Improved Interactions Drive Gen Y Increase in Auto Insurance Satisfaction

Auto-Owners Insurance and State Farm Each Rank Highest in Two of 11 Regions

News provided by

J.D. Power

Jun 19, 2015, 08:00 ET

WESTLAKE VILLAGE, Calif., June 19, 2015 /PRNewswire/ -- Gen Y1 customers are the driving force behind an increase in overall auto insurance satisfaction due to improvement across all customer service interaction channels, the largest contributor to the customer experience, according to the J.D. Power 2015 U.S. Auto Insurance StudySM released today.

The study examines customer satisfaction in five factors: interaction; price; policy offerings; billing and payment; and claims. Satisfaction is measured on a 1,000-point scale.

Overall customer satisfaction with their auto insurer has reached an all-time high of 818, an improvement of 8 index points from 2014. Satisfaction among Gen Y customers has increased the most, compared with the other generations—Gen Y: +21 points; Gen X: +6; Boomers +4; and Pre-Boomers: -3.

The interaction factor has the greatest impact on overall customer satisfaction and is also the largest contributor to the year-over-year improvement. Overall interaction satisfaction among Gen Y customers (827) is up by a significant 20 points from 2014.

Customer interaction preferences are changing. Gen Y's preference to interact exclusively through digital self-service (Web or mobile) has increased to 27 percent in 2015 from 21 percent in 2011. A similar pattern of preference is found in other generational groups (Gen X: 23% vs. 19% in 2011; Boomers: 12% vs. 10%; and Pre-Boomers: 6% vs. 4%). Among the interaction channels, satisfaction with the website experience receives the lowest average score, most notably among Gen Y customers (816, compared with 826 for Gen X, 841 for Boomers and 861 for Pre-Boomers).  

"While customers across all generations are able to use online self-service for basic tasks such as making a payment and gathering information about their account, they should also be able to resolve more complex issues online," said Valerie Monet, director of the insurance practice at J.D. Power. "It is critical for insurers to resolve customers' service needs entirely on the website. This can drive increased use of the website and can minimize servicing costs, as unresolved issues frequently require a contact to call centers or agents, freeing their time to cultivate new business."

According to Monet, some activities are better performed through personal interactions. One-fourth (25%) of Gen Y customers indicate they would rather talk to someone in person or over the phone to discuss price changes, and 23 percent indicate they prefer in person or over the phone rather the website channel when they have questions about their policy coverage. Insurers should focus their in-person resources on high-touch customer calls in which the agent's expertise is highly valued.

KEY FINDINGS

  • The incidence of resolving issues entirely via the website has increased for Gen Y to 81 percent (up by 2 percentage points from 2014), with similar  rates across generational groups—Gen X 82%; Boomers 81%; and Pre-Boomers 80%. Website satisfaction is 123 points lower among customers who do not resolve their issue completely via the website than among those who do (736 vs. 859, respectively).
  • Nearly three-fourths (73%) of Gen Y customers indicate having online access to policy information (+2 percentage points from 2014), compared with 62 percent across the other three generations. The level of awareness of online access to policy information among Gen Y customers (73%) is greater than among customers in the other generational groups (Gen X 68%; Boomers 62%; and Pre-Boomers 54%).
  • Nearly nine in 10 (87%) customers overall indicate receiving communications from their insurer via their preferred method—up 2 percentage points from 2014—compared with 81 percent among Gen Y customers, which is an increase of 5 percentage points.
  • Across all generational groups, 49 percent of customers say they "definitely will" recommend their current insurer (the same as in 2014) and 50 percent say they "definitely will" renew their policy (down 1 percentage point from 51% in 2014).

Regional Overview
Satisfaction varies regionally from a high of 832 in the Texas region to a low of 801 in the New England region. Eight of the 11 study regions post significant increases in overall customer satisfaction year over year, with the greatest improvements in the Florida (+24 points) and Mid-Atlantic (+16) regions.

California: Wawanesa (844) ranks highest in the California region. The Hartford ranks second at 840 and Auto Club of Southern California Insurance Group ranks third at 839.

Central: Auto-Owners Insurance (850) ranks highest in the Central region, followed by Shelter Insurance (846) and State Farm (830).

Florida: GEICO (836) ranks highest in the Florida region. Progressive (835) and Allstate (832) follow GEICO in the rankings.

Mid-Atlantic:  Erie Insurance (850) ranks highest in the Mid-Atlantic region. The Hartford (835) ranks second and State Farm ranks third (826).

New England: Amica Mutual (866) ranks highest in the New England region. State Farm (815) ranks second and Allstate (808) third.

New York: State Farm ranks highest in the New York region (831). GEICO (828) ranks second and Travelers (818) ranks third.

North Central: Auto-Owners Insurance (834) ranks highest in the North Central region. Nationwide (828) ranks second and COUNTRY Financial and Indiana Farm Bureau (822 each) tie for third.

Northwest: PEMCO Insurance (837) ranks highest in the Northwest region, followed by State Farm (830) and Farmers (828).

Southeast: Tennessee Farm Bureau (859) ranks highest in the Southeast region. Alfa Insurance (831) ranks second and Allstate (830) third. 

Southwest: The Hartford and State Farm rank highest in the Southwest region in a tie (830 each). Liberty Mutual (826) ranks third.

Texas: Texas Farm Bureau Insurance (859) ranks highest in the Texas region.  No other insurance company performs above the Texas region average (832).

New Jersey Manufacturers Insurance Company (NJM) and USAA also achieve high levels of customer satisfaction in the study, although they are not included in the rankings due to the closed nature of their respective memberships. 

The 2015 U.S. Auto Insurance Study is based on responses from 46,256 auto insurance customers. The survey data was collected in March and April 2015.

Overall Satisfaction Index Rankings             

J.D. Power.com Power Circle RatingsTM

(Based on a 1,000-point scale)                          

For Consumers


California Region                      




Wawanesa                         

844

5

The Hartford                       

840

5

Auto Club of Southern California Insurance Group    

839

5

Ameriprise                        

831

4

State Farm                   

828

4

Esurance                          

817

4

GEICO                          

812

3

Progressive            

803

3

California Regional Average                      

803

3

Allstate                              

796

3

CSAA Insurance Group          

794

3

Farmers                           

793

3

Safeco Insurance            

787

3

Nationwide                     

786

3

Liberty Mutual                  

785

3

21st Century            

782

3

Mercury                    

781

3

Travelers                 

768

2

Infinity P&C  

715

2

*USAA                      

901





Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Kemper, MAPFRE-Commerce Insurance, and National General.


Central Region               


Auto-Owners Insurance       

850

5

Shelter Insurance      

846

5

State Farm                 

830

4

American Family       

822

3

Central Regional Average    

820

3

Allstate             

819

3

Farmers          

819

3

GEICO                  

818

3

The Hartford               

818

3

Safeco Insurance                

818

3

Auto Club of Southern California Insurance Group     

814

3

Progressive         

807

2

Farm Bureau Mutual         

799

2

Liberty Mutual           

798

2

Nationwide           

789

2

Travelers       

788

2

*USAA         

890





Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size is Automobile Club Group.


Florida Region                  


GEICO                                                            

836

5

Progressive                           

835

5

Allstate                      

832

5

MetLife                           

829

3

Florida Regional Average         

829

3

State Farm                 

816

2

Liberty Mutual                     

814

2

Nationwide                          

803

2

The Hartford                        

801

2

21st Century                    

797

2

Auto-Owners Insurance   

794

2

Travelers              

792

2

Esurance                         

791

2

Safeco Insurance        

788

2

*USAA                 

902





Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Direct General, Farmers, Infinity P&C, and Mercury.


Mid-Atlantic Region                




Erie Insurance                           

850

5

The Hartford                        

835

4

State Farm                          

826

3

Mid-Atlantic Regional Average          

822

3

GEICO                          

821

3

Allstate                           

819

3

Travelers                     

814

3

Progressive                            

811

3

Nationwide                  

802

2

Liberty Mutual              

801

2

Plymouth Rock Assurance                    

801

2

21st Century            

781

2

*USAA                   

906

**NJM Insurance Co.                  

864





Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. **NJM Insurance Co. is an insurance provider open only to New Jersey Business & Industry Association members, State of New Jersey employees, NJM's previously insured drivers, and/or previous/current auto/homeowner policyholders, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Esurance, and MetLife.


New England Region      


Amica Mutual           

866

5

State Farm        

815

4

Allstate               

808

3

Liberty Mutual                       

801

3

New England Regional Average              

801

3

GEICO                           

799

3

Progressive                         

796

3

The Hartford               

793

3

MetLife                               

791

3

Safety Insurance                 

791

3

Travelers                              

791

3

Safeco Insurance                 

786

3

Nationwide                         

778

2

Plymouth Rock Assurance          

777

2

Arbella             

775

2

MAPFRE-Commerce Insurance                                      

774

2

*USAA       

894





Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size is The Hanover.


New York Region      


State Farm                

831

5

GEICO                       

828

5

Travelers             

818

4

New York Regional Average           

813

3

Nationwide                  

806

3

Allstate                  

805

3

New York Central Mutual                     

802

2

MetLife               

799

2

Liberty Mutual                     

792

2

Progressive               

787

2

The Hartford                     

783

2

*USAA                      

911





Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Erie Insurance, and Kemper.


North Central Region        


Auto-Owners Insurance       

834

5

Nationwide            

828

4

COUNTRY Financial          

822

4

Indiana Farm Bureau              

822

4

The Hartford           

821

4

American Family             

819

4

State Farm             

816

4

Erie Insurance         

815

4

Progressive              

813

3

Farmers               

812

3

GEICO                       

812

3

North Central Regional Average             

808

3

Allstate                           

806

3

Grange Insurance              

806

3

Liberty Mutual                    

804

3

MetLife                               

800

3

Michigan Farm Bureau              

796

2

Automobile Club Group                    

794

2

The Hanover                        

785

2

Safeco Insurance         

776

2

*USAA                

898





Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size is Esurance.


Northwest Region           


PEMCO Insurance             

837

5

State Farm                      

830

5

Farmers                          

828

4

GEICO                      

822

3

The Hartford             

820

3

Northwest Regional Average       

817

3

American Family           

805

3

Allstate                     

798

2

Safeco Insurance            

798

2

Progressive                     

794

2

Nationwide                        

781

2

Liberty Mutual               

758

2

*USAA                      

902





Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are COUNTRY Financial, Kemper, and Mutual of Enumclaw.


Southeast Region     




Tennessee Farm Bureau    

859

5

Alfa Insurance 

831

3

Allstate             

830

3

Progressive                  

829

3

North Carolina Farm Bureau              

826

3

Kentucky Farm Bureau               

825

3

Southeast Regional Average    

825

3

State Farm                

824

3

Auto-Owners Insurance         

822

3

GEICO                    

816

3

Nationwide                       

814

3

Travelers                  

808

2

Liberty Mutual           

800

2

Safeco Insurance          

791

2

*USAA                            

919





Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are COUNTRY Financial, Erie Insurance, Esurance, Farmers, Grange Insurance, The Hartford, Kemper, MetLife, National General, and Shelter.


Southwest Region   


The Hartford            

830

5

State Farm               

830

5

Liberty Mutual         

826

3

American Family               

824

3

GEICO                         

824

3

Southwest Regional Average  

824

3

Progressive          

814

2

CSAA Insurance Group       

812

2

Allstate                    

803

2

Farmers                  

797

2

Safeco Insurance         

797

2

*USAA                   

914





Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Auto-Owners Insurance, Farm Bureau Mutual, and Nationwide.


Texas Region                




Texas Farm Bureau Insurance              

859

5

Texas Regional Average          

832

3

State Farm        

827

3

Progressive                        

825

3

GEICO                  

822

3

Farmers                 

811

2

Allstate                   

805

2

Nationwide                

797

2

Liberty Mutual            

792

2

*USAA                      

892





Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Auto Club of Southern California Insurance Group, Kemper, and Safeco Insurance.

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

Media Relations Contacts
Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; 818-317-3070; [email protected] 
John Tews; J.D. Power; Troy, Mich.; 248-680-6218; [email protected]

About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info
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1 J.D. Power defines generational groups as Pre-Boomers (born before 1946); Boomers (1946-1964); Gen X (1965-1976); Gen Y (1977-1994); and Gen Z (1995-2004).

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SOURCE J.D. Power