Consumer satisfaction with life insurance companies hit a record high in the JD Power 2017 U.S. Life Insurance Study.
Better economic conditions, favorable pricing and higher customer engagement helped raise satisfaction levels, the company reported.
The average overall customer satisfaction index ranking of life insurers rose to 785 points, 16 index points higher than last year, J.D. Power found.
As more consumers show interest in life insurance in an improving economy, insurers have welcomed the opportunity to improve customer engagement levels by clarify policies and billing statements, for example, said Gregory Hoeg, vice president of insurance practice at J.D. Power. The proportion of newer customers who say they “completely understand” billing statements rose by 20 percentage points year over year, J.D. Power said.
Price is a “key driver” of higher customer satisfaction and multiple policy pricing discounts are correlated to higher satisfaction levels, the survey found.
Continuing to Lead
Multi-policy discounts and a widespread agent distribution network boosted State Farm’s lead as the top insurer in this year’s survey.
State Farm finished top of the heap with 853 points, well ahead of No. 2 insurer MetLife with 812 points, the survey found.
It is the fourth year in a row that State Farm has finished first in the J.D. Power survey.
Last year State Farm finished with 828 points, ahead of No. 2 finisher Nationwide with 806 points, the survey found.
The study has been conducted annually for more than 10 years and is based on a 1,000-point scale.
There were 25 insurance companies participating in this year’s survey.
State Farm’s ability to bundle multiple products – life, annuities, property and casualty, as well as banking products -- means more touch points for customers looking to develop more contacts with insurance professionals.
“When it comes to making decisions about financial products, people want to talk to a financial professional,” Hoeg said.
The top five insurers in the year’s survey were State Farm (853 points), MetLife (812), Pacific Life (808), Nationwide (806) and Northwestern Mutual (802), J.D. Power said.
Last year’s top five were State Farm (828 points), Nationwide (806), Northwestern Mutual (799), Pacific Life (790) and MassMutual (780), J.D. Power reported.
InsuranceNewsNet Senior Writer Cyril Tuohy has covered the financial services industry for more than 15 years. Cyril may be reached at [email protected]
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