Claims News Service, Nov. 5, 10:56 a.m. EST — The findings of the J.D. Power and Associates 2008 Auto Claims Satisfaction Study indicate that policyholders are more content and thus more inclined to renew policies with insurers that express empathy and effectively meet expectations.
Drawing upon 11,671 responses from auto insurance customers who filed a claim within the past 12 months, the recent study examined satisfaction levels of auto physical damage claimants with the overall claim process. It excluded customers who only had glass/windshield, theft/stolen vehicle, roadside assistance, or bodily injury claims. Fielded from July to August 2008, the survey ranked Lansing, Michigan-based Auto-Owners Insurance highest in providing a satisfying claim experience for auto insurance customers. Depending on the complexity of a claim, the customer may experience all or only some of the following factors: claim settlement; service interaction; first notice of loss; repair process; and rental experience.
Based on the research, it is evident that managing expectations, showing empathy, ensuring convenient service, and communicating effectively are key ways in which insurers can enhance the claim experience from a consumer standpoint. Specifically, J.D. Power and Associates found that implementing ten service practices positively impacts policyholders' sense of well-being in regard to claim handling. To improve customer satisfaction, insurers should make a concerted effort to:
Answer all customer questions.
Manage expectations pertaining to the settlement.
Express genuine concern.
Avoid negotiated settlements.
Provide flexible appraisal appointments.
Return phone calls.
Share information between representatives.
Provide proactive updates
Ensure customers are at ease with the claim process.
Give customers a time line and meet it.
Only one in three auto insurance customers filing a claim report receiving all of the top service practices. Among these customers, satisfaction averages 919 on a 1,000-point scale, with 75 percent indicating they "definitely will" renew their coverage. Additionally, satisfaction declines considerably among customers who only receive six or fewer key practices (594 points).
"Implementing these practices and enhancing the customer experience clearly has tremendous benefits for insurance providers through potentially increased renewal rates," said Jeff Leiman, senior director of the insurance practice at J.D. Power and Associates. "For many auto claimants, filing a claim can be a trying experience. Providing empathetic service and expressing genuine concern for the specifics of their personal situation, especially during the first notice of loss, is an absolute must in providing a satisfying experience."
Auto-Owners ranks highest in providing a satisfying claims experience for auto insurance customers with a score of 864. It performs well in the service interaction, settlement and repair process factors. Amica Mutual follows in the ranking with a score of 860, performing well in the first notice of loss factor. State Farm ranks third overall, with 851 points. The Hartford (833) and Country (826) round out the top five ranked insurers.
Interested in more auto-claim news and in-depth articles? Head over to Claims' auto-claim channel for more information.
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