COSTA MESA, Calif., Oct. 24, 2019 /PRNewswire/ -- Even as drivers continue to log a record number of miles behind the wheel and rack up ever-higher auto insurance claim totals, insurance carriers are rising to the challenge by delivering the highest levels of customer satisfaction ever catalogued by the J.D. Power U.S. Auto Claims Satisfaction Study.SM The 2019 study, released today, finds that customer satisfaction with the auto insurance claim process has increased year over year across every factor measured.
"The investment is paying off," said David Pieffer, Vice President, J.D. Power Property & Casualty Insurance Intelligence. "The investments made by insurers in claim digitization and internal process improvements are resulting in shorter cycle times and an improved overall claim experience. Despite this strong performance, there is still some room for improvement, particularly in the area of helping claimants feel more at ease during the first notice of loss."
Following are key findings of the 2019 study:
Record-high customer satisfaction with auto claims: Overall satisfaction with the auto insurance claim process increases to a record-high 868 (on a 1,000-point scale), up 7 points from last year's study. The performance improvement is driven by an increase in performance across every factor measured in the study: first notice of loss; claim servicing; estimation process; repair process; rental experience; and settlement.
Cycle time improves by one-half day: The amount of time it takes from the first notice of loss to the return of the vehicle to the customer has been cut from an average of 13.5 days in 2018 to 12.9 days in 2019 for repairable vehicles.
Room to improve on helping claimants feel at ease: The single performance indicator with the largest overall effect on customer satisfaction and brand advocacy is making the customer feel at ease during the first notice of loss. On average, the industry meets this challenge just 64% of the time. Younger claimants are significantly less likely than their older counterparts to say they are at ease after initially reporting their claim.
Customer preference for digital status updates increases: Preference for digital status updates during the course of a claim has increased 6% over the past two years of the study. However, a majority of claimants still prefer proactive, non-digital status updates, such as calls from the repair facility, calls from the agent and calls from the insurer. When these types of personalized communications are used, customer satisfaction with claim servicing is significantly higher than the baseline factor score.
Amica Mutual ranks highest in overall customer satisfaction with a score of 898. COUNTRY Financial (896) ranks second and Erie Insurance (879) ranks third.
The 2019 U.S. Auto Claims Satisfaction Study is based on responses from 11,186 auto insurance customers who settled a claim within the past six months prior to taking the survey. The study excludes claimants whose vehicle incurred only glass/windshield damage or was stolen, or who only filed a roadside assistance claim. Survey data was collected from November 2018 through September 2019.
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, South America, Asia Pacific and Europe.