Customer satisfaction with homeowners' claims at all-time high

Homeowners’ satisfaction with the property claims process has reached a record high, according to a new study by J.D. Power.

Homeowners are more satisfied than ever with the process, and the majority of the insurers evaluated in the study saw year-over-year improvements in customer satisfaction, J.D. Power reported.

“Home insurers have spent a great deal of time and money refining their claims-processing capabilities through a combination of improved client relationship management, enhanced technology and improved quality control,” said David Pieffer, property and casualty lead for insurance intelligence at J.D. Power. “Getting this formula right is critical for insurers because any customer perception of undue effort or unnecessary delays experienced on the part of the customer in the claims process is directly correlated with increased shopping for a new insurer.”

Among the study’s key findings:

• Overall customer satisfaction with homeowners’ property insurance claims is 881 (on a 1,000-point scale), a record high and a significant increase from last year.
   
• Premium increases and cumbersome claims processes are likely to drive customers to other carriers. When insurers hike premiums in response to claims and homeowners feel the claims process is too onerous, overall satisfaction drops by 85 points and customers become 13.5 times more likely to shop for a new policy.
   
• Digital tools have a positive effect on customers’ perception of the convenience of the claims process, but most claimants aren’t ready for an entirely digital claims process. Twenty-seven per cent (27%) still prefer the entire process to be handled offline, and just 4% say they would prefer an online-only claims experience