2014 Property Claims Satisfaction Study
2/28/2014
J.D. Power Reports:
Perlman; Brandware Public Relations; Woodland Hills, Calif.; 818-317-3070; jperlman@brandwarepr.com
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Homeowner Satisfaction with Property Claims Improves for the Second Consecutive Year
Amica Mutual Ranks Highest in Overall Satisfaction among Homeowners Insurance Claimants
For Third Consecutive Year
WESTLAKE VILLAGE, Calif.: 28 February 2014
-- Overall satisfaction among homeowners who filed a property claim
improves for the second consecutive year, according to the J.D. Power
2014 Property Claims Satisfaction StudySM released today.
-- Overall satisfaction among homeowners who filed a property claim
improves for the second consecutive year, according to the J.D. Power
2014 Property Claims Satisfaction StudySM released today.
While
it has been more than 16 months since Superstorm Sandy hit the
Northeast, its effects are still being felt in the insurance industry,
where customers are expressing their relative dissatisfaction with the
claims process. Satisfaction among those who filed a claim for damage
caused by Superstorm Sandy averages just 830 in 2014, down from 846
among Sandy-related claimants surveyed shortly after the storm. Overall,
however, satisfaction among homeowners insurance customers who filed a
property claim between April 2012 and January 2014 averages 840 (on a
1,000-point scale)--up from 836 in the 2013 study.
it has been more than 16 months since Superstorm Sandy hit the
Northeast, its effects are still being felt in the insurance industry,
where customers are expressing their relative dissatisfaction with the
claims process. Satisfaction among those who filed a claim for damage
caused by Superstorm Sandy averages just 830 in 2014, down from 846
among Sandy-related claimants surveyed shortly after the storm. Overall,
however, satisfaction among homeowners insurance customers who filed a
property claim between April 2012 and January 2014 averages 840 (on a
1,000-point scale)--up from 836 in the 2013 study.
Compared
with 2013, research findings in 2014 show that homeowners insurance
customers who filed a non-catastrophic claim in the past year more often
received a thorough explanation of their coverage when first reporting
their loss; were more promptly notified of what damages were covered;
and received their settlement nearly four days faster.
with 2013, research findings in 2014 show that homeowners insurance
customers who filed a non-catastrophic claim in the past year more often
received a thorough explanation of their coverage when first reporting
their loss; were more promptly notified of what damages were covered;
and received their settlement nearly four days faster.
"Starting
at the time of first notice of loss, it is crucial for insurers to keep
claimants informed of their claim, the estimate of damages, the
settlement amount, when work will begin and when it will be completed,"
said Jeremy Bowler, senior director of the insurance practice at J.D.
Power. "When major storms hit and insurers have to rely on third parties
to assist in managing the large number of claims, service levels often
deteriorate fast as each insurer has their own processes and approval
requirements. This can sometimes lead to significantly extended claim
cycle times."
at the time of first notice of loss, it is crucial for insurers to keep
claimants informed of their claim, the estimate of damages, the
settlement amount, when work will begin and when it will be completed,"
said Jeremy Bowler, senior director of the insurance practice at J.D.
Power. "When major storms hit and insurers have to rely on third parties
to assist in managing the large number of claims, service levels often
deteriorate fast as each insurer has their own processes and approval
requirements. This can sometimes lead to significantly extended claim
cycle times."
The study finds that 15 percent
of all claims reported involved a third-party damage inspection, down 5
percentage points from the 2013 study.
of all claims reported involved a third-party damage inspection, down 5
percentage points from the 2013 study.
KEY FINDINGS
-
Overall satisfaction with non-catastrophic claims has increased by 11
index points in 2014, compared with 2013 (843 vs. 832, respectively).
Overall satisfaction with non-catastrophic claims has increased by 11
index points in 2014, compared with 2013 (843 vs. 832, respectively).
-
Overall satisfaction improves in four of the five factors year over
year, while satisfaction with first notice of loss is the same as in
2013. The greatest increase in satisfaction is in the settlement factor
(+4 points).
Overall satisfaction improves in four of the five factors year over
year, while satisfaction with first notice of loss is the same as in
2013. The greatest increase in satisfaction is in the settlement factor
(+4 points).
- When insurance companies effectively
communicate with claimants, those claimants are less likely to escalate
their claim to a supervisor. When a supervisor becomes involved, overall
customer satisfaction drops by more than 160 index points.
communicate with claimants, those claimants are less likely to escalate
their claim to a supervisor. When a supervisor becomes involved, overall
customer satisfaction drops by more than 160 index points.
-
Timeliness of the communication also plays a role in whether or not a
claim gets escalated. For example, if the settlement terms are provided
to the claimant within one day of first notice of loss, only 6 percent
of customers escalate the claim. The rate of escalation increases to 13
percent if the claimant is informed within one week and increases to 18
percent if it takes more than one week.
Timeliness of the communication also plays a role in whether or not a
claim gets escalated. For example, if the settlement terms are provided
to the claimant within one day of first notice of loss, only 6 percent
of customers escalate the claim. The rate of escalation increases to 13
percent if the claimant is informed within one week and increases to 18
percent if it takes more than one week.
- Nearly one-fourth (23%) of Gen Y claimants escalate their claim to a supervisor, compared with 8 percent of Boomers.
Highest-Ranked Insurance Companies
Amica
Mutual ranks highest in overall satisfaction with the homeowners
insurance claims experience for the third consecutive year, achieving a
score of 898. Amica Mutual performs particularly well in all five
factors. Erie Insurance ranks second with a score of 877, followed by
Nationwide with 858. USAA also achieves high levels of customer
satisfaction, although the insurer is not included in the rankings due
to the closed nature of its membership.
Mutual ranks highest in overall satisfaction with the homeowners
insurance claims experience for the third consecutive year, achieving a
score of 898. Amica Mutual performs particularly well in all five
factors. Erie Insurance ranks second with a score of 877, followed by
Nationwide with 858. USAA also achieves high levels of customer
satisfaction, although the insurer is not included in the rankings due
to the closed nature of its membership.
The
study, now in its seventh year, measures satisfaction with the property
claims experience among insurance customers who filed a claim for
damages covered under their homeowners' policy by examining five
factors: settlement; first notice of loss; estimation process; service
interaction; and repair process.
study, now in its seventh year, measures satisfaction with the property
claims experience among insurance customers who filed a claim for
damages covered under their homeowners' policy by examining five
factors: settlement; first notice of loss; estimation process; service
interaction; and repair process.
The 2014
Property Claims Satisfaction Study is based on more than 5,500 responses
from homeowners insurance customers who filed a property claim between
April 2012 and January 2014.
Property Claims Satisfaction Study is based on more than 5,500 responses
from homeowners insurance customers who filed a property claim between
April 2012 and January 2014.
Media Relations Contacts
JeffPerlman; Brandware Public Relations; Woodland Hills, Calif.; 818-317-3070; jperlman@brandwarepr.com
John Tews; Troy, Mich.; 248-680-6218; media.relations@jdpa.com
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