Insurance Providers Focus on Customer Experience As Rates Remain Relatively Stable, J.D. Power Study Finds
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Historically, price has been the leading basis of competition for many insurers. The industry is currently in what could best be described as a stagnant or soft cycle, with rates remaining relatively stable. On average, customers report an annual premium charge of
"Insurers have shifted their competitive focus to improving communication, process efficiency, and being easier to work with as a way to solidify and grow their business," said
The shift in insurers' strategic priorities has resulted in a significant increase in satisfaction. Overall customer satisfaction with homeowners insurers is 804 (on a 1,000-point scale) and overall customer satisfaction with renters insurance companies is 825, each a 17-point increase from 2015. Monet noted that while in the homeowners and renters segments satisfaction with price is up (+16 points) because rates are stable, the increase in satisfaction with policy offerings (+25) is actually a much larger driver of the overall annual change in satisfaction. Improved communication is helping customers to see the value in the products they purchase. Among homeowners customers, satisfaction also improves significantly in claims (+19 points) and interaction (+10).(1)
"By pleasing their current customers, which builds loyalty and advocacy, insurers benefit financially," said Monet. "Customers don't often just pocket the savings that result from stable premiums. If they are happy with their current insurer, they will frequently modify their policy by increasing their coverage or purchasing additional insurance with the savings, such as adding riders for high-priced items like jewelry, artwork and family heirlooms."
Keywords for this news article include: Homeowners,
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