2013-08-28

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TOKYO: 28 August 2013 — The average time for new vehicles to be delivered to buyers decreases significantly, with the delivery time for hybrid vehicles decreasing by 23 days, according to the JD Power Asia Pacific 2013 Japan Sales Satisfaction Index (SSI) Study^SM released today.

The study, now in its 12th year, finds that the industry average delivery time has declined by nine days in 2013, compared with 2012 when implementation of the eco-car subsidy program added to delays in new-vehicle delivery times. The average delivery time for non-hybrid vehicles declines to 28 days in 2013, down from 34 days in 2012, and the delivery time for hybrid vehicles decreases to 50 days from 73 days in 2012. Among domestic brands, Toyota, the largest seller of hybrid vehicles in Japan, and Honda, which had its production in 2012 heavily affected by flooding in Thailand, achieve notable reductions in delivery times.

Satisfaction decreases as delivery time increases, and efforts to shorten delivery times are critical for maintaining and increasing customer satisfaction.

“Customer satisfaction has improved as delivery times have shortened due to an improvement in the balance between market demand and automaker production, compared with 2012, which was impacted by the eco-car subsidies,” said Taku Kimoto, executive director of the automotive division at   JD Power Asia Pacific.

The time required for explaining the vehicle at delivery averages 48 minutes. Time spent on the explanation tends to be longer for luxury brands than for mass market brands (66 minutes vs. 48 minutes, respectively). On average, customers indicate that 46 minutes is the appropriate amount of time for an explanation.   

“While many brands establish standards covering matters for explanation at the time of vehicle delivery, they may further benefit from defining the appropriate length of explanations, as well,” said Kimoto. “Customer satisfaction wanes when the explanation is too short or takes too long.”

According to the study, there are five items related to the explanation that should be performed at the time of delivery: the owner’s manual; the length and specifics of warranty; the schedule and details of routine maintenance; introduction to a contact person in the service department; and what to do in an emergency (accident or breakdown). Approximately one-half of Lexus owners indicate that they received a thorough explanation of all five items, the highest implementation rate in the industry.  

In addition to satisfaction among dealership customers who purchased a vehicle of that brand (referred to as buyers), the 2013 study for the first time also measures satisfaction among customers who considered purchasing a vehicle brand and visited a dealer but ultimately did not buy a vehicle of that brand (referred to as rejecters). For the industry overall, satisfaction is 128 points lower among rejecters than among buyers.

There is a notable gap in satisfaction scores between rejecters and buyers for Lexus and Audi among luxury brands and Nissan and Honda among mass market brands. While the vehicle, price and purchase terms are the most-frequently cited reasons for rejecting a brand, the dealer or dealer staff—reasons stemming from interaction at dealerships—account for more than 20 percent of the reasons cited for rejecting a brand.

“At a time when prospects for growth in domestic demand are poor, especially in light of the well-publicized decline in young people who drive, increasing the close rate with showroom visitors is a critical priority,” said Kimoto. “Automakers must analyze reasons for rejecting the brand and address those problems as quickly as possible.”   

The study measures customer satisfaction with the sales process at automotive dealerships based on four factors that contribute to overall satisfaction (in order of importance): salesperson (34%); working out the deal (26%); facility (21%); and delivery (20%). Sales service performance is reported as an index score based on a 1,000-point scale.

Overall sales satisfaction averages 666 index points in 2013. Lexus ranks highest among luxury brands with a score of 777, which is 49 points higher than the segment average. Lexus performs particularly well in all four factors.

Mercedes-Benz (724) ranks second in the luxury segment, followed by Audi (723), BMW (709) and Volvo (701).

In the mass market brand segment, MINI ranks highest with a score of 716 and performs particularly well in all four factors. Volkswagen (683) ranks second, followed by Nissan (677), Mitsubishi (673) and Honda (670).

The 2013 Japan Sales Satisfaction Index (SSI) Study measures customer satisfaction with the dealer where they purchased their new passenger vehicle. The study is based on responses from 7,200 domestic and import vehicle owners after an average of two to 12 months of ownership. The online survey was fielded from late May to mid-June 2013.

The Japan Sales Satisfaction Index (SSI) Study is one of eight consumer-based benchmark studies conducted by JD Power Asia Pacific in Japan. Other 2013 studies conducted by JD Power Asia Pacific include:

• The 2013 Japan Winter Tire Customer Satisfaction Index Study, which measures overall customer satisfaction with winter tires, was released in May.
• The 2013 Japan Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to nine months of ownership, is scheduled for release in August.
• The 2013 Japan Customer Satisfaction Index (CSI) Study, which measures overall customer satisfaction with service performed at automotive dealer facilities, will be released in late September.
• The 2013 Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to nine months of ownership, will be released in late September.
• The 2013 Japan Original Equipment Tire Satisfaction Study, which measures customer satisfaction on original equipment tires, will be released in October.
• The 2013 Japan Navigation Systems Customer Satisfaction Index Study, which measures customer satisfaction with OEMs and aftermarket navigation system, will be released in October.
• The 2013 Japan Replacement Tire Satisfaction Study, which measures customer satisfaction with replacement tires, will be released in October.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at japan.jdpower.com. Media email contact: [email protected]

About JD Power

JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North/South America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw Hill Financial.

About McGraw Hill Financial

McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.

 

Nearly 90 Percent of Vehicle Owners in Japan Take Their Vehicles to Dealerships for After-Sales Service, Testing the Capacity of Service Bays

2013-09-25

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TOKYO: 25 September 2013 — With an increased percentage of owners in Japan taking their vehicles to dealerships for service, the ability to get an appointment at owners’ desired time and day has a significant impact on overall satisfaction, according to the JD Power Asia Pacific 2013 Japan Customer Service Index (CSI) Study^SM released today.

The study, now in its 12th year, measures overall customer satisfaction with service performed at automotive authorized dealer facilities based on five factors (in order of importance): vehicle pick-up (21%); service representative (21%); service quality (21%); facility (19%); and service initiation (18%). Overall customer satisfaction is reported as an index score based on a 1,000-point scale, with a higher score indicating higher customer satisfaction.

For the industry overall, as a venue of vehicle hand over for servicing, 88 percent of owners take their vehicles to the dealer when they obtain after-sales services in 2013, a 10-percentage-point increase from 2008 and vehicle pick-up offering by dealer is getting much lesser than the past. The luxury brand average (70%) and mass market brand average (89%) have each increased by approximately 10 points during the same period. Additionally, 90 percent of owners make a service appointment in advance, a 9-percentage-point increase from 2008. 

“With an increased percentage of owners taking their vehicle to dealers for service, being able to obtain service at the desired date and time is critical to satisfaction,” said Taku Kimoto, executive director of the automotive division at JD Power Asia Pacific, Tokyo. “With the majority of owners taking their vehicle in for after-sales services, the ability of dealers to accept vehicles for service at the customer’s desired date and time is put to the test.”

The study finds that satisfaction is 86 points higher among vehicle owners who are able to make an appointment at their preferred date and time than among those who are unable to do so.

“It’s important for dealers to proactively manage their service operations by contacting vehicle owners and scheduling service appointments,” said Kimoto. “Since the number of customers managed by dealers continues to increase, and with owners keeping their vehicles longer, the need for service appointment management is likely to increase even more.”

The most important element of service quality, one of three factors having the greatest impact on overall satisfaction, is the vehicle’s condition upon return. Satisfaction is significantly higher (2.1 points on a 10-point scale) among customers whose dealer does “a good job” of both car washing and cleaning the interior of the vehicle than among those whose dealer fails to do “a good job” on both.

By brand, 64 percent of Lexus owners say the dealer does “a good job” of both car washing and interior cleaning. The percentages of mass market brand owners who say the dealer does “a good job” of both tasks are low, with a wide variance among brands.

“Since service quality is a factor that has a major impact on the overall after-sales service experience, this is an area in which automakers should make further improvements,” said Kimoto. “Returning the vehicle in clean condition offers an excellent opportunity for dealers to impart to customers a favorable impression of the quality of their service operations overall, and a way for dealers to differentiate themselves from competitors.”         

The study finds that the higher the overall CSI score, the stronger the intention among customers to revisit an authorized dealer for all eight after-sales service items: routine maintenance (other than shaken inspection); shaken inspection※ ; installation of accessories, such as a navigation system; oil change; replace consumables, such as wiper blades and batteries; purchase or replace tires; conduct repairs for breakdowns or problems; and body repairs, such or paint. Nearly one-half (48%) of customers who are highly satisfied with their service experience (overall CSI scores of 800 and higher) are willing to revisit authorized dealers for all of their after-sales services, compared with only 28 percent of those who are less satisfied (overall CSI scores of 500 and lower).

※Shaken inspections are performed to ensure that vehicles are properly maintained, safe to be on the road and have not been illegally modified. These inspections are required every two to three years.

“In the Japanese auto market, where prospects for growth in domestic demand are poor, after-sales services are the greatest source of income for dealerships,” said Kimoto. “Measures to increase customer satisfaction are essential to achieving continuity and stability of income from after-sales services.”

Overall service satisfaction averages 679 index points in 2013.  

Rankings

Lexus ranks highest in the luxury segment with an overall CSI score of 816, which is 56 points higher than the segment average of 697. Lexus performs particularly well in all five factors.

MINI and Mazda rank highest in a tie in the mass market brand segment with a score of 697 each, which is 20 points higher than the segment average of 677. MINI ranks highest in the segment for a second consecutive year. Nissan (689) ranks third in the segment.

The 2013 Japan Customer Service Index (CSI) Study measures passenger-vehicle owner satisfaction with after-sales service obtained during the most recent one-year period at an authorized dealership. The study is based on responses from 9,792 domestic and import vehicle owners after 15 to 50 months of ownership. The online survey was fielded from late May through late June 2013.

The Japan Customer Service Index (CSI) Study is one of eight consumer-based benchmark studies conducted by JD Power Asia Pacific in Japan. Other 2013 studies conducted by JD Power Asia Pacific include:

• The 2013 Japan Winter Tire Customer Satisfaction Index Study, which measures overall customer satisfaction with winter tires, was released in May.
• The 2013 Japan Initial Quality Study (IQS), which measures problems experienced by new-vehicle owners during the first two to nine months of ownership, was released in August.
• The 2013 Japan Sales Satisfaction Index (SSI) Study, which measures satisfaction with the new-vehicle sales process, was released in late August.
• The 2013 Japan Automotive Performance, Execution and Layout (APEAL) Study, which measures what excites and delights owners about their new vehicle’s performance and design during the first two to nine months of ownership, will be released in late September.
• The 2013 Japan Original Equipment Tire Satisfaction Study, which measures customer satisfaction with original equipment tires, will be released in October.
• The 2013 Japan Navigation Systems Customer Satisfaction Index Study, which measures customer satisfaction with OEMs and aftermarket navigation system, will be released in October.
• The 2013 Japan Replacement Tire Satisfaction Study, which measures customer satisfaction with replacement tires, will be released in October.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at japan.jdpower.com. Media email contact: [email protected]

About JD Power

JD Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., JD Power has offices in North/South America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power is a business unit of McGraw Hill Financial.

About McGraw Hill Financial

McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence company providing the global capital and commodity markets with independent benchmarks, credit ratings, portfolio and enterprise risk solutions, and analytics. The Company’s iconic brands include: Standard & Poor’s Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, JD Power, and McGraw Hill Construction. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.

 

Price Hikes Spark Sharp Decline in Customer Satisfaction with Auto Insurance Providers

1970-01-01

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TOKYO: 22 July 2014 — Premium increases under a new rating scheme have a negative impact on customer satisfaction with direct-type insurers, according to the JD Power Asia Pacific 2014 Japan Auto Insurance Shopping Satisfaction Study^SM and the JD Power Asia Pacific 2014 Japan Auto Insurance Satisfaction Study^SM both released today.

The Japan Auto Insurance Shopping Satisfaction Study, in its third year, measures satisfaction with the contact person or channel at the time of the policy purchase among customers who recently purchased auto insurance for the first time or switched insurance companies. Overall satisfaction is measured in three factors: policy offering, price and distribution channel.

The Japan Auto Insurance Satisfaction Study, now in its 11th year, measures overall satisfaction among current auto insurance (voluntary insurance) customers during the term of their auto insurance policy. Overall satisfaction is measured in five factors: policy offering, price, policy statement, interaction and claims.

Both studies segment insurance companies based on their primary selling methods: agency-type insurers and direct-type insurers. Agency-type insurers primarily sell policies and interact with customers through insurance agencies, such as specialized agencies or automobile dealerships. Direct insurers sell policies and interact with customers directly, principally via the Internet or phone. Satisfaction is calculated on a 1,000-point scale.

The Japan Auto Insurance Shopping Satisfaction Study finds that overall satisfaction with agency-type insurers averages 564 in 2014, a 10-point decline from 2013, while satisfaction with direct-type insurers averages 624, down 23 points from last year. The decline in satisfaction with direct insurers is primarily due to a 27-point drop in price satisfaction year over year.

Similarly, the Japan Auto Insurance Satisfaction Study finds a decline in overall satisfaction with both agency and direct insurers, driven by an increase in the percentage of customers who experience a premium increase, due in part to the General Insurance Rating Organization of Japan’s insurance rate plan. According to the study, 31 percent of current policyholders indicate their premiums have increased during the past year, up from 29 percent in 2013. As a result, satisfaction with agency insurers averages 602, down 17 points, while satisfaction with direct-type insurers averages 615 in 2014, a 26-point decrease from 2013. Satisfaction in the policy offering and price factors declines by 30 points and 29 points, respectively.

While insurance premiums are increasing, the number of times insurance providers are contacting their customers is decreasing. Only 49 percent of customers indicate they were contacted by their insurance company during the past year, compared with 55 percent in 2013.

“The increase in premiums has negatively impacted satisfaction with direct-type insurers, for which low premiums is a key attribute,” said Chie Numanami, senior manager, JD Power Asia Pacific. “With the increases in premiums as a result of the government rate scheme that went into effect in early 2013, it is critical that insurance providers proactively communicate with customers to make them aware of rate hikes and to reinforce the value of their insurance policy. Effective communication can increase satisfaction and foster loyalty.”

KEY FINDINGS

• The Japan Auto Insurance Shopping Satisfaction Study finds that insurance premiums for customers who purchased auto insurance for the first time in 2014 are 1,141 higher than among those who purchased insurance for the first time in 2013.
• While overall satisfaction with agency-type insurers at the time of policy purchase declines by 10 points, the insurance shopping study finds the average premium amount in 2014 has remained the same as in 2013 (60,844).
• Satisfaction with the contact person or sales channel at the time of the policy purchase averages 632 in 2014, down 15 points from 2013, according to the insurance shopping study. Furthermore, 63 percent of customers indicate the contact person with whom they spoke provided useful advice about insurance coverage options and compensation details, or policy riders, compared with 68 percent in 2013. Satisfaction among customers who receive advice about compensation details or policy riders averages 588, which is 90 points higher than among those who were not provided such information.
• In the Japan Auto Insurance Satisfaction Study, interaction satisfaction, which measures satisfaction with the agency that serves as the point of contact for renewal procedures, change of policy details and inquiries, has declined to 667 in 2014 from 688 in 2013.

Japan Auto Insurance Customer Satisfaction Rankings

In the Japan Auto Insurance Shopping Satisfaction Study, AIU Insurance Company ranks highest in customer satisfaction in the agency-type insurers segment for a third consecutive year, achieving a score of 600. AIU Insurance Company performs particularly well across all three factors. Nisshin Fire and Marine Insurance ranks second (592) and Fuji Fire and Marine Insurance ranks third (576); both perform well across all three factors.

In the Insurance Shopping Satisfaction Study direct-type insurers segment, Saison Automobile and Fire Insurance ranks highest in customer satisfaction for a second consecutive year, achieving a score of 641 and performing particularly well in the policy offering factor. SBI Insurance ranks second (638) and performs particularly well in the price factor. E.design Insurance ranks third (624), performing well in the policy offering and price factors.

In the Japan Auto Insurance Satisfaction Study, AIU Insurance Company ranks highest in customer satisfaction in the agency-type insurers segment for a second consecutive year, achieving a score of 650. AIU Insurance Company performs particularly well across all five factors. Fuji Fire and Marine Insurance and Nipponkoa Insurance rank second in a tie (614 each), and each insurer performs particularly well across all five factors.

Saison Automobile and Fire Insurance ranks highest in customer satisfaction among direct-type insurers for a second consecutive year, achieving a score of 627 and performing particularly well in the policy offering factor. Sony Assurance ranks second (624), performing particularly well in the interaction and claims factors, while SBI Insurance ranks third (617), performing particularly well in the price factor.

The Japan Auto Insurance Shopping Satisfaction Study is based on responses from 8,345 auto insurance (voluntary insurance) customers who recently purchased auto insurance (including customers who switched from another insurance company). The online study was fielded in May 2014. The Japan Auto
Insurance Satisfaction Study, based on online responses from 9,065 auto insurance (voluntary insurance) customers, was fielded in May 2014.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at japan.jdpower.com.

About McGraw Hill Financial www.mhfi.com

 

Auto Insurance Claims Response Impacts Customer Renewal Rates; Providers Following Up with Customers after Claims Settlement Helps Build Loyalty

2014-09-11

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TOKYO: 31 July 2014 — Overall, 88 percent of customers in Japan renew their auto insurance policy with the same insurance company after a claims response experience; however, renewal rates vary greatly depending on customer satisfaction levels, according to the JD Power Asia Pacific 2014 Japan Auto Insurance Claims Satisfaction Study^SM released today.

The study examines satisfaction with the claims response of auto insurance (voluntary insurance) companies among customers who have submitted an accident claim to their insurer within the past two years. Customer satisfaction is determined by examining six factors (in order of importance): settlement (44%); first notice of loss (20%); service interaction, which measures interaction with the service representative from the time of the accident report to settlement (18%); appraisal (14%); repair process(2%); and rental car experience (2%). The service interaction and rental car experience factors examine satisfaction with the service customers receive from an insurance agency or rental car facility introduced or specified by the insurance company or agency. Overall satisfaction scores are based on a 1,000-point scale.

The study finds that 93 percent of highly satisfied customers (satisfaction scores of 800 or above) renew their policies after the claims response, while the renewal rate among customers with low satisfaction (scores 500 or lower) is only 73 percent.

“This finding clearly indicates that the claims response capabilities of auto insurance companies substantially influence customer retention,” said Chie Numanami, senior manager, JD Power Asia Pacific.  “The study also finds that policy renewal rates vary according to whether or not insurers follow up after the claims response. To ensure a positive claims experience, as well as increase policy renewal rates, it is important for insurers to follow up with their customers to offer advice on their policy or an explanation of premiums.”

KEY FINDINGS

• ŸOverall satisfaction with the auto insurance claims process averages 666 in 2014, down from 691 in 2013.
• ŸThe policy renewal rate among customers with low satisfaction increases to 78 percent when insurers offer advice regarding policy details or an explanation of premiums at the time of the next policy renewal after a claims response. Renewal rates among customers with low satisfaction drops to 68 percent when they do not receive follow-up from their insurance company.
• ŸThe introduction of the General Insurance Rating Organization of Japan insurance rate plan in 2013 has increased demand for insurers to provide an explanation of premiums after the claims response. The study finds that 84 percent of customers of insurance companies with high renewal rates (more than 90%) receive follow-up from their insurer, while only 62 percent of customers of insurance companies with low renewal rates (less than 80%) receive follow-up.
• Claimants wait an average of 46 days for settlement of a repair claim and 70 days for settlement of a total-loss claim.
• Satisfaction averages 733 when a claim is settled in 28 days or fewer. When claims settlement takes more than 28 days, satisfaction drops to 626.

Japan Auto Insurance Claims Satisfaction Rankings

AIU Insurance Company ranks highest in overall satisfaction with the claims response for a sixth consecutive year, with a score of 719. AIU Insurance Company performs particularly well in four factors: first notice of loss; service interaction; appraisal; and settlement. American Home Assurance Company ranks second with a score of 695. Fuji Fire and Marine Insurance and Sompo Japan Insurance rank third in a tie with 680.

The 2014 Japan Auto Insurance Claims Satisfaction Study is based on responses of 6,315 auto insurance customers who submitted an accident claim to their insurance company within the past two years (including those who switched insurance companies after their accident and now have a policy with another insurer). The online study was fielded in May 2014.

About JD Power Asia Pacific

JD Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding JD Power Asia Pacific and its products can be accessed through the Internet at japan.jdpower.com.

About McGraw Hill Financial www.mhfi.com 

No advertising or other promotional use can be made of the information in this release without the express prior written consent of JD Power. www.jdpower.com