Auto Insurance Customer Satisfaction Survey
Here's a great post by Renaissance President, Bruce Cochrane
J D Power released the results of their annual auto insurance customer satisfaction survey last week and it offers some interesting observations. Overall, satisfaction country wide is down from last year, driven mostly by average increases in auto insurance premiums. The jewel in this survey's results is that customers who are given early notification of premium increases and provided with advice on how to mitigate the increases are more satisfied and more likely to remain with the current agent/carrier. Here are some other highlights from this year's satisfaction survey.
â€¢ Customer satisfaction has a direct correlation to carrier retention and profitability.
â€¢ Only 38% of the customers said they were offered a policy review in the past 12 months, but those who were offered such a review showed a big lift in customer satisfaction.
â€¢ Only 54% of customers said they received print/electronic communications over the past 12 months (other than those relating to the renewal or billing), but those who did receive these communications (tips about mitigating risks, etc.) had a higher level of customer satisfaction because they felt the carrier or agent cared about them.
â€¢ Over 50% of customers said they did not get advance notification of premium increases (other than in the bill), even though those that do show a lift in satisfaction.
â€¢ Percentages of customers who switch insurers or at least shop them increased, depending upon how large the premium increase is.
It's no revelation that customer satisfaction is good for business, both for carriers and agents, but this particular survey strongly suggests that in these times of premium increases, proactive agents will be rewarded.