Homeowner policyholder satisfaction decreases in 2010: J.D. Power

Canadian consumers aren’t as pleased with their home insurers as last year, citing a combination of premium increases and less-frequent communication with their insurers, reports J.D. Power and Associates.
In its 2010 Canadian Home Insurance Customer Satisfaction Study, J.D. Power measures home insurance policyholder satisfaction with five factors:
• interaction
• price/premium
• policy offerings
• billing/payment
• claims
Overall satisfaction with home insurance providers averages 735 on a 1,000-point scale in 2010, down two points from 2009, reports J.D. Power.
“The decrease is primarily driven by a decline in satisfaction with the policy offerings factor, down 17 points from 2009,” a release says.
In 2010, 57% of policyholders indicated they were notified in advance of premium changes, compared with 63% in 2009. Only 28% of policyholders indicate their insurance provider discussed coverage and discount options with them, compared with 43% in 2009.
The proportion of home insurance policyholders that experienced rate increases between 2009 and 2010 increased from 43% to 47%, likely due to increasing property values, it continues.
The findings are a stark contrast to a similar satisfaction study carried out with auto policyholders, J.D. Power notes. That study found a 26% increase in satisfaction between 2009 and 2010, despite an increase in premiums for the majority of survey respondents. Consumers reported an increase in the amount of communication they’ve had with their auto insurers, which contributed to their overall satisfaction.
“Insurance companies typically place more emphasis on communicating auto policy rate and coverage changes, compared with home insurance policies, as auto premiums tend to be higher and are regulated more heavily,” said Lubo Li, J.D. Power’s senior director and practice leader of Canadian financial services and insurance.
“It’s important for insurance companies to be consistent in their approaches to both product lines.”