Auto Insurance Websites Surpass Agents in Importance to Customer Interaction, J.D. Power Finds

Customer Experience Increasingly Being Driven by Digital Interactions with Insurers

TROY, Mich.: 11 June 2020 — Remember all the talk that digital transformation would disrupt the auto insurance industry? Well, it’s real. According to the J.D. Power 2020 U.S. Auto Insurance Study,SM released today, insurance company websites—for the first time in the study’s 21-year history—officially surpass agents in terms of importance to client interaction and service by providing higher customer satisfaction.

“We’ve seen this trend developing for several years, but this is the first time that the digital channel has become the preferred means of interacting with auto insurers, exceeding one-on-one communication with agents,” said Robert Lajdziak, senior consultant for insurance intelligence at J.D. Power. “This has huge implications for the industry because it puts the focus squarely on digital investment to notably expand creating seamless customer touch points. It’s an area in which the major national carriers excel, versus hyper-local, albeit knowledgeable, agent networks.”

Following are some of the key findings of the 2020 study:

• Digital investments pay dividends: Customer experience with auto insurer websites contributes more to satisfaction than agents, accounting for 34% of an insurer’s total interaction score. That’s one percentage point higher than in the agent channel, which accounts for 33% of total interaction satisfaction. This trend toward increased reliance on the digital channel and decreased reliance on the agent channel has been building steadily for more than a decade.

• Record high satisfaction driven in part by digital: Overall customer satisfaction with auto insurers improves in 2020 to a record high of 835 (on a 1,000-point scale). National carriers such as GEICO, State Farm and Allstate have earned some of the most significant gains, together ranking highest in six of the 11 regions in the study, aided by the growth of their digital channels.

• Trust is critical, but insurers have work to do: There is a strong correlation between scores for trust and those for overall satisfaction. On average, a one-point increase in trust (on a 5-point scale) would correlate with a 118-point increase in overall satisfaction. Despite the importance of trust, only 42% of all auto insurance customers say they “strongly agree” that they trust their insurer. By fulfilling service expectations and putting customers’ interests first, among other customer-centric initiatives, insurers can succeed in this critical-to-retention metric.

• Loyalty heavily influenced by claim history: Customers are least likely to renew their policies when part of an insurance claim is denied. Conversely, when customers have experienced a claim that was fully approved and settled, satisfaction is significantly higher and generates the greatest likelihood of renewal. What’s more, those customers who experienced sub-optimal claim outcomes and remained with their carrier were more diligent about understanding their policy and what it covers going forward.

Following are the highest-ranking auto insurance brands by region:

California: Wawanesa Central: Auto-Owners Insurance Florida: Allstate

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Mid-Atlantic: State Farm New England: Amica Mutual New York: State Farm North Central: GEICO Northwest: GEICO Southeast: Farm Bureau Insurance—Tennessee Southwest: American Family and GEICO (in a tie) Texas: Texas Farm Bureau

The 2020 U.S. Auto Insurance Study, now in its 21st year, examines customer satisfaction in five factors (in alphabetical order): billing process and policy information; claims; interaction; policy offerings; and price. The study is based on responses from 40,123 auto insurance customers and was fielded in February- March 2020.

For more information about the U.S. Auto Insurance Study, visit https://www.jdpower.com/business/resource/jd-power-us-auto-insurance-satisfaction-study.

To view the online press release, please visit http://www.jdpower.com/pr-id/2020065.

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, Asia Pacific and Europe.

Media Relations Contacts Geno Effler, J.D. Power; Costa Mesa, Calif.; 714-621-6224; [email protected] John Roderick; Huntington, NY.; 631-584-2200; [email protected]

About J.D. Power and Advertising/Promotional Rules www.jdpower.com/business/about-us/press- release-info

# # # NOTE: Eleven charts follow.

Year / Project / Study Name J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) California

Wawanesa 853

Auto Club of Southern California Insurance Group 848

State Farm 836

Ameriprise 834

GEICO 828

Esurance 825

Progressive 823

Region Average 821

Allstate 819

CSAA Insurance Group 810

Safeco 807

Farmers 801

Nationwide 797

Mercury 787

Liberty Mutual 786

Kemper 784

USAA^ 891

Note: ^Brand is not rank eligible because it does not meet study award criteria. Source: J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) Central

Auto-Owners Insurance 868

GEICO 855

Shelter 855

Progressive 849

State Farm 849

Region Average 843

Liberty Mutual 842

Allstate 832

Farm Bureau Mutual 828

Travelers 828

Farmers 827

Auto Club of Southern California Insurance Group 825

Nationwide 815

American Family 814

Safeco 812

USAA^ 905

Note: ^Brand is not rank eligible because it does not meet study award criteria; Central includes Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota. Source: J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) Florida

Allstate 851

GEICO 846

Automobile Club Group 839

Liberty Mutual 837

Region Average 836

Progressive 834

Esurance 830

State Farm 826

The Hartford 826

Auto-Owners Insurance 821

MetLife 821

Travelers 810

Safeco 780

USAA^ 889

Note: ^Brand is not rank eligible because it does not meet study award criteria. Source: J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) Mid-Atlantic

State Farm 855

Erie Insurance 850

NJM Insurance Co. 847

GEICO 841

Region Average 840

Travelers 836

Nationwide 835

MetLife 831

CSAA Insurance Group 829

Progressive 828

Plymouth Rock Assurance 827

Farmers 826

The Hartford 824

Liberty Mutual 816

Allstate 812

USAA^ 890

Note: ^Brand is not rank eligible because it does not meet study award criteria; Mid-Atlantic includes Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia. Source: J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) New England

Amica Mutual 863

State Farm 855

GEICO 841

Region Average 821

Progressive 819

The Hanover 816

Arbella 815

Liberty Mutual 813

Plymouth Rock Assurance 808

Travelers 808

Allstate 807

MetLife 807

Safety Insurance 787

MAPFRE Insurance 786

USAA^ 895

Note: ^Brand is not rank eligible because it does not meet study award criteria; New England includes Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. Source: J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) New York

State Farm 851

GEICO 837

New York Central Mutual 837

Region Average 836

Travelers 835

Allstate 833

Liberty Mutual 832

MetLife 832

Nationwide 825

Progressive 825

USAA^ 884

Note: ^Brand is not rank eligible because it does not meet study award criteria. Source: J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) North Central GEICO 851 Indiana Farm Bureau 849 Erie Insurance 846 Auto-Owners Insurance 845 COUNTRY Financial 840 Westfield 836 Grange Insurance 832 Farmers 831 Allstate 830 Region Average 830 State Farm 829 Nationwide 828 Travelers 828 American Family 827 Progressive 824 Esurance 820 Safeco 819 Liberty Mutual 816 Automobile Club Group 809 The Hanover 808 Michigan Farm Bureau 800

USAA^ 897

Note: ^Brand is not rank eligible because it does not meet study award criteria; North Central includes Illinois, Indiana, Michigan, Ohio and Wisconsin. Source: J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) Northwest

GEICO 834

PEMCO Insurance 827

Region Average 822

Progressive 821

The Hartford 818

Liberty Mutual 817

Safeco 815

State Farm 814

Allstate 810

Farmers 810

Travelers 806

American Family 785

USAA^ 883

Note: ^Brand is not rank eligible because it does not meet study award criteria; Northwest includes Idaho, Montana, Oregon, Washington and Wyoming. Source: J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) Southeast Farm Bureau Insurance - Tennessee 891

Erie Insurance 871

Alfa Insurance 858

GEICO 857

Auto-Owners Insurance 854

North Carolina Farm Bureau 854

Kentucky Farm Bureau 851

Region Average 849

Progressive 848

Allstate 846

Safeco 837

State Farm 835

Farmers 832

National General 827

Nationwide 825

Travelers 823

Liberty Mutual 822

MetLife 821

USAA^ 909

Note: ^Brand is not rank eligible because it does not meet study award criteria; Southeast includes Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. Source: J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) Southwest

American Family 834

GEICO 834

Allstate 830

The Hartford 829

Region Average 827

State Farm 826

Farmers 823

Liberty Mutual 816

Safeco 810

CSAA Insurance Group 809

Travelers 808

Progressive 803

Nationwide 786

USAA^ 876

Note: ^Brand is not rank eligible because it does not meet study award criteria; Southwest includes Arizona, Colorado, Nevada, New Mexico and Utah. Source: J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.

Year / Project / Study Name J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Overall Customer Satisfaction Index Ranking (Based on a 1,000-point scale) Texas

Texas Farm Bureau 866

Progressive 848

GEICO 846

State Farm 844

Region Average 842

Liberty Mutual 837

Allstate 832

Nationwide 820

Farmers 812

Auto Club of Southern California Insurance Group 803

USAA^ 878

Note: ^Brand is not rank eligible because it does not meet study award criteria. Source: J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in this release or J.D. Power survey results without the express prior written consent of J.D. Power.