Report: Consumers reasonably satisfied with P&C insurance; health, not so much

Unhappy with your overall insurance coverage? So are many consumers, according to a new report by the American Customer Satisfaction Index (ACSI), released on Nov. 18.

The ACSI Finance and Insurance Report 2014 covers customer satisfaction with banks, health insurance, property and casualty insurance, life insurance, credit unions and online brokerages.

Satisfaction scores for both P&C and life insurance slipped this year. P&C dropped by 2.5% to 79, while life insurance dropped 3.6% to 80. Customer satisfaction with their auto insurance rated a score of 78, but homeowners only rated a 72. The most satisfied customers are those with multiple policies from the same insurer, the report notes, with a score of 80.

ACSI is a national economic indicator of customer evaluations of the quality of products and services available to household consumers in the United States. The results for the insurance and finance industries are released annually, with all measures reported on a scale of 0 to 100.

P&C insurers rank highly in overall customer service: The report found that agents and other staff are courteous and helpful with claims-handling (88) as well as policy purchase, renewals or inquiries (86). Customers also reported that insurers are doing a better job than they were a year ago at timely claims processing, with a score of 86, but other areas, including billing (84), range of coverage options (83) and websites (81), have dropped slightly.

The availability of policy discounts and rewards received the lowest rating (unchanged from 2013 at 77), showing that consumers are still price-sensitive when it comes to the overall cost of their P&C policies.

Life insurance scores drop

Customer satisfaction with life insurance dropped from a record-high ACSI score a year ago, falling 3.6% to 80, according to the report. Customers agreed that life insurers approve policies for customers efficiently, earning them a score of 86, and agents and other staff were courteous and helpful, resulting in a score of 84. The overall customer experience declined from a year ago, however. Life insurance company customers were most dissatisfied with the availability and range of discounts, including health rewards and discounts for combining different types of policies, giving them a score of 74.

Health insurance satisfaction drops sharply

After four years of holding steady, the ACSI report says, customer satisfaction with health insurance fell 4.1% to 70, the lowest level for the category since 2005. The report notes that historically, health insurance ranks lower in customer satisfaction than other types of insurance due to high premiums, deductibles and copays, as well as more complex and frequently used claims processes.

According to the report, higher costs, especially for group policies provided through employers, have contributed to the decline in satisfaction rating; so far, the impact of the Affordable Care Act on customer satisfaction is uncertain. Consumers rated individual policies the same as last year, with a score of 74; however, satisfaction with group policies—the most prevalent in the industry—declined significantly, from 72 to 67.

The report notes that respondents said health insurance companies do not offer an outstanding experience in any area, but they do score well on providing access to primary care (79) and specialty care and hospital services (77). Customers are most dissatisfied with call center operations—which now rank as the “least appealing” part of the policyholder experience, with a score of 68.

The ACSI Finance and Insurance Report 2014 is available on the ACSI website.