A survey of U.S. consumer experience with a variety of professions finds they rate their interactions with independent insurance agents as less than enjoyable.
Forrester Research Inc. last week released the results of its "Customer Experience Index 2010″ for a number of different industries throughout the United States, including insurance providers.
Independent agents received an overall score of "okay" from the more than 4,600 consumers surveyed about a variety of companies. The survey, done over the Internet last October, asked consumers to rate providers–including agents and carriers–on three areas: "meets needs," "easy to work with" and "enjoyable."
When it comes to "enjoyable," consumers rated independent agents "poor," but gave them "good" ratings for "meets needs" and "easy to work with."
The report found that among the carriers assessed, USAA topped the list with a score of 82 percent, giving it a "good" rating–nine percentage points ahead of the other 13 insurance providers rated. A score of 85 percent and higher is rated "excellent."
This was the third survey in a row that the insurer earned the top spot, but it was down one point from 2008. (There was no survey in 2009.) USAA limits sales to past and present members of the U.S. military and their families.
Other insurers receiving "good" ratings were Liberty Mutual Insurance, Progressive and The Hartford.
Coming in at the bottom of the list was Nationwide Mutual Insurance, earning a "poor" rating.
USAA earned the highest ranking in the "enjoyable" category, while USAA and Liberty Mutual earned the highest marks in "meets needs" and "easy to work with."
Of all the insurers, Liberty Mutual made the largest improvement, Forrester noted, with a 15 percentage point increase over its 2008 rating. The insurer also had the biggest jump in "enjoyable," with a 23-point increase.
Seven insurers saw their score drop, with Nationwide experiencing the most significant drop of nine points.
The score for independent agents rose four points to 74 percent.
Overall, the insurance industry, compared to 13 other industries, scored "okay" with a median rating of 72 percent, just slightly behind investment firms. Retailers, hotels and parcel delivery-shipping firms were ahead of the insurance industry in the index.
But the property and casualty insurance industry led banks and was far ahead of health insurance plans, which was at the bottom of the list at "very poor."
Forrester noted that the results of this survey are important because a modest improvement in customer experience can total up to $298 million in annual revenues for a $10 billion insurance provider.
Bruce D. Temkin, vice president and principal analyst for customer experience, who writes the blog "Customer Experience Matters" (http://experiencematters.wordpress.com/), said many insurers are in what he feels is the early stage of dealing with customer experience.
Many believe they can improve the experience by concentrating on one area of marketing, but to be successful companies need to take a holistic approach, which is why Liberty Mutual has done such an impressive job of improving its standing, he observed.
For agents, the customer experience is tied to how well the carrier treats its customers, he noted, adding that when the carrier is not committed, it reflects on the agent.
"No one owns the complete experience, but at the end of the day there are a lot of interlocking pieces that influence the experience, and every party has a strong influence on the outcome of the customer's experience," observed Mr. Temkin.
Copies of the full report, which costs $499, can be purchased online from the Cambridge, Mass.-based research firm at www.forrester.com.
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