Homeowners insurance customers who file a property claim are much less satisfied with their claims experience than auto claimants, according to a new study.
The satisfaction level of homeowners claimants is significantly lower than that of auto claimants, says J.D. Power and Associates 2009 Home Claims Satisfaction Study. The study finds that customer satisfaction with the home claims experience averages 828 on a 1,000-point scale. In comparison, satisfaction with the auto claims experience averages 842, according to the J.D. Power and Associates 2009 Auto Claims Satisfaction Study released in November.
“Home claims are typically far more complex than auto claims, and homeowners insurance claimants tend to have less knowledge of the specifics of their policy coverage than do auto claimants,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates. “Although satisfying home claimants is particularly challenging, it’s still crucial for insurance providers to meet the needs of these customers, given the significant impact the experience has on long-term policy retention.”
The study also finds that higher levels of satisfaction with the home claims experience have a positive impact on customer loyalty and advocacy. Among customers of insurers that achieve high satisfaction scores (averaging 837 or higher), two-thirds say they “definitely will” renew their policy, while 64 percent say they “definitely will” recommend the insurer. In contrast, among customers of insurers with lower levels of satisfaction (scores averaging 816 or below), only 49 percent say they “definitely will” renew and 42 percent say they “definitely will” recommend the insurer.
“While only about 6 percent of homeowners insurance customers per year file a home claim, for those who do, no other aspect of the experience with their insurer is more meaningful,” said Bowler. “An experience that meets or exceeds customer expectations may foster long-term loyalty, just as a negative experience may drive a customer to shop other insurance companies.”