Overall satisfaction for homeowners who have filed a property claim remains high: U.S. study

Insurance providers in the United States have been able to focus time on and apply lessons to managing non-catastrophic claims, which has resulted in a third consecutive year of higher overall satisfaction among homeowners who have filed a property claim, according to the J.D. Power 2015 Property Claims Satisfaction Study released today.

The study, now in its eighth year, measures satisfaction with the property claims experience among insurance customers who have filed a claim for damages by examining five factors: settlement, first notice of loss, estimation process, service interaction, and repair process.

With a record 25 separate catastrophic (CAT) losses in 2011 and 2012 combined, insurers have welcomed the comparatively quiet period since, with eight events in 2013 and only five in 2014 within the primary fielding period of the 2015 study, said a press release from J.D. Power. By applying the lessons learned while handling CAT claims to non-CAT claims and by putting renewed focus on their property insurance business, insurers have been able to increase property claims satisfaction to 851 (on a 1,000 point scale) in 2015, up from 840 in 2014.

“The study shows the significant gains insurers have made in customer satisfaction by applying the lessons learned while handling prior catastrophic losses to all claim processes,” said Jeremy Bowler (pictured), senior director of the insurance practice at J.D. Power, in the release. “The big storms masked the steady progress the industry has also been making in recent years on routine claims, but we’re really seeing that shine now.”

Bowler noted that while many insurers previously focused on managing their auto insurance claims, they are now increasing their investment of time and resources in their property insurance business. “They are getting serious about applying the knowledge from their auto business to property claims, and we’re seeing that reflected in higher customer satisfaction,” he said.

Improving satisfaction is critical for insurers, as they often realize a return on their investment in customer satisfaction in the form of loyalty. Only 3% of customers who were delighted (satisfaction scores 900 or higher) and 7% of those who were pleased (scores 750-899) with their insurer during the claims process have switched carriers since their claim closed. In contrast, 9 percent of indifferent (scores 550-749) and 11% of displeased (scores 549 or lower) customers have switched to a different insurer. Additionally, 23% of indifferent customers and 42% of displeased customers say they “will shop” for a new provider during the next 12 months.