Satmetrix benchmark study reveals loyalty leaders in American insurance industry

Online InsuranceNet Promoter software company, Satmetrix, which is the customer experience program marketplace leader, has released its 2012 Net Promoter Industry Benchmarks for 22 different industries, including the insurance sector.

As a whole, the study was broader than it has been in previous years, involving the participation of over 30,000 American consumers who provided their rating feedback about over 200 brands across the various industries.

The benchmarks that it creates are based upon the survey responses from consumers across the United States who rated their various experiences with the top brands that they had used. The Net Promoter Score (NPS) was then applied to the results of each brand. This is based upon the likelihood that a consumer will recommend that brand’s product or service within its sector.

The NPS is calculated by using the percentage of consumers who will provide this promotion, giving a rating of either 9 or 10 on a scale of 0 to 10. The percentage of individuals who are detractors – that is, those scoring 6 or lower – are then subtracted from that number.

Each brand was also rated by the consumers on various factors relating to customer experience, such as customer service, the features of the products or services, and the overall value. This allowed Sametrix to be able to perform an analysis of the recommendations and loyalty drivers.

In the insurance industry, this year’s report showed some of the best and worst customer loyalty performance results in the various companies and businesses. For example, the homeowners’ insurance and auto insurance sectors were both lead by USAA at 71 percent and 74 percent respectively.

On the other hand, the majority of the largest health insurance companies showed just as many promoters as there were detractors, bringing the NPS industry average to only 4 percent (not including the 0% from the Kaiser Permanente sector leader). Kaiser Permanente stood out once more in 2012 with a 33 percent NPS as a result of its unique business model that brings health care delivery and insurance coverage together in a single service.

State Farm topped the life insurance sector at 28 percent.

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