Amica Leads Homeowner Insurance Providers

September 2, 2011

This article is included in these additional categories:

Analytics, Automated & MarTech | Brand Metrics | Data-driven | Financial Services | Real Estate | Uncategorized

jdpower-customer-satisfaction-homeowner-insurance-sept11.gifAmica Mutual ranks highest for a 10th consecutive year among US homeowners insurance companies and performs particularly well in all five factors that contribute to overall customer satisfaction, according to the J.D. Power and Associates 2011 US National Homeowners Insurance Study. Amica scored 831 points on a 1,000-point scale, significantly outperforming the industry average of 769.

Following Amica Mutual in the rankings are Auto-Owners Insurance and Erie Insurance (in a tie), Cincinnati Insurance, State Farm, and American Family, respectively. USAA, an insurance provider open only to U.S. military personnel and their families and therefore not included in the J.D. Power rankings, also achieves a high level of customer satisfaction.

The study measures customer satisfaction with homeowners insurance companies by examining five key factors: policy offerings; price; billing and payment; interaction; and claims.

More information on the latest personal lines insurance benchmarks – including advertising spending and efficacy, customer satisfaction, loyalty, and purchase drivers – can be found in a new report from MarketingCharts.

Overall Satisfaction Up YOY

Overall satisfaction with homeowners insurance companies averages 769 in 2011, improving by 19 points from 750 in 2010. While satisfaction has improved in all five factors from 2010, the greatest gain occurs in the interaction factor. Among homeowners insurance customers, those who bundle more than one policy with their insurer are notably more satisfied with price than customers who do not bundle policies.

Flood Insurance Holders Less Satisfied

Among homeowners insurance policyholders, J.D. Power analysis shows those with flood insurance tend to be significantly less satisfied with their policy coverage, compared with policyholders who opt not to carry it. Among homeowners who carry flood insurance, overall satisfaction with their homeowners insurance company averages 735 on a 1,000-point scale in 2011. In comparison, satisfaction among homeowners with earthquake insurance coverage averages 766.

Gulf State Residents Most Likely to Carry Flood Insurance

J.D. Power data shows that fewer than one in 10 homeowners insurance customers in New England and the Mid-Atlantic states report carrying flood insurance prior to Hurricane Irene. While a higher proportion of policyholders in the Gulf states, more than 25%, carry flood coverage either through their homeowners insurance company, state flood plans or another provider, J.D. Power says this is still a relatively low proportion, considering the frequency of hurricanes and other severe weather events in the region.

16% Carry Less than Full Coverage

The study finds that approximately 16% of homeowners insurance policyholders indicate they carry less coverage than would be required to fully rebuild their home in the event of a total loss. Among these policyholders, satisfaction averages 739, more than 40 points lower than among policyholders who say they have sufficient coverage.

Amica Also Satisfies Auto Insurance Customers

Amica Mutual ranks highest in customer satisfaction with US auto insurance companies for a 12th consecutive year, with a score of 843 out of 1,000, according to the J.D. Power and Associates 2011 U.S. National Auto Insurance Study. Erie Insurance (825) and Shelter (816) follow in the rankings.

About the Data: The 2011 U.S. National Homeowners Insurance Study is based on responses from more than 9,100 homeowners insurance customers. The study, published by J.D. Power and Associates, was fielded between April and July 2011 and is the source of the enclosed chart.

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