New study highlights consumer satisfaction in the auto insurance sector
Global market research firm J.D. Power has released its latest U.S. Auto Insurance Study. The study highlights many of the trends that have emerged in the country’s auto insurance sector and examines how these trends are affecting the insurance business. This year, the study showed that consumer satisfaction has reached an all-time high, despite the fact that insurance premiums have been on the rise for the past five years.
Satisfaction reaches 810 points, highest since annual study was first published in 2000
The study examines consumer satisfaction based on five factors: Interaction with insurers, the cost of insurance policies, the type of policies that are available, how billing is handled, and payment options. Overall, consumer satisfaction is high, with many people offering praise for their insurance providers. Satisfaction has increased by 16 points (on a scale of 1,000), reaching 810. This is the highest satisfaction level that has been reported by J.D. Power since its auto insurance study was first published in 2000.
Premiums are growing, but consumers are shopping for insurance coverage less
Increasing premiums often influences consumer shopping behavior. Typically, when an insurance company raises premiums, consumers seek out less expensive coverage from other companies. The study shows, however, that consumers are actually shopping less, opting to stay with their current insurance providers. This could be due to several factors, including the fact that more insurers are offering rewards for consumer loyalty. Some of these rewards provide consumers with discounts on their insurance coverage.
Communication between insurers and consumers is becoming better, creating more trust between the two parties
The study notes that insurers are communicating with their consumers more effectively. As such, more policyholders are aware of premium increases. Insurers are also informing consumers as to why these premium increases are necessary, highlighting issues like fraud and the changing trends that are emerging in the insurance market as a whole. Better communication is having an effect on how consumers see their insurance providers, and people are beginning to trust their insurers more than they had in the past.