State Farm Ranks Highest in Individual Life Insurance Satisfaction
The adage that “life insurance is sold, not bought” may have met its match in the one-two punch of the COVID-19 pandemic and a federal tax code change that makes it possible for policyholders to build more cash value in their plans. According to the
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"Life insurance ownership has been declining for the past 30 years and overall customer satisfaction with life insurance has historically deteriorated consistently from the moment it is purchased,” said
Following are some key findings of the 2021 study:
- Life insurance customer satisfaction surges: The overall customer satisfaction score for life insurance providers is 776 (on a 1,000-point scale), up 13 points from 2020 as customer interest in life insurance rises. While most customers are buying life insurance to cover final expenses and leave money to beneficiaries, 18% are using the policies to protect retirement income and 9% are using them for tax planning purposes.
- Agent/adviser relationship is key to satisfaction and advocacy—but mark often missed: Five key characteristics of the agent/adviser-customer relationship drive overall satisfaction and advocacy: help customers understand the policy; understand customer goals; work as a team; make recommendations in customer’s best interest; and take actions with a long-term relationship in mind. When those criteria are met, satisfaction and brand advocacy skyrocket. However, only 34% of agents/advisers meet all those criteria today.
- Website more important than ever: Insurer websites are the most frequently used communication channel for life insurance customers, with 40% now using their insurer’s website for services ranging from researching policy information to accessing their account and making payments. Overall customer satisfaction with life insurer websites climbs 24 points this year to 844.
- Leveling up communications: Overall customer satisfaction increases 50 points when customers recall receiving just one communication from their life insurance provider during the past 12 months, but only 53% of customers indicate receiving such communications. Further along the proactive communication continuum, among those who receive an email communication customer satisfaction increases 81 points and among those who receive communications tailored to meet their specific needs satisfaction increases 172 points.
The 2021 U.S. Individual Life Insurance Study measures the experiences of customers of the largest individual life insurance companies in
The 2021 study is based on responses from 4,625 individual life insurance customers and was fielded in June-
For more information about the
To view the online press release, please visit http://www.jdpower.com/pr-id/2021136.
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