Auto premium increases put
strain on insurers’ customer
By Jayleen R. Heft, PropertyCasualty360.com
Are your insurance agency cli- ents satisfied with their auto insurancecarrier?Anewreport
found that a combination of record numbers of miles driven, increased frequency and severity of collisions and extreme
weather has crimped U.S. auto insurer
profitability, resulting in rate increases
for 26% of customers and a strain on customer satisfaction.
According to the J.D. Power 2017 U.S.
Auto Insurance Study, price satisfaction
declined this year, even as other areas
of the overall customer experience have
The study finds that the number of cus-
Insurers need to emphasize
tomers receiving an annual rate increase
of more than $200 per vehicle has more
than doubled during the past four years,
and that’s having a profound effect on
value of services
Price satisfaction scores among customers who receive a price increase of $200
or more are, on average, 188 points lower
than among those who experience price
increases of just $25 or less. This shows
that auto insurers need to do a better job
of increasing the perception of value in
the services they provide.
“Differentiating on service and demonstrating the value of the policy for premiums paid is going to be the key to improving customer satisfaction,” said Greg
Hoeg, vice president of U.S. insurance
operations at J.D. Power.
“As the amount of losses continues to
increase for a myriad of reasons, premiums must go up for carriers to remain
profitable. However, carriers that are successful in getting beyond price by clearly
communicating and demonstrating value
through smooth claims processing, exceptional customer service and a great selection of offerings will emerge as leaders.
Initiatives such as usage-based insurance
programs and other proactive communications that show customers what they
are getting for their money will help that
• Overall satisfaction improves while
price satisfaction declines: Overall customer satisfaction with U.S. auto insurers
improves in 2017 and is now at a historically high level (819 on a 1,000-point
scale). Despite this improvement, satisfaction scores in the price factor have declined for a second consecutive year.
He also implemented auto-adjudication for the claims department, allowing
more than 15,000 claims to be resolved
within an average span of 48 hours, reducing customer wait time for resolution
and payment. Kay was also instrumental in leading a pilot program within the
company that focused on giving more authority and autonomy to claims handlers.
“I’m extremely grateful to have won
this esteemed award. Seizing every op-
portunity and finding the best ways to
help customers is a wonderful thing,”
shared Kay. “I can’t thank the Claims
team at CSA enough for all of its hard
work and dedication to improving the
customer experience. This was definite-
ly a team effort, and I look forward to
continuing to improve our customer re-
lationships and their experience working
The innovations implemented by each
of these companies and their staffs have
had a major impact on how insurance
claims are handled throughout the indus-
try, improving the processes and level of
service for policyholders industrywide.
DEDICATED TO SERVICE
National Association of Independent Insurance Adjusters
Let NAIIA handle your claims throughout the U.S.
VISIT www.naiia.com TODAY
Request a Blue Book
Assign a Claim
View our Newsletters
CALL CENTER 877-344-0624
24/7/365 - AFTERHOURS and ON-SCENE ASSIGNMENT
ASSIGN DAILY CLAIMS
WEB www.naiia.com | EMAIL firstname.lastname@example.org
Become a Member
Find a Member
View Upcoming Events
Thank you to our Past President,
Welcome to our
New President, Susan Daniels.