September 29, 2014 12:16 am
Gen Y consumers expressed the most concern with interactions with service providers and claims processing.
“Millennials are a critical demographic for insurance companies, given that they are the largest group of homebuyers and renters,” said Valerie Monet, director of the insurance practice at J.D. Power. “Insurers in one or both of these product categories need to pay very close attention to Millennials, evaluate the usability of their website and find new ways to communicate with customers, such as through the use of email, apps and online chat.”
Insurers that are most successful in understanding and meeting the expectations of Gen Y customers have a higher rate of executing on the following service practices than insurers less successful in understanding Gen Y needs: informing customers of other products and services; providing access to policy information online; ensuring complete understanding of the bill; limiting bill errors; resolving issues in one contact; and limiting customer-reported problems.
“In short, insurers benefit from ensuring that their Gen Y customers are well informed, and that there are no issues or problems in servicing their policy,” said Monet. The study also revealed:
- Overall customer satisfaction with homeowner insurers is up since 2013, increasing 3 points on a 1,000-point scale. This increase is driven largely by an improvement in price factor.
- Sixty percent of customers indicate their homeowners insurance premiums have remained the same during the past 12 months, up from 58 percent in 2013.
- The proportion of customers who experience an insurer-initiated premium increase dropped slightly to 29 percent in 2014 from 30 percent in 2013.
Source: J.D. Power
Published with permission from RISMedia.