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20 homeowners' insurance companies ranked highest for customer satisfaction

Results from the J.D. Power 2017 Home Insurance Study

According to a J.D. Power study, U.S. homeowners' insurance customer satisfaction scores have never been higher. (Image: Shutterstock)
According to a J.D. Power study, U.S. homeowners' insurance customer satisfaction scores have never been higher. (Image: Shutterstock)

U.S. homeowners' insurance customer satisfaction scores have never been higher, according to the new J.D. Power 2017 U.S. Home Insurance Study.

The annual study found the score has reached an all-time high of 808 (on a 1,000-point scale), driven by improvements in policy offerings. This number is up 4 points from 2016, and J.D. Power researchers say the record score comes after years of declining catastrophic losses and stable pricing.

However, researchers note insurers face a critical test maintaining this high score following this season’s string of devastating natural disasters that created historic property losses and profit strains.

Related: 5 client takeaways from Hurricanes Harvey and Irma

“Although property insurers have made great strides in overall customer satisfaction over the past several years, the areas where they consistently see the lowest satisfaction scores are price and direct customer service,” said Greg Hoeg, Vice President of U.S. Insurance Operations at J.D. Power. “Those two areas in particular will be under enormous stress as insurers address losses from the recent hurricanes.”

InsurTech and its impact on insurers 


J.D. Power researchers say these challenges are worsened by the threat of rising insurance technology innovators. These InsurTech companies have raised over $7.1 billion globally since 2012, and are attempting to infiltrate the marketplace by offering lower premiums and technologically advanced self-service interactions via the web and mobile.

However, traditional service providers are adapting to the technology curve by partnering with smart home assistants like Google Home and Amazon Echo to increase customer engagement and improve customer satisfaction, the report states.

Related: Regulators take note: Consumers want better insurance technology

“The risk to customer satisfaction in the wake of catastrophic events transcends those directly affected and expands to other insureds whose satisfaction with service is also affected by the image of their carrier,” said Robert Lajdziak, Business Consultant for the North American Insurance Practice at J.D. Power.

“Further, if carriers need to raise rates they need to execute on several best practices that mitigate the potential negative effect associated with premium increases. Examples include ensuring customers understand their policy, explaining what the policy covers and discussing premium change options.” 

Related5 top insurance tech trends for 2017 

Study rankings


The results of the U.S. Home Insurance Study are based on responses from 15,909 online interviews. To conduct this annual study, satisfaction among homeowners insurance customers was measured by examining 5 factors:

  1. Interaction.
  2. Policy offerings.
  3. Price.
  4. Billing process and policy information.
  5. Claims.

Satisfaction is calculated on a 1,000-point scale.

Here are the top 20 homeowners’ insurance companies ranked highest for customer satisfaction, according to J.D. Power’s 2017 study: 

Farmers Insurance logo

20. Farmers


Total customer satisfaction score: 796.

Chubb logo 

19. Chubb


Total customer satisfaction score: 797.

 

18. Automobile Club Group


Total customer satisfaction score: 798.

Liberty Mutual home insurance logo 

17. Liberty Mutual


Total customer satisfaction score: 799.

Encompass Insurance logo

16. Encompass


Total customer satisfaction score: 799

AIG logo

15. AIG


Total customer satisfaction score: 800.

Travelers Insurance logo

14. Travelers

Total customer satisfaction score: 802.

Mercury Insurance logo

13. Mercury


Total customer satisfaction score: 805.

Nationwide Insurance logo

12. Nationwide


Total customer satisfaction score: 806.

American Family Insurance logo

11. American Family


Total customer satisfaction score: 812.

Allstate logo

10. Allstate


Total customer satisfaction score: 817.

Auto Club of Southern California Insurance Group logo

9. Auto Club of Southern California Insurance Group


Total customer satisfaction score: 819.

The Hartford insurance company logo

8. The Hartford


Total customer satisfaction score: 820.

Cincinnati Insurance logo

7. Cincinnati Insurance


Total customer satisfaction score: 822.

State Farm logo

6. State Farm


Total customer satisfaction score: 823.

Auto-Owners Insurance logo

5. Auto-Owners Insurance


Total customer satisfaction score: 836.

Erie Insurance logo

4. Erie Insurance


Total customer satisfaction score: 837. 

COUNTRY Financial logo

3. Country Financial


Total customer satisfaction score: 839.

 Shelter Insurance logo

2. Shelter


Total customer satisfaction score: 850.

Amica Insurance logo

1. Amica Mutual


Total customer satisfaction score: 866.

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