Auto Insurance Satisfaction Surges As Customers Adopt Direct-To-Consumer Models, J.D
Total Page：16
File Type：pdf, Size：1020Kb
Auto Insurance 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 life insurance (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. jdpower.com/business Study Rankings Following are the highest-ranked auto insurance brands by region: California: Esurance Central: Shelter Florida: Allstate 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: The Hartford Texas: 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 California 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 State Farm 824 Safeco 822 The Hartford 821 Progressive 821 California Average 817 CSAA Insurance Group 809 Allstate 808 Liberty Mutual 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