WESTLAKE VILLAGE, Calif.: 14 November 2013 — Customer satisfaction with their property insurance claims experience improves due to insurers providing accurate timelines of the claims process length and helping claimants avoid settlement negotiations, according to the J.D. Power 2014 Property Claims Satisfaction StudySM—Wave 2 released today.
The study measures satisfaction with the property claims experience among insurance customers who filed a claim for damages covered under their homeowners policy by examining five factors: settlement; first notice of loss; estimation process; service interaction; and repair process.
- Overall claimant satisfaction increases to 848 (on a 1,000-point scale) in Wave 2 from 832 in Wave 1.
- Overall satisfaction among first-time claimants improves by 17 points to 842 in Wave 2 from 825 in Wave 1. The increase in first-time claimant satisfaction is due to a significant increase in the percentage of claimants whose insurer provided an accurate timeline of the claims process length (76% in Wave 2 vs. 72% in Wave 1) and a significant increase in the percentage of claimants who avoided a settlement negotiation (75% did not have to negotiate the settlement in Wave 2 vs. 71% in Wave 1).
- Satisfaction with agent first notice of loss (FNOL) drops to 853 in Wave 2 from 875 in Wave 1, while satisfaction with direct FNOL--reporting claims via a call center, website or other electronic method--improves to 855 in Wave 2 from 829 in Wave 1.
- Satisfaction with non-catastrophic damage claims increases to 840 from 829 in the 2013 Property Claims Satisfaction Study and 833 in the 2012 study. The increase in satisfaction is a result of significantly higher scores in the estimation process, repair process and settlement factors.
"Insurers are doing a better job of setting claimant expectations of the time it will take to settle their claim, which is a significant contributor to overall satisfaction," said Jeremy Bowler, senior director of the global insurance practice at J.D. Power. "Based on feedback from claimants, it is evident that insurers also are more consistently taking time to explain the settlement, which results in fewer claimants negotiating their settlement."
The 2014 Property Claims Satisfaction Study—Wave 2 is based on responses from 1,740 homeowners insurance customers who filed a property claim after June 1, 2012. The current wave of the 2014 study was fielded in the third quarter of 2013. This information follows the previous reporting period, Wave 1, which published in August and covered claims that were filed between April 1, 2012, and June 19, 2013.
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