J.D. Power Reports: Agents Who Focus Only on Homeowners Insurance Customers Are Missing A Long-Term Opportunity with Renter Customers as Their Needs Grow

WESTLAKE VILLAGE, Calif., Sept. 30, 2013 /PRNewswire/ -- Insurance agents who only focus on homeowners insurance customers are missing a golden opportunity to build long-term relationships with renter customers as their insurance needs grow due to life or circumstance changes—such as having a family or purchasing a home or additional car—according to the J.D. Power 2013 U.S. Household Insurance and Bundling StudySM released today.

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KEY FINDINGS

  • While 25 percent of consumers rent their primary residence, 46 percent of renters are uninsured.
  • Satisfaction with insurers is higher among renters than among homeowners (809 vs. 787, respectively, on a 1,000-point scale).
  • Price is the leading driver of the satisfaction gap: price satisfaction is a significant 45 points higher among renters than among homeowners.
  • Renters place more importance on website (22%) and assisted online (11%) interaction channels than do homeowners, which is influenced by the younger customer base in the renter insurance market.
  • State Farm captures the largest share of the renter insurance market (26%), followed by Allstate (12%) and USAA (10%).
  • Customer retention rates with their current insurer are higher among renters who bundle an auto policy (91%) compared to renters who do not bundle an auto policy (67%).

"Many insurance agents focus their time selling high-dollar products, such as auto and homeowners, with higher commissions instead of the average $200 per year renters policy," said Jeremy Bowler, senior director of the global insurance practice at J.D. Power. "This is shortsighted because agents who satisfy the large renter population today are more likely to retain and service their growing household insurance needs over time."


Rankings



Overall Customer Satisfaction Index Scores


J.D. Power.com Power Circle Ratings

(Based on a 1,000-point scale)


For Consumers




Homeowners Segment



Amica Mutual

842

5

State Farm

813

4

Auto-Owners Insurance

812

4

Erie Insurance

811

4

Automobile Club of Southern California

808

4

Encompass

798

4

American Family

797

4

Progressive

796

4

COUNTRY

795

3

Allstate

789

3

GEICO

789

3

The Hartford

787

3

Homeowners Average

787

3

NCNU Insurance Exchange

786

3

Nationwide

780

3

MetLife

778

3

Safeco

778

3

Automobile Club Group

776

3

CHUBB

768

2

The Hanover

766

2

Farmers

763

2

Liberty Mutual

762

2

Travelers

756

2

__________________________



USAA*

894

5




*USAA is an insurance provider open only to U.S. military personnel and their families and therefore is not included in the rankings.


Homeowners Segment: Included in the study but not award-eligible due to localized availability and/or not meeting minimum sample requirements are Alfa Insurance, Allied, Cincinnati Insurance, Fireman's Fund, Homesite, Mercury, North Carolina Farm Bureau, Shelter and Tennessee Farm Bureau.



Renters Segment

Nationwide

823

5

American Family

817

5

Automobile Club of Southern California

814

3

State Farm

811

3

Renters Average

809

3

Allstate

807

3

Progressive

799

3

GEICO

794

2

Liberty Mutual

773

2

Farmers

768

2

Travelers

752

2

__________________________



USAA*

901

5




*USAA is an insurance provider open only to U.S. military personnel and their families and therefore is not included in the rankings.


Renters Segment: Included in the study but not ranked due to not meeting minimum sample requirements are Amica Mutual, Automobile Club Group, Erie Insurance, MetLife, NCNU Insurance Exchange, Safeco and The Hartford.

Power Circle Ratings Legend
5 – Among the best
4 – Better than most
3 – About average
2 – The rest

The 2013 U.S. Household Insurance and Bundling Study is based on 21,167 responses from customers who may have the following insurance product lines: homeowners; renters; individual life insurance; recreational vehicle; personal liability umbrella; and secondary residence. The study was fielded from June 10, 2013, through July 12, 2013. The study examines overall customer satisfaction in each of these product lines; however, the study only ranks performance in two personal property insurance segments—homeowners and renters. Both index scores are comprised of five factors: interaction; policy offerings; price; billing and payment; and claims.

Media Relations Contacts
Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; 818-598-1115; jperlman@brandwarepr.com; John Tews; Troy, Mich.; 248-680-6218; media.relations@jdpa.com
About J.D. Power and Advertising/Promotional Rules www.jdpower.com/corporate
About McGraw Hill Financial www.mhfi.com

SOURCE J.D. Power and Associates



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