U.S. customer satisfaction high for property claims, despite high number of settlements

Despite the high number of property claim settlements from natural catastrophes in the United States over the past two years, overall customer satisfaction with the claims experience remains high, according to recent survey findings.

The 2013 Property Claims Satisfaction Study by J.D. Power and Associates measures satisfaction with the property claims experience among insurance customers who filed a claim for damages covered under their homeowners’ policy.

The survey looks at five factors: settlement; first notice of loss; estimation process; service interaction; and repair process.

This year’s survey findings suggest that the overall customer satisfaction level is high at 832 on 1,000-point scale, the company said. That’s a one point decrease from last year’s results, but a significant increase from 823 in 2011 and 818 in 2010, the company said.

The average settlement among the 8% of U.S. homeowners who filed property claims was $8,517, up from $7,937 last year, J.D. Power notes.

The amount to cover the cost of repairs increased to $7,844 in 2013 from $7,151 in 2012, the company says, while the average out-of-pocket expenses paid by homeowners nearly doubled to $3,888 in 2013 from $1,945 in 2012.

The most frequent reasons for filing a claim are tornado/hurricane (33%); hail (22%); and water damage not caused by weather (14%), according to the study.

“Despite increases in both the frequency and average severity of property damage in the U.S. during the past two years, the fact that customer satisfaction remains high is a testament to how diligently the personal insurance industry has responded to its customers,” Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates commented in a statement on the findings.

Satisfaction with the “service interaction process” did, however, decline by nine points this year (over 2012). J.D. Power attributes that to a continuing trend of homeowners filing their claim through direct channels (online or over the phone) rather than through an agent.

The study found that 68% of customers filed their claim through direct channels, up from 57% in 2012. Satisfaction was 50 points higher for those that filed through an agent than those who filed directly.

Among those surveyed, 72% who filed with an agent said their agent “helped put them at ease,” while 56% who filed directly said the same for their call centre experience, the company says.

“The industry is definitely shifting toward direct channels,” Bowler noted. “As that shift continues, the key for insurance companies is to ensure their call centre representatives are fully trained to provide the claims experience their customers have come to expect.”

The study was based on more than 5,500 responses from homeowners insurance customers who filed a property claim between May 2011 and January 2013.