Homeowners insurers in recent years have done a better jobportraying coverage as a value sale, evidenced by increases inconsumer satisfaction with policy offerings, according to aninsurance expert with J.D. Power & Associates.

Jeremy Bowler, senior director of the global insurance practiceat J.D. Power, says customer satisfaction in the company's mostrecent survey was at787 on a one-thousand-point scale, up by twopoints compared to last year's survey. Bowler notes thatsatisfaction had been trending upward leading up to and into 2009,before dropping from 773 to 750 in 2010 due to the recession. Theindustry has seen steady improvement since then, Bowler notes.

In this year's survey, Bowler says satisfaction with pricingdeclined, while satisfaction with claims and policy services was apush. The satisfaction gains, he said, were in billing and payment,and policy offerings.

Bowler notes that insurance ads tend to focus mostly on price,but he pointed to a resurgence of the idea of insurance as a “valuesale,” which has contributed to the higher satisfaction inofferings. Bowler mentioned ads focusing vanishing deductibles andAllstate ads featuring Mayhem—a fictional character that highlightswhat risks insurance protects against—as examples.

In effect, satisfaction is not due to any significant changes inthe policies themselves, Bowler says, but rather how insurers havehighlighted coverages.

Agents, Think Rental Insurance!

J.D. Power also used this year's survey to highlight anopportunity for agents to build long-term relationships withcustomers by concentrating more on renter's insurance. Bowler notesthat agents tend to focus more on auto or homeowners policies, asthose coverages offer more “bang for the buck” as far higherpremiums and, therefore, higher commissions.

But J.D. Power notes that agents “are missing a goldenopportunity to build long-term relationships with renter customersas their insurance needs grow due to life or circumstancechanges—such as having a family or purchasing a home or additionalcar.”

Additionally, there are plenty of opportunities to informclients about his coverage, as J.D. Power states that 46 percent ofrenters are uninsured. Bowler points out that renter's insurance isnot compulsory as homeowners and auto are in most states, and thatcontributes to the much lower take-up rate.

But Bowler notes that more rental companies are moving towardrequiring renter's insurance on properties and own, and he addsthat, since the housing crisis, many people accustomed to havinginsurance on their possessions have switched from being homeownersto renting.

Satisfaction Leaders

As for this year's satisfaction survey, Amica Mutual topped allinsurers with a satisfaction score of 842. State Farm (813)finished second, and Auto-Owners Insurance (812), Erie Insurance(811) and Automobile Club of Southern California (808) rounded outthe top five. Encompass, American Family, Progressive, COUNTRY,Allstate and Geico all finished above the 787 industry average.

The Hartford finished right at 787.

Travelers had the lowest satisfaction rate among the listedinsurers at 756. NCNU Insurance Exchange, Nationwide, MetLife,Safeco, Automobile Club Group, Chubb, The Hanover and LibertyMutual all finished below the industry average.

USAA scored 894, but was excluded from the rankings since it isonly open to military personnel and their families.