NJM Insurance Co. ranks top in customer satisfaction for auto insurance claims
TROY, Michigan–(BUSINESS WIRE)–
Auto insurers have been battling two major headwinds since the pandemic: rising costs and longer repair cycles. SM is expected to see some moderation in one of these trends this year, according to J.D. Power’s 2024 U.S. Auto Insurance Claims Satisfaction Study released today. According to the study, the average repair cycle time for claims filed late in the response period was 18.9 days, down 5.0 days from 23.9 days in the early part of the response period. While this may provide some peace of mind for insurers and their customers, it has gone in the opposite direction on the cost front, with average repair costs rising 26% over the past two years. Insurance premiums have followed suit, rising 15% over the past year.
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J.D. Power 2024 U.S. Auto Claims Satisfaction Survey (Image: Business Wire)
“The claims process is a critical moment for auto insurance customers, so any claims that result in premium increases, longer-than-expected repair times, or other inconveniences can negatively impact the brand’s overall reputation. It’s a huge loss of trust,” Mark said. Mr. Garrett is Director of Global Insurance Intelligence at J.D. Power. “In fact, 80% of auto insurance customers with poor claims experience say they have already left or plan to leave their insurance company, so this year’s significant improvements in repair cycle times are However, rising premiums are creating new challenges for insurance companies, as they are eroding trust and impacting how customers view insurance claims. There are still many challenges for the industry to overcome in order to maintain customer loyalty.”
Key findings from the 2024 survey include:
Reduced repair cycle times: The overall average repair cycle time in this year’s study was 22.3 days, 1.0 days faster than in the 2023 study. However, when results are broken down by the quarter in which claims were filed, cycle times have steadily improved since their peak in early 2023, with a total reduction of 5.0 days across study conduct in 2024. Post-claim premium increases reduce customer satisfaction: Overall, 48% of survey respondents experienced a premium increase in the past 12 months. Customers who received a price increase before they were billed were especially unsatisfied, and these customers may have already entered the claim process upset by the price increase. According to the study, these customers are more likely to have issues such as less easy communication with their insurance company and less manageable timing of expectations, which leaves them feeling less secure after filing a claim. I found out that Furthermore, almost half of these increases were due to insurance claims. Compared to customers who did not experience an increase, their satisfaction scores decrease by more than 100 points (on a 1,000-point scale) after the complaint-related rate increase. This negative effect was most pronounced among baby boomers 1 and pre-boomers, with a 178 point decrease in trust after claims-related rate increases. Digital billing increases satisfaction, but it doesn’t satisfy all customers. Insurers have been focusing on improving their mobile apps, and it appears to be paying off. For the past three years, claims filed through call centers and agents have outperformed digital channels, but digital now scores higher, with mobile apps achieving the highest scores . Additionally, people who stay in an app to send photos or receive status updates are more satisfied than any other digital experience (775). However, this group only makes up 13% of customers. Baby boomers and pre-boomers remain hesitant to adopt fully digital processes, with 32% saying they are not comfortable using digital tools for overall advocacy. Customers also rate digital channels lower than talking to someone when they have a specific question. Therefore, generational differences and the types of tasks performed still influence digital experiences. Good communication is key to a satisfying insurance claims experience. The most important performance indicator in this study is ensuring that communication with insurance company representatives is very easy. Be easily accessible. Respond in a timely manner. A person who provides consistent service. Manage timing expectations. And providing options for proactive updates are all important elements of communication across claims. This is another area where digital tools play a key role in helping customers access and stay informed.
Research ranking
NJM Insurance Co. ranks highest in overall customer satisfaction with a score of 782. Amica (746) is second and Erie Insurance (733) is third.
The U.S. Auto Insurance Claims Satisfaction Survey has been redesigned for 2024. Scores cannot be compared year-over-year with previous surveys. The 2024 study is based on responses from 9,725 auto insurance customers who resolved a claim within the past nine months prior to study participation. It measures customer experience across eight key dimensions (in order of importance). Fairness of settlement. When to settle a claim. people; communication; ease of complaint resolution. Easy to start billing. and digital channels. This study excludes claimants whose vehicle sustained only glass/windshield damage, was stolen, or only made a roadside assistance claim. The study was conducted from October 2023 to August 2024.
For more information on the U.S. Auto Insurance Claims Satisfaction Survey, please visit:
https://www.jdpower.com/resource/jd-power-us-auto-claims-satisfaction-study.
See online press release at http://www.jdpower.com/pr-id/2024133.
About JD Power
JD Power is a global leader in consumer insights, advisory services, data and analytics. JD Power is a pioneer in using big data, artificial intelligence (AI), and algorithmic modeling capabilities to understand consumer behavior, providing incisive industry intelligence about how customers interact with brands and products for more than 55 years. I’ve been doing it. The world’s leading companies across major industries trust JD Power to guide their customer-facing strategies.
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1 JD Power defines the generation group as pre-boomers (born before 1946). Boomer generation (1946-1964). Generation X (1965-1976). Generation Y (1977-1994). and Generation Z (1995-2006). Millennials (1982-1994) are a subset of Generation Y.
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Media Contact
Geno Effler, JD Power; West Coast; 714-621-6224; (email protected)
John Roderick. East Coast; 631-584-2200; (email protected)
Source: JD Power
