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 have adjusters who 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 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. 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.
Only one in three auto insurance customers filing a claim report receiving all of the top service practices (see Stellar Service, end of article). Among these customers, satisfaction averages 919 on a 1,000-point scale, with 75 percent indicating they "definitely will" renew their coverages. 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. "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.
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