Home Insurers Satisfy Most, Survey Says

By Michael Ha

NU Online News Service, Dec. 16, 3:39 p.m.EST?Despite rising premiums, most Americans are satisfiedwith companies that provide their personal insurance, according toa new study by Insurance Research Council in Malvern, Pa.

The study--which is based on interviews conducted last June withsome 2,000 respondents in the U.S.--found that 93 percent of thosesurveyed were satisfied with their homeowners insurers.

In addition, some 86 percent of respondents with auto policiessaid they were satisfied with their auto insurers, the surveyfound.

The majority of respondents also stated that they were happywith how the insurance industry handled the needs of customers whowere affected by the events of Sept. 11. Sixty-one percent saidthey believe the insurance industry has been responsive to itscustomers affected by the terror attacks.

IRC pointed out, however, that the percentage of satisfiedconsumers has declined slightly since its last survey two yearsago.

In 2000, 97 percent of respondents expressed their satisfactionwith companies that provide their homeowners insurance, while 96percent said they were happy with their auto insurers--the currentsatisfaction level is in line with the results from its 1995survey, IRC said.

"This is part of IRC's public attitude monitor where weperiodically interview the public on topics related to riskmanagement," said Elizabeth Sprinkel, senior vice president at theAmerican Institute for Chartered Property Casualty Underwriters andthe Insurance Institute of America, the parent organizations forthe IRC.

"The results were not surprising--we typically find a highsatisfaction level, and the small drop this year was in line withthe overall insurance environment. Our feeling is that the declinewas the result of rate increases in property-casualty lines ofinsurance, triggered by declining profitability due to risingrepair costs, falling investment income, the Sept. 11 terroristattacks, and other catastrophes," Ms. Sprinkel said.

But despite rate increases, consumer satisfaction with theinsurance industry remains exceptionally strong, she noted.

"Improvements in technology, customer service and productofferings helped to offset the impact of rising costs on consumersatisfaction," she said, adding, "So I don't think we can assumethat the level of consumer satisfaction will continue to drop evenif the rates continue to go up."

Furthermore, the satisfaction rate in the IRC survey looksespecially high when compared to other financial service sectors,Ms. Sprinkel added.

"In a recent consumer satisfaction index by the University ofMichigan, banks had a score of 72 out of 100 in the financialservices sector, while property-casualty lines came in at 79 out of100," she said.