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Auto Insurance Customer Satisfaction Reaches Record High, J.D. Power Finds Improvements in Digital Interactions, Billings/Payment, Policy Offerings Drive Increase COSTA MESA, Calif.: 14 June 2018 — Despite steadily increasing premiums, auto insurance customers are more satisfied with their carriers than ever. The reason? According to the J.D. Power 2018 U.S. Auto Insurance Study,SM released today, insurers are beginning to get the customer interaction formula right, offering a mix of digital and live interactions that keep customers engaged with their brands across all channels. “Cost is not the sole indicator of customer satisfaction in the auto insurance industry,” said Robert Lajdziak, Insurance Practice Business Consultant at J.D. Power. “Low prices may attract new customers, but it’s service that keeps them. The auto insurers that increase customer satisfaction across all facets of the customer experience make price just one part of the overall relationship.” More frequent use of digital interaction channels—particularly for monthly billing—also has played a major role in driving higher levels of satisfaction. “Customer satisfaction is at its highest when customers take care of transactions themselves and save the high-value interactions for live channels,” Lajdziak said. “However, the increasing demand and use of digital self-service options is putting pressure on agents to evolve their value proposition to offer more products and services to help customers with complex needs and risks.” Following are some of the key findings of the 2018 study:
• Record-high customer satisfaction breeds loyalty: Overall customer satisfaction with U.S. auto insurers improves in 2018 and is now at a record-high level of 826 (on a 1,000-point scale). This increase in customer satisfaction is inversely correlated with a decline in auto insurance shopping rates, which have reached a record low.1
• Insurers delivering strong omnichannel experience: Customer satisfaction improves across all factors measured in the study, with the biggest gains in billing process and policy information (+11 points); policy offerings (+10); price (+6); and interaction (+3). The gain in the billing process and policy information factor is partly driven by increased satisfaction with electronic statements and monthly billing.
• Preference for digital interaction channels grows: Overall satisfaction tends to be highest when
customers interact via a mix of online and offline methods of communication. The preference for digital forms of communication is greatest for low touch-point interactions, such as verifying payment receipt (73% digital preference); making payment (70% digital preference); and ordering proof of insurance cards (66% digital preference).
1 J.D. Power 2018 U.S. Insurance Shopping StudySM
• Transparency is key when premium increases are introduced: When there is an insurer-initiated premium increase, it is important to communicate that an increase is coming. When customers are pre-notified of a premium increase, overall satisfaction is 797. When they are not notified—which happens 49% of the time—overall satisfaction drops 49 points to 748.
• Usage-based insurance programs grow significantly: Usage-based insurance programs, which
leverage telematics technology to set insurance premiums based on how far and how safely a customer drives, are gaining converts. This year, 10% of insurance customers indicate participating in usage-based insurance programs, up from 8% in 2016 and 2017. While the most common reason for participating in a usage-based program is to obtain a discount, speeding alerts, vehicle tracking and driver coaching are gaining importance among customers currently using such programs.
Study Rankings Following are the highest-ranked auto insurance brands by region: California: Ameriprise Central: Shelter Florida: MetLife Mid-Atlantic: Erie Insurance New England: Amica Mutual New York: New York Central Mutual North Central: Auto-Owners Insurance Northwest: PEMCO Insurance Southeast: Farm Bureau Insurance—Tennessee Southwest: CSAA Insurance Group Texas: Texas Farm Bureau The 2018 U.S. Auto Insurance Study examines customer satisfaction in five factors (in order of importance): interaction; policy offerings; price; billing process and policy information; and claims. The study is based on responses from 44,622 auto insurance customers and was fielded from February-April 2018. For more information about the U.S. Auto Insurance Study, visit http://www.jdpower.com/resource/jd-power-us-auto-insurance-satisfaction-study. See the online press release at http://www.jdpower.com/pr-id/2018084. 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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Media Relations Contacts Geno Effler; Costa Mesa, Calif.; 714-621-6224; [email protected] John Roderick; St. James, N.Y.; 631-584-2200; [email protected] About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info
# # # NOTE: 11 charts follow.
Year / Project / Study Name
862
844
840
835
822
820
818
816
814
813
813
811
807
800
796
795
795
774
894
600 1,000
Ameriprise
Wawanesa
Auto Club of Southern California Insurance Group
The Hartford
21st Century
Allstate
Esurance
Liberty Mutual
CSAA Insurance Group
State Farm
California Region
Safeco
GEICO
Progressive
Nationwide
Farmers
Mercury
Kemper
*USAA
J.D. Power2018 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index RankingCalifornia Region
(Based on a 1,000-point scale)
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Source: J.D. Power 2018 U.S. Auto Insurance StudySM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
Notes: *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, Fred Loya Insurance, Infinity P&C, MAPFRE Insurance, MetLife, and National General. State included in region is California.
Year / Project / Study Name
855
847
838
833
826
824
823
822
821
815
814
806
806
803
803
906
600 1,000
Shelter
Auto-Owners Insurance
GEICO
Auto Club of Southern California Insurance Group
Central Region
State Farm
American Family
Allstate
Farmers
Progressive
Travelers
Farm Bureau Mutual
Liberty Mutual
Nationwide
Safeco
*USAA
J.D. Power2018 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index RankingCentral Region
(Based on a 1,000-point scale)
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Source: J.D. Power 2018 U.S. Auto Insurance StudySM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
Notes: *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 21st Century, Alfa Insurance, Cincinnati Insurance, COUNTRY Financial, CSAA Insurance Group, Esurance, and The Hartford. States included in region are Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota.
Year / Project / Study Name
849
837
832
826
825
823
820
812
812
810
808
806
805
798
793
888
600 1,000
MetLife
Allstate
GEICO
Esurance
Safeco
Florida Region
Farmers
Auto-Owners Insurance
Progressive
Travelers
Mercury
The Hartford
Liberty Mutual
State Farm
Nationwide
*USAA
J.D. Power2018 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index RankingFlorida Region
(Based on a 1,000-point scale)
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Source: J.D. Power 2018 U.S. Auto Insurance StudySM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
Notes: *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 21st Century, Amica Mutual, Direct General, Infinity P&C, and National General. State included in region is Florida.
Year / Project / Study Name
854
848
839
838
837
835
835
826
823
820
816
814
801
896
864
600 1,000
Erie Insurance
GEICO
The Hartford
Mid-Atlantic Region
Allstate
Plymouth Rock Assurance
Progressive
State Farm
Nationwide
Travelers
CSAA Insurance Group
Farmers
Liberty Mutual
*USAA
**NJM Insurance Co.
J.D. Power2018 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index RankingMid-Atlantic Region
(Based on a 1,000-point scale)
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Source: J.D. Power 2018 U.S. Auto Insurance StudySM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
Notes: *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; employees of the state of New Jersey; employees of a New Jersey county, municipality or township; employees of a New Jersey public school; 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 21st Century, Alfa Insurance, Ameriprise, AmicaMutual, Cincinnati Insurance, Esurance, MetLife, and National General. States included in region are Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia.
Year / Project / Study Name
879
838
834
827
826
821
817
813
811
809
804
804
803
800
796
795
893
600 1,000
Amica Mutual
State Farm
Allstate
GEICO
Progressive
New England Region
Nationwide
Safety Insurance
MAPFRE Insurance
Liberty Mutual
Plymouth Rock Assurance
Travelers
MetLife
Arbella
Safeco
The Hanover
*USAA
J.D. Power2018 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index RankingNew England Region
(Based on a 1,000-point scale)
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Source: J.D. Power 2018 U.S. Auto Insurance StudySM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
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. States included in region are Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont.
Year / Project / Study Name
852
834
824
821
821
820
818
816
813
806
900
600 1,000
New York Central Mutual
MetLife
Allstate
Travelers
New York Region
State Farm
Liberty Mutual
Progressive
GEICO
Nationwide
*USAA
J.D. Power2018 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index RankingNew York Region
(Based on a 1,000-point scale)
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Source: J.D. Power 2018 U.S. Auto Insurance StudySM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
Notes: *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 21st Century, Ameriprise, Amica Mutual, The Hanover, The Hartford, Kemper, and National General. State included in region is New York.
Year / Project / Study Name
850
849
847
845
840
838
835
830
829
823
820
818
816
816
815
812
811
808
808
805
803
799
905
600 1,000
Auto-Owners Insurance
COUNTRY Financial
Cincinnati Insurance
Erie Insurance
State Farm
The Hartford
MI Farm Bureau
GEICO
North Central Region
Allstate
American Family
Progressive
Grange Insurance
The Hanover
Nationwide
Liberty Mutual
MetLife
Automobile Club Group
Farmers
Travelers
Safeco
Esurance
*USAA
J.D. Power2018 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index RankingNorth Central Region
(Based on a 1,000-point scale)
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Source: J.D. Power 2018 U.S. Auto Insurance StudySM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
Notes: *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 21st Century, Ameriprise, Amica Mutual, and National General. States included in region are Illinois, Indiana, Michigan, Ohio, Wisconsin.
Year / Project / Study Name
842
832
826
817
813
808
807
805
798
798
785
782
896
600 1,000
PEMCO Insurance
The Hartford
American Family
State Farm
Northwest Region
Progressive
Liberty Mutual
GEICO
Allstate
Safeco
Farmers
Nationwide
*USAA
J.D. Power2018 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index RankingNorthwest Region
(Based on a 1,000-point scale)
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Source: J.D. Power 2018 U.S. Auto Insurance StudySM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
Notes: *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 Ameriprise, COUNTRY Financial, Kemper, MAPFRE Insurance, and National General. States included in region are Idaho, Montana, Oregon, Washington, Wyoming.
Year / Project / Study Name
884
842
839
839
832
830
830
829
824
823
822
821
820
814
810
796
894
600 1,000
Farm Bureau Insurance - Tennessee
Auto-Owners Insurance
GEICO
NC Farm Bureau
Southeast Region
Allstate
Progressive
Alfa Insurance
KY Farm Bureau
Nationwide
Travelers
State Farm
Safeco
Liberty Mutual
National General
MetLife
*USAA
J.D. Power2018 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index RankingSoutheast Region
(Based on a 1,000-point scale)
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Source: J.D. Power 2018 U.S. Auto Insurance StudySM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
Notes: *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 21st Century, Ameriprise, Amica Mutual, Cincinnati Insurance, COUNTRY Financial, Direct General, Erie Insurance, Esurance, Grange Insurance, The Hanover, The Hartford, Kemper, and Shelter. States included in region are Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee.
Year / Project / Study Name
839
838
829
819
819
815
812
811
809
805
798
797
792
887
600 1,000
CSAA Insurance Group
The Hartford
State Farm
American Family
Southwest Region
Allstate
Progressive
Liberty Mutual
Travelers
Nationwide
GEICO
Farmers
Safeco
*USAA
J.D. Power2018 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index RankingSouthwest Region
(Based on a 1,000-point scale)
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Source: J.D. Power 2018 U.S. Auto Insurance StudySM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
Notes: *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 21st Century, Ameriprise, Esurance, Farm Bureau Mutual, Fred Loya Insurance, Kemper, and MetLife. States included in region are Arizona, Colorado, Nevada, New Mexico, Utah.
Year / Project / Study Name
861
835
827
823
822
821
816
816
815
813
807
899
600 1,000
TX Farm Bureau
Allstate
Texas Region
MetLife
Farmers
Auto Club of Southern California Insurance Group
GEICO
State Farm
Progressive
Nationwide
Liberty Mutual
*USAA
J.D. Power2018 U.S. Auto Insurance StudySM
Overall Customer Satisfaction Index RankingTexas Region
(Based on a 1,000-point scale)
JDPower.comPower Circle RatingsTM
for consumers:
Among the bestBetter than mostAbout averageThe rest
Power Circle Ratings Legend
Source: J.D. Power 2018 U.S. Auto Insurance StudySM
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.
Notes: *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 21st Century, Ameriprise, Amica Mutual, Direct General, Esurance, Fred Loya Insurance, Infinity P&C, and Kemper. State included in region is Texas.