Customer Satisfaction Declines in Auto Insurance Industry, Survey Finds

According to JD Power’s Claims Satisfaction Survey, customer satisfaction with the auto insurance industry is declining despite the increasing importance of innovation and customer service.

According to JD Power, a 2022 study showed that satisfaction dropped 7 points on a 1,000-point scale to an average of 873 as customers lost patience with the billing process.

Mark Garrett, Director of Global Insurance Intelligence at JD Power, said:

“No one wants to wait 20 to 30 days to get your car back.
— Mark Garrett, Director, Global Insurance Intelligence, JD Power

Leading the list of factors contributing to dissatisfaction are the volume of vehicle crashes returning to pre-pandemic levels, record high repair costs, historic repair shop backlogs and limited availability of replacement parts.

But perhaps surprisingly, the study’s results could have been worse, Garrett said.
In fact, I expected even less satisfaction,” he said. “I thought the industry as a whole was going to drop and many operators would see his double-digit decline. I think that’s what happened.”

Amica Mutual ranked highest in overall customer satisfaction with a score of 903. NJM Insurance Co. (896) was second and Erie Insurance (893) was his third. Coming up behind were National General (838), Mercury (830) and Kemper (798).

Historically slow repair processes are cited as one of the most common reasons for dissatisfaction.

“No one wants to wait 20 to 30 days to get your car back,” says Garrett. “It’s incredibly inconvenient.”

Supply chain issues cited

This year, for the first time, a majority of customers cited supply chain issues, such as backlogs for parts and backlogs at repair shops, as reasons for delays in getting their vehicles back on the road. The average repair cycle time is almost 17 days, compared to a pre-pandemic average of around 12 days.

Customers with repair cycle times greater than 3 weeks had an overall average satisfaction score of 837. This score increases by 71 points to 908 if the customer is given an accurate time estimate upfront. “It’s important to show empathy throughout the process, especially for longer claims that may generate more effort for customers who have questions, need updates and are trying to determine their next steps. is,” the report said.

Of course, rising repair costs are another factor cited, forcing insurers to better manage expenses.

Focus on digital channels

“This brings focus to digital channels as an important tool for managing customer relationships effectively, but not all customers want to use such channels. Thirty-four percent say they prefer working with people to using digital contacts, and these customers are more satisfied than those who are equally satisfied with both human and digital means of communication. 31 points lower and a significantly worse claims experience.”

Using digital tools to deliver status updates increased overall satisfaction by 56 points, with users using text messaging being the most satisfied. However, using digital to report initial loss via the internet or mobile app lowers overall satisfaction by 4 percentage points.

Another common complaint about the auto insurance claim process is the need to repeatedly provide the same information to different people or entities at different points in the process. The overall satisfaction score is lowest when the customer interacts with three or more reps during the billing process (840), a 13 point drop for him from a year ago. The score is the highest (912) and remains stable year after year when insurers use technology to automatically approve and route claims.

When asked why Amica consistently ranks highest in car satisfaction surveys and other JD Power surveys, Garrett said he believes Amica has a culture dedicated to customer service.
Amica has been a long-time winner in almost all of our studies,” he said. I think it has to do with their customer service culture. has become part of the company’s DNA.

Doug Bailey is a journalist and freelance writer living outside Boston.he can be reached at [email protected].

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