View this article online: https://www.insurancejournal.com/magazines/mag-features/2014/10/06/342103.htm
Gen Y customers – or Millennials – who comprise the largest group of homebuyers and renters in the United States, are more critical of their homeowners and renters insurance experiences than any other generational group, according to the J.D. Power 2014 U.S. Household Insurance Study.
The study examines overall customer satisfaction with three distinct personal insurance product lines: homeowners, renters and individual life insurance. Satisfaction in the homeowners and renters insurance segments is measured by examining five factors: interaction; policy offerings; price; billing and payment; and claims.
Gen Y consumers born between 1977 and 1994 are the least satisfied among the generational groups with their homeowners insurance experience. Satisfaction with their homeowners insurer averages 755 (on a 1,000-point scale), while satisfaction with their renters insurance provider averages 784. In contrast, satisfaction with homeowners insurance is highest among Pre-Boomers (born before 1946) at 846, and satisfaction with renters insurance is highest among Boomers (born 1946-1964) at 829.
Comparing the two largest generational segments, homeowners satisfaction among Gen Y customers is lower across all five study factors compared to Boomers’ satisfaction, most notably in interaction (-63 points) and claims (-59).
Overall the J.D. Power survey indicates customer satisfaction with homeowner insurers has improved to 790 in 2014, up from 787 in 2013. The increase in satisfaction in 2014 is driven largely by a seven point improvement in the price factor.
Overall satisfaction among renters insurance customers dropped to 802 in 2014 from 809 in 2013. The leading drivers of that decline are lower scores in the interaction, and billing and payment factors.
The largest gaps in satisfaction between renter and homeowner insurance customers are in price and policy offerings factors: price satisfaction is 35 points higher among renters insurance customers, and policy offerings satisfaction is 16 points higher among homeowners insurance customers.
The 2014 study is based on 22,934 responses fielded in June and July 2014.