Auto Satisfaction Surges as Customers Adopt Direct-to-Consumer Models, J.D. Power Finds

20th Anniversary Auto Insurance Study Identifies Key Drivers of Significant Change in Customer Experience

COSTA MESA, Calif.: 13 June 2019 — The last decade of seemingly non-stop direct-to-consumer advertising and heavy investment into digital self-service technologies have driven roughly one-fourth of auto insurance customers to adopt direct distribution models that bypass agents in favor of do-it-yourself tools. According to the J.D. Power 2019 U.S. Auto Insurance Study,SM that transition has helped overall customer satisfaction with auto insurance providers reach its highest level ever.

“Auto insurance customers have more access, control and visibility into the details of their policies, and that is translating into record high levels of customer satisfaction,” said Robert Lajdziak, Senior Consultant for Insurance Intelligence at J.D. Power. “As customers take greater control of their auto policies, it’s also becoming more important for insurers to offer superior digital experiences and easy access to account management features such as bill pay, policy information and an integrated experience for customers who bundle multiple policies.”

Following are some of the key findings of the 2019 study:

• Record-high satisfaction driven in part by direct service models: Overall customer satisfaction with U.S. auto insurers improves in 2019 and is now at a record-high level of 831 (on a 1,000-point scale). Within the total universe of auto insurance customers, the 23% of customers who use direct distribution models have the highest overall satisfaction.

• The more, the merrier: Satisfaction levels are significantly higher when auto insurance customers bundle their auto policy with additional policies, such as home and (837) than when they do not bundle (812). While, overall satisfaction scores, advocacy rates and likelihood-to-renew levels are all higher when customers bundle one or more insurance products with their auto policies, insurers have done a poor job at making the customer experience easier for bundlers.

• Average premium amount flat this year, which helps customer satisfaction: Customers say auto insurance premiums have leveled in 2019, following significant increases the previous two years. The tipping point is where customer satisfaction and retention start to become negatively affected by a price increase, is $100. The threshold for the likelihood to shop around at other insurance companies is lower, just $50.

• Attrition risk likely to rise: Price sensitivity peaked in 2010, shortly after the S&P 500 reached its lowest point following the Great Recession, when 87% of auto insurance said they would switch insurers for any amount of financial savings. In 2019, that number is 72%. With a possible market correction in sight, insurers will need to understand how to execute on the key performance indicators identified in the study that mitigate price sensitivity.

• A do-it-yourself attitude: Customers’ reliance on agents—feeling they are extremely important—has declined 33% over the past 20 years. Nearly one-fifth (17%) of customers with an agent say they have never met their agent in-person or over the phone.

“One of the reasons direct models are posting higher satisfaction scores is because the customer experience is centralized in the organization and therefore more consistently executed,” Lajdziak said.

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Study Rankings

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

California: Esurance Central: Shelter Florida: Mid-Atlantic: Erie Insurance New England: Amica Mutual New York: New York Central Mutual North Central: Westfield Northwest: PEMCO Insurance Southeast: Farm Bureau Insurance—Tennessee Southwest: : Texas Farm Bureau

The 2019 U.S. Auto Insurance Study, now in its 20th year, examines customer satisfaction in five factors (in order of importance): interaction; policy offerings; price; billing process and policy information; and claims. The study is based on responses from 42,759 auto insurance customers and was fielded from February through April 2019.

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

See the online press release at http://www.jdpower.com/pr-id/2019085.

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, South America, Asia Pacific and Europe.

Media Relations Contacts Geno Effler, J.D. Power; Costa Mesa, Calif.; 714-621-6224; [email protected] John Roderick; St. James, N.Y.; 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 2019 U.S. Auto Insurance StudySM Overall Customer Satisfaction Index Ranking Region JDPower.com Power Circle RatingsTM (Based on a 1,000-point scale) for consumers:

Esurance 847 Auto Club of Southern California Insurance Group 834 Ameriprise 830 Wawanesa 828 GEICO 825 824 Safeco 822 The Hartford 821 Progressive 821 California Average 817 CSAA Insurance Group 809 Allstate 808 808 Farmers 805 Mercury 805 Nationwide 780 Kemper 778

*USAA 884

Power Circle Ratings Legend Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Among the best Fred Loya Insurance, MAPFRE Insurance, MetLife and National General. State included in region is Better than most California. About average The rest Source: J.D. Power 2019 U.S. Auto Insurance 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 2019 U.S. Auto Insurance StudySM Overall Customer Satisfaction Index Ranking Central Region JDPower.com Power Circle RatingsTM (Based on a 1,000-point scale) for consumers:

Shelter 858 Auto-Owners Insurance 856 Allstate 844 GEICO 838 Auto Club of Southern California Insurance Group 837 Travelers 832 Central Average 832 State Farm 828 American Family 823 Progressive 823 Farm Bureau Mutual 822 Safeco 819 Farmers 817 Liberty Mutual 811 Nationwide 807

*USAA 907

Power Circle Ratings Legend Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Cincinnati Insurance, Among the best COUNTRY Financial, CSAA Insurance Group, Esurance and The Hartford. States included in region are Better than most Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma and South Dakota. About average The rest Source: J.D. Power 2019 U.S. Auto Insurance 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 2019 U.S. Auto Insurance StudySM Overall Customer Satisfaction Index Ranking Florida Region JDPower.com Power Circle RatingsTM (Based on a 1,000-point scale) for consumers:

Allstate 847

Esurance 843

State Farm 834

Florida Average 832

GEICO 827

Liberty Mutual 827

MetLife 820

Travelers 820

Auto-Owners Insurance 819

The Hartford 812

Progressive 809

Nationwide 805

Safeco 798

*USAA 898

Power Circle Ratings Legend Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore Among the best is not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Better than most Direct General, Farmers, Kemper, Mercury and National General. State included in region is Florida. About average The rest Source: J.D. Power 2019 U.S. Auto Insurance 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 2019 U.S. Auto Insurance StudySM Overall Customer Satisfaction Index Ranking Mid-Atlantic Region JDPower.com Power Circle RatingsTM (Based on a 1,000-point scale) for consumers:

Erie Insurance 852 GEICO 845 The Hartford 842 Mid-Atlantic Average 838 State Farm 834 Progressive 828 Farmers 826 Plymouth Rock Assurance 826 Nationwide 822 Travelers 821 CSAA Insurance Group 817 Liberty Mutual 817 Allstate 816

*USAA 898 **NJM Insurance Co. 861

Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. **NJM Insurance Co. is an insurance provider open only to New Jersey Business & Industry Association Members; employees of the state of New Jersey; employees of a New Jersey county, municipality or township; employees of a New Jersey public school; NJM’s previously insured drivers; Power Circle Ratings Legend and/or previous/current auto/homeowner policyholders, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Alfa Insurance, Ameriprise, Amica Mutual, Among the best Cincinnati Insurance, Esurance, MetLife, National General and Westfield. States included in region are Better than most Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia. About average The rest Source: J.D. Power 2019 U.S. Auto Insurance 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 2019 U.S. Auto Insurance StudySM Overall Customer Satisfaction Index Ranking New England Region JDPower.com Power Circle RatingsTM (Based on a 1,000-point scale) for consumers:

Amica Mutual 852 State Farm 844 GEICO 836 Allstate 830 Progressive 825 Nationwide 822 New England Average 822 The Hanover 817 Travelers 810 Liberty Mutual 808 MAPFRE Insurance 807 Arbella 802 Plymouth Rock Assurance 801 Safeco 801 Safety Insurance 797 MetLife 794

*USAA 898

Power Circle Ratings Legend Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore Among the best is not included in the rankings. States included in region are Connecticut, Maine, Massachusetts, New Better than most Hampshire, Rhode Island and Vermont. About average The rest Source: J.D. Power 2019 U.S. Auto Insurance 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 2019 U.S. Auto Insurance StudySM Overall Customer Satisfaction Index Ranking New York Region JDPower.com Power Circle RatingsTM (Based on a 1,000-point scale) for consumers:

New York Central Mutual 869

State Farm 845

Travelers 845

MetLife 836

Allstate 831

New York Average 829

GEICO 823

Nationwide 822

Liberty Mutual 819

Progressive 815

*USAA 884

Power Circle Ratings Legend Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Ameriprise, Among the best Amica Mutual, The Hanover, The Hartford, Kemper and National General. State included in region is New Better than most York. About average The rest Source: J.D. Power 2019 U.S. Auto Insurance 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 2019 U.S. Auto Insurance StudySM Overall Customer Satisfaction Index Ranking North Central Region JDPower.com Power Circle RatingsTM (Based on a 1,000-point scale) for consumers:

Westfield 855 IN Farm Bureau 854 Erie Insurance 852 COUNTRY Financial 846 State Farm 841 The Hartford 839 MI Farm Bureau 839 Auto-Owners Insurance 836 GEICO 836 Cincinnati Insurance 832 North Central Average 830 Nationwide 829 Grange Insurance 828 Progressive 828 Allstate 822 American Family 820 Esurance 818 Farmers 818 The Hanover 807 Travelers 803 Liberty Mutual 802 Automobile Club Group 801 MetLife 794 Safeco 788

*USAA 891

Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore Power Circle Ratings Legend is not included in the rankings. Included in the study but not ranked due to sample size are Alfa Insurance, Among the best Ameriprise and National General. States included in region are , , Michigan, and Better than most Wisconsin. About average The rest Source: J.D. Power 2019 U.S. Auto Insurance 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 2019 U.S. Auto Insurance StudySM Overall Customer Satisfaction Index Ranking Northwest Region JDPower.com Power Circle RatingsTM (Based on a 1,000-point scale) for consumers:

PEMCO Insurance 850

The Hartford 833

American Family 825

State Farm 820

Farmers 818

Allstate 816

Northwest Average 816

GEICO 813

Safeco 801

Progressive 797

Liberty Mutual 792

Nationwide 765

*USAA 894

Power Circle Ratings Legend Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Ameriprise, Among the best COUNTRY Financial, MAPFRE Insurance and National General. States included in region are Idaho, Montana, Better than most Oregon, Washington and Wyoming. About average The rest Source: J.D. Power 2019 U.S. Auto Insurance 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 2019 U.S. Auto Insurance StudySM Overall Customer Satisfaction Index Ranking Southeast Region JDPower.com Power Circle RatingsTM (Based on a 1,000-point scale) for consumers:

Farm Bureau Insurance - Tennessee 888 Erie Insurance 870 Alfa Insurance 855 NC Farm Bureau 855 State Farm 853 Auto-Owners Insurance 852 Southeast Average 841 GEICO 838 KY Farm Bureau 830 Safeco 829 Nationwide 828 Progressive 824 Travelers 822 National General 820 MetLife 814 Allstate 813 Liberty Mutual 809

*USAA 878

Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Ameriprise, Power Circle Ratings Legend Amica Mutual, Cincinnati Insurance, COUNTRY Financial, Direct General, Esurance, Grange Insurance, The Among the best Hanover, The Hartford, Kemper, Shelter and Westfield. States included in region are , , Better than most Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. About average The rest Source: J.D. Power 2019 U.S. Auto Insurance 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 2019 U.S. Auto Insurance StudySM Overall Customer Satisfaction Index Ranking Southwest Region JDPower.com Power Circle RatingsTM (Based on a 1,000-point scale) for consumers:

The Hartford 832

State Farm 831

Allstate 826

American Family 826

Southwest Average 823

Safeco 821

CSAA Insurance Group 818

GEICO 818

Liberty Mutual 813

Farmers 812

Progressive 807

Travelers 789

Nationwide 775

*USAA 887

Power Circle Ratings Legend Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Ameriprise, Among the best Amica Mutual, Cincinnati Insurance, Esurance, Farm Bureau Mutual, Fred Loya Insurance, Kemper and Better than most MetLife. States included in region are , , , and Utah. About average The rest Source: J.D. Power 2019 U.S. Auto Insurance 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 2019 U.S. Auto Insurance StudySM Overall Customer Satisfaction Index Ranking Texas Region JDPower.com Power Circle RatingsTM (Based on a 1,000-point scale) for consumers:

TX Farm Bureau 857

Allstate 836

GEICO 836

State Farm 835

Texas Average 835

Farmers 834

Auto Club of Southern California Insurance Group 831

Nationwide 829

Progressive 816

Liberty Mutual 802

*USAA 894

Power Circle Ratings Legend Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Ameriprise, Among the best Amica Mutual, Direct General, Esurance, Fred Loya Insurance, Germania Insurance, Kemper and MetLife. Better than most State included in region is Texas. About average The rest Source: J.D. Power 2019 U.S. Auto Insurance 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.