The recently released 2012 Satmetrix Net Promoter BenchmarkStudy reveals the leaders and laggards in customer loyalty withinthe insurance industry. Brand loyalty is an important factor forany company: loyal insurance customers not only stay with a companyand go to it for all their needs, but they are also more likely torecommend the company to new customers as well.

To calculate each company's Net Promoter Score (NPS), Satmetrixpolled 30,000 Americans on their likelihood to recommend thecompany and asked them to rate the company overall on an 11-pointscale as well as on various other aspects of customer experienceincluding product or service features, customer service and overallvalue.

And the results are in. Click “Next” to see who are the leadersand laggards in customer loyalty in the homeowners, auto, healthand life insurance sectors. John Abraham, general manager of NetPromoter programs at Satmetrix, provides insight into clients'feedback on the companies.

Homeowners' Insurance Leaders

USAA: 71%

Harford 43%

“One insurer that stood out from the pack was USAA,” saysAbraham. “Across both the auto and homeowners insurance sectors,the company's customers laud the excellent service, usingdescriptors such as 'awesome' and 'excellent.'

“Customers also conveyed a sense of trust in the company and itspeople, in addition to commenting on fair prices and greatcoverage. The high degree of loyalty was also reflected incustomers' ongoing dedication to the company, with many customerscalling out their long-term affiliation with the company.”

Homeowners' InsuranceLaggards

Travelers: 20%

American Family: 18%

“In the case of the lowest-rated companies across all sectors[...] customers were often negative about the high rates orunexpected increases,” says Abraham.

Auto InsuranceLeaders

USAA: 74%

Hartford: 45%

Commenting on homeowner's and autoinsurance leader The Hartford, Abraham says “The company's mix ofcustomers leaned toward an older demographic, with many promotersciting a combination of quality customer service, competitive ratesand plans that were well suited to the 55-plus age group. Thecompany has successfully leveraged its affiliation with AARP togain praise from this specialized niche of insurance buyers.”

Auto InsuranceLaggards

Travelers: 22%

Farmers: 22%

“Detractors also made complaints about customer service duringthe claims process,” says Abraham about the insurance sectorcustomer loyalty laggards.

Health Insurance Leaders

Kaiser: 33%

Humana: 16%

“Kaiser Permanente stood out in the health insurance sector,”says Abraham. “The company was differentiated by its unique modelcombining the insurance plan with healthcare delivery. Thehealthcare delivery component allowed the company to forge positiverelationships at the brand level with its customers, and reflectedpositively on how customers commented on the insurance aspect ofthe relationship.”

Health Insurance Laggards

AETNA: -11%

Anthem: -15%

“The silver lining [for laggards], however, was that manylow-performing carriers simply had not been effective in building arelationship that was worthy of comment,” says Abraham. “Thatleaves the door wide open for companies to break away from the packby thinking creatively about engaging in a positive way withcustomers to meet their needs and earn their long-termloyalty.”

Life Insurance Leader

State Farm: 28%

“State Farm led the life insurance sector again this year [...]with positive comments about customer service, company reputationand the company's agent network,” explains Abraham.

Life Insurance Laggard

Liberty Mutual: -7%

According to Abraham, Liberty Mutual's low NPS in the lifeinsurance category was “driven mostly by low engagement fromcustomers who indicated that the insurance had been purchasedthrough their employer, and that they had not had any opportunitiesto interact with the company.

“What's interesting is that [this] company [doesn't] have morecomplaints or severely unhappy customers,” continues Abraham. “[Itis] just suffering from really low awareness and engagement withcustomers.”