Customer satisfaction currently high in auto insurance industry

On Behalf of | Jun 27, 2018 | Insurance Law

Many things can impact an auto insurance company’s long-term well-being. This includes how happy it’s customers are with it and how customers feel about the services it provides. So, customer satisfaction is very impactful for auto insurers.

According to a recent J.D. Power survey, such satisfaction is currently at historically high levels. The survey was conducted earlier this year. It polled over 44,000 auto insurance customers. These people were asked questions aimed at gauging customer satisfaction in five areas:

  • Billing process and policy information
  • Claims
  • Interaction
  • Policy offerings
  • Price

The findings were then used to give the industry a customer satisfaction score. The score is out of 1,000. The industry received a score of 826 in the recent report. This score is a record high.

There were improvements in satisfaction in all five of the above-mentioned areas. The two areas the industry saw the biggest increases in were billing process and policy information and policy offerings.

One thing J.D. Power postulates has been a factor in the recent rise in satisfaction is increased use by insurers of digital interaction options for customers.

In your opinion, what are biggest opportunities and challenges for auto insurers when it comes to customer satisfaction these days? What do you think will be most important for insurers when it comes to keeping high levels of customer satisfaction in upcoming years?

Given the important role customer satisfaction plays, it is something it is critical for insurers to give careful thought to when interacting with customers. This isn’t just the case when things are going well with customers. It also is when difficulties arise, such as disputes with customers over claims issues. How claims disputes are resolved can have major impacts on an insurer’s relationships with its customers.