In a study released last month by J.D. Powers and Associates,claim handling was listed as one of the major behaviors exhibitedby insurers that directly impacts customer satisfaction andloyalty.

The report, called the “2006 National Auto Insurance Study,”said that for customers who file a physical damage claim with theirauto insurer, time is one of the most important qualities. Thestudy recommended a same-day response to the first notice ofaccident, followed by a settlement within a week and repairscompleted within two weeks as the standard by which all insurersshould be measured. Why? Satisfaction with claim-handling practicesdrives 44 percent of the overall impression of their insurer forcustomers who recently filed an auto claim.

The study also identified and tracked performance on otherspecific and measurable behaviors on the part of the insurer inregards to customer satisfaction levels. For example, autoinsurance customers are more satisfied when they only have tocontact their insurers once to resolve an issue; satisfactiondeclined significantly with each additional contact. When a returncall was required, those who received one when promised rated theirinsurers 135 points higher than those who did not.

Overall customer satisfaction with auto insurers improved for afourth consecutive year, although the rate of improvement hasslowed, according to the report. Satisfaction was measured based onperformance in five factors: interaction, billing and payment,policy offerings, price, and claims (see Company Index Ranking forcomplete results).

J.D. Powers' study was based on responses from 14,066 autoinsurance policyholders who were surveyed between April and May2006.

Company Index Ranking

(Out Of 1,000)

• Amica Mutual: 871
• Erie: 825
• State Farm: 823
• GEICO: 811
• American Family: 803
• Automobile Club of South. Cali.: 803
• Encompass: 800
• INDUSTRY AVERAGE: 800
• Allstate: 799
• The Hartford: 793
• MetLife: 791
• St. Paul Travelers: 790
• Calif. State Automobile Assoc.: 788
• Safeco: 782
• Automobile Club Group: 779
• Liberty Mutual: 778
• Nationwide: 776
• 21st Century: 774
• Farmers: 773
• Progressive: 773
• Allied: 765
• Mercury: 765
• GMAC: 752
• AIG: 740
• USAA: 913*

*USAA is an insurance provider open only to U.S. militarypersonnel and their families.

Source: J.D. Powers and Associates