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Increased Insurance Prices Drive…

Increased Insurance Prices Drive Down Customer Satisfaction

 

Overall customer satisfaction for auto insurers declined industry wide due to the negative perception of price increases, according to the J.D. Power 2016 U.S. Auto Insurance Study.

Measured on a 1,000-point scale, the study examined customer satisfaction in five areas: interaction; policy offerings; price; billing process and policy information; and claims.

Overall satisfaction among the 17 largest insurers was driven down by a decrease in price-satisfaction from 2015. The perception among some customers was that they saw an increase in price despite the lack of a specific incident or life event that could cause a price increase.

However, the study found that satisfaction increased among smaller insurers dues to higher satisfaction with price over large insurers.

“Price perception among customers of smaller insurers is likely influenced by the fact that they frequently select their insurer with the help of an independent agent,” said Greg Hoeg, vice president of the U.S. insurance operations at J.D. Power. “Smaller insurers benefit from the personal interactions provided by their agency force, including their ability to educate customers about the value their policy provides.”

Another customer satisfaction issue was with interaction and policy offerings. Customers were less satisfied with call center representatives and the local agent. However, online interactions improved all elements of the customer experience.

 

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