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News & Markets J.D. Power: Auto Insurance Satisfaction Reaches All-Time High


verall customer satisfaction with auto insurance companies has reached an all-time high, according to the Westlake Village, Calif.-based J.D. Power and Associates’ 2012 U.S. Auto Insurance Study. The satisfaction rate was driven primarily by increases in satisfaction with policy offerings, billing and payment practices, the study shows. The study measures customer satisfaction with auto insurance companies across five factors: interaction; price; policy offerings; billing and payment; and claims. Overall satisfaction with auto insurance companies is 804 (on a 1,000point scale), up 14 points from 2011. Satisfaction levels in 2012 are the highest since the study was launched in 2000, according to J.D. Power. Satisfaction increased in all factors in 2012, with significant improvements in

Customer Satisfaction Index Ranking California Region Wawanesa Automobile Club of Southern California (AAA) State Farm GEICO The Hartford Ameriprise Safeco California Average Mercury NCNU (AAA) Progressive Liberty Mutual Allstate Nationwide 21st Century Farmers Infinity P&C *USAA

823 807 806 801 798 792 786 785 780 779 773 770 764 761 757 754 705 912

*USAA is an insurance provider open only to U.S. military personnel and their families and therefore is not included in the rankings. ** Based on a 1,000-point scale 12 | INSURANCE JOURNAL-WEST REGION July 2, 2012

seven regions. policy offerings (+30 points) and inter Results by region are as follows: action (+19 points). California Region: Wawanesa Satisfaction with price is unchanged ranks highest among award-eligible from 2011. insurers in the region with a score “Although satisfaction with price of 823, followed by remains consis‘Although satisfaction Automobile Club of tent from 2011, Southern California auto insurance with price remains companies have consistent from 2011, (AAA) (807) and State (806). made great strides auto insurance com- Farm West Region: in all other areas,” panies have made State Farm (837) ranks stated Jeremy highest among awardBowler, senior great strides in all eligible insurers in the director of the other areas.’ region, and is the only insurance practice award-eligible insurer to perform above at J.D. Power and Associates. regional average. The study finds that 20 percent of customers have experienced an insurer- Central Region: Texas Farm Bureau (857) ranks highest among award-eligiinitiated rate increase from 2011, with ble insurers in the region, followed by 63 percent of these customers expeState Farm (832) and GEICO (830). riencing an increase of $50 or more. Southeast Region: Farm Bureau Satisfaction among customers whose Insurance - Tennessee (828) ranks highpremiums increase by at least $50 is est among award-eligible insurers in 735, compared with 797 among those the region, followed by North Carolina experiencing an increase of less than Farm Bureau (823) and State Farm (821). $50. North Central Region: Auto “Among customers whose insurers Owners Insurance and State Farm (in meet or exceed all their service expeca tie at 828 each) rank highest among tations, modest rate increases appear award-eligible insurers in the region, to be well tolerated, provided the rate followed by Erie Insurance (823). adjustment amounts to less than $50,” Northeast Region: Amica Mutual Bowler said. “However, larger rate (867) ranks highest among awardadjustments may trigger customers to eligible insurers in the Northeast consider shopping for a new insurer, region, followed by New York Central especially those customers who are Mutual (811) and GEICO (793). less engaged with their insurance com Mid-Atlantic Region: Erie pany.” Insurance (834) ranks highest among Discussing rate increases with cusaward-eligible insurers in the Midtomers and offering options may have Atlantic region, followed by State Farm a positive effect on satisfaction. Of auto (813). insurance customers receiving a rate Customer satisfaction varies from increase, 56 percent were not notified an average high of 814 in the Southeast prior to the renewal notice, among region to a low of 784 in the Northeast whom satisfaction is 746. Satisfaction region. among customers who were notified The 2012 U.S. Auto Insurance Study prior to a rate increase and had a disis based on nearly 35,000 responses cussion with their insurer is 807.    from auto insurance customers The study measures satisfaction between March and May. with auto insurance companies in

Agency Management Systems / Insurance Exchanges; Commercial Auto; Digital Product Guide  
Agency Management Systems / Insurance Exchanges; Commercial Auto; Digital Product Guide  

Agency Management Systems / Insurance Exchanges; Commercial Auto; Digital Product Guide