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 2011's fourth quarter, according to a consumer survey.
The Westlake Village, Calif.-based marketing information services company J.D. Power and Associates, a subsidiary of McGraw-Hill Co., released its "Auto Claims Satisfaction Study—Wave 1" on Jan. 31, 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, for a 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," Jeremy Bowler, senior director of the insurance practice at J.D. Power, tells NU.
Bowler calls 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, he adds.
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 a score of 849 in the second quarter of 2011 to 862 in the fourth quarter. Customer satisfaction with filing through their agent also increased, averaging a score of 886 during the fourth quarter, up from 879 in the second quarter.
Of the 27 companies that appear in the survey, the highest ranked were Auto-Owners Insurance, New Jersey Manufacturers Insurance Co. (NJMI) 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 companies because it is open to the public, unlike NJMI and USAA.
Those companies that ranked better than most in claims satisfaction were:
- American Family
- Amica Mutual
- State Farm
- The Hartford
Bowler tells NU that beginning this year, J.D. Power will be conducting quarterly surveys to capture more customer-satisfaction information targeted at the auto-insurance industry. The existing satisfaction study also measures first notice of loss, service interaction, appraisal, repair process, rental-car experience and settlement.
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