Things are looking up when it comes to the way millennials feel about the auto claims process. In the latest J.D. Power 2015 U.S. Auto Claims Satisfaction Study, claimants born between 1977–1994 (Gen Y) showed some improvement in terms of overall satisfaction with the claims-filing process, moving from 819 in 2014 to 827 in 2015 based on a 1,000-point scale. The number of Gen Y claimants also grew from 28% in 2014 to 33% in 2015.
However, Gen Y claimants are still less satisfied with the claims process than other age groups. Gen X customers (born 1965–1976), who comprise 20% of claimants, jumped from 847 last year to 855 this year. Pre-boomers (born before 1946) experienced a drop in satisfaction, falling 17 points from 911 in 2014 to 894 in 2015.
Improvements among Gen Y
Mark Garrett, director of insurance analytics at J.D. Power, says that the improvements among Gen Y customers especially pertained to first notice of loss (FNOL, +7), settlement (+8), repair process (+14) and the appraisal (+19). "Some common themes where we noticed improvements were in explaining the claims process, being kept informed, and the speed of the settlement and repair work," Garrett explains. "Some new questions we added showed that technology adoption during the claim is much higher among Gen Y. For example, 42% of Gen Y received electronic updates during the claim and provided higher satisfaction than those who did not use technology such as boomers, who have 34% usage."
Auto-Owners Insurance ranked the highest in the survey, with a score of 893— a jump of 14 points from 2014. Amica Mutual placed second with a score of 885.
Overall, customer satisfaction with the auto claims process remained a steady 857, the same as in 2014. Customers whose cars are a total loss accounted for 17% of those who file a claim and their satisfaction drops to 811—the lowest score since 2011.
Among the reasons for their dissatisfaction are the length of time it takes to be notified of how much the insurer will pay and when the insured actually receives payment. "Our data shows that payment is not typically received until 19.5 days from FNOL, compared to 12.5 if a customer is paid for a repairable claim," Garrett says.
The 2015 U.S. Auto Claims Satisfaction Study was based on responses from more than 11,000 policyholders who had settled a claim within the previous six months prior to taking the survey between November 2014 and September 2015.
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