By Christina Bramlet
Insurers that keep homeowners ap- prised of the claims process from start to finish are faring well in terms of meeting—and even exceeding—their customers’ expectations.
Or so it seems, according to the results of
J.D. Power’s 2014 Property Claims Satisfaction Study.
For the second consecutive year, J.D.
Power found a steady swell in overall satisfaction ratings among property claimants. The firm attributes the uptick in
satisfaction, in large part, to consistent
communication with property claimants,
beginning at first notice of loss (FNOL).
Compared with 2013, the findings released today suggest that homeowners
who filed a non-catastrophic claim in the
past year often received:
A thorough explanation of coverage
when initially reporting a loss. Prompt notification of what damages were covered.
Settlement nearly 4 days faster.
“Starting at the time of first notice of loss,
it is crucial for insurers to keep claimants informed of their claim, the estimate
of damages, the settlement amount, when
work will begin and when it will be completed,” says Jeremy Bowler, senior director
of the insurance practice at J.D. Power.
Setting the gold standard once again for
property insurers everywhere is
Amica Mutual, which scored 898 on the
1,000-point scale used to measure customer satisfaction. The insurer placed
first for the third year running. Trailing
behind Amica Mutual, Erie Insurance
scored 877, followed by Nationwide
(858), Auto-Owners Insurance (854) and
Of course, any number of circumstances can lead to a property claim, from a
water pipe rupturing to a powerful storm
system sweeping through a community. Just as each cause of insured loss is
unique, so too are the causes for customer
Generally speaking, catastrophe losses
garner lower marks in customer satistac-tion when compared to non-catastrophe
claims. The claims-handling challenges
created by Superstorm Sandy have been
well-documented, for example.
Sandy’s Ongoing Impact
While it has been more than 16 months
since Sandy struck, ripples are still being
felt throughout the P&C insurance industry. This is quite evident in feedback
from property owners surveyed by J.D.
Power. After analyzing more than 5,500
responses from those who filed a proper-
J.D. Power: Property Claims Satisfaction
Climbs for Second Straight Year
Highlights Role of Communication Throughout Claims Process
J.D. Power 2014 Property Claims Satisfaction StudySM
(Based on a 1,000-point scale)
Source: J.D. Power 2014 Property Claims Satisfaction Study SM
*USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings.
Included in the study but not ranked due to small sample size are Alfa Insurance; ANPAC; Cincinnati Insurance; COUN TRY;
Encompass; Fireman’s Fund; The Hanover; Mercury; and Shelter.
CSAA Insurance Group
Auto Club of Southern
California Insurance Group
Automobile Club Group