NU Online News Service, Jan. 31, 12:00 p.m. EST
Satisfaction with auto claims was virtually unchanged on a quarter-to-quarter basis despite the increase in insurance claims due to weather related damage during the fourth quarter of this year, according to a consumer survey.
The Westlake Village, Calif.-based marketing information services company J.D. Power and Associates, a subsidiary of McGraw-Hill Companies, released its Auto Claims Satisfaction Study—Wave 1 today, saying customer satisfaction with auto insurance claims scored an 855 on a 1,000 point scale. This compares to a score of 854 that the industry scored during the third quarter of 2011 and 848 for the second quarter.
The survey is based on 3,500 responses from auto insurance customers who filed claims within the past six months. The survey was conducted between November and December of 2011.
The score was notable because the volume of repairs increased during the fourth quarter and took an average of almost one day longer to complete or total of 8.5 days.
"Auto body shops handled the increased repair volume well, and insurance companies did a good job of keeping their customers informed, which helped manage customer expectations," said Jeremy Bowler, senior director of the insurance practice at J.D. Power.
He called communication with customers "vital" to customer satisfaction during the claims process. Those customers who were informed more often about the claims process tended to be more satisfied, Bowler said.
J.D. Power says the study found more insurers are encouraging customers to contact a call center instead of their independent agent when filing a first notice of loss.
Customer satisfaction is "steadily improving" with the direct method, from 849 in the second quarter of 2011 to 862 in the fourth quarter. However, customer satisfaction with filing through their agent averaged an 886 during the fourth quarter, up from 879 in the second quarter.
"Not all customers want to work with an agent," said Bowler. "Some just want to file their claim in the quickest and easiest way possible, whether that be through a call center or online. There still is a significant share of customers who prefer the personal interaction they get with an agent because they value working directly with a person they know."
Of the 27 companies that appear in the survey the highest ranked were Auto-Owners Insurance, New Jersey Manufacturers Insurance Co. and USAA, all of which were rated among the best.
For the overall score, only Auto-Owners Insurance results are compiled with the other 24 other companies because it is opened to the public.
NJM is limited to New Jersey Business & Industry Association members and employees of New Jersey state government. USAA is limited to military personnel and their family.
Those companies that ranked better than most in claims satisfaction were:
• American Family
• Amica Mutual
• State Farm
• TheHartford
Bowler told National Underwriter that beginning this year J.D. Power would be conducting quarterly surveys to capture more customer satisfaction information targeted at the auto insurance industry. The satisfaction study also measures first notice of loss, service interaction, appraisal, repair process, rental car experience and settlement.
The surveys would not replace the yearly overall customer satisfaction survey, he said.
He said this quarter's report was notable in customer satisfaction with dealing directly with the carrier has improved and drawn closer to satisfaction with dealing with an agent. Bowler could not explain why the increase took place, but ventured to say that the utilization of technology could be playing a role in that improvement.
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