Bundlers of Joy: Satisfaction with Home Insurers at 12-Year High

October 8, 2012

Overall customer satisfaction with homeowners insurance companies is the highest in the 12 years J.D. Power and Associates has measured it, driven in part by the bundling auto and homeowners policies.

Overall satisfaction averaged 785 in 2012 (on a 1,000-point scale), up 16 points from 2011, according to the research firm.

Additionally, satisfaction has improved by 19 points among customers who bundle auto and homeowners policies with the same insurer, compared with an improvement of 10 points among customers who have their auto policy with another insurer, according to J.D. Power and Associates’ “2012 U.S. National Homeowners Insurance Study.”

Now in its twelfth year, the study measures customer satisfaction by examining five factors: billing and payment; claims; interaction; policy offerings; and price.

Satisfaction is higher in all five factors year over year, with the greatest gains in policy offerings (+35 points) and billing and payment factors (+27 points). The gains in policy offerings are more pronounced among customers who bundle auto and homeowners policies (+39 points) than among those who have their auto policy with another insurer (+25 points). Competitiveness of discounts and variety of coverage options are key differentiators among customers who bundle insurance.

“The increase in satisfaction with policy offerings is directly related to perceptions that insurers are doing a better job in offering the right coverage options at competitive prices when policies are bundled,” said Jeremy Bowler, senior director of the insurance practice.

Not only does bundling increase satisfaction with homeowners insurers, but it also increases customers’ intent to renew their policy. Among customers who have homeowners insurance only, 28 percent say they “definitely will” renew with their insurer, versus 46 percent of customers who bundle two policies, and 66 percent when four or more policies are bundled.

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Insurance Journal West October 8, 2012
October 8, 2012
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