Customer satisfaction with homeowners insurance hits record high ...

Satisfaction with homeowners insurance companies increases as more policies are bundled, according to a study released Thursday.

The 12th annual J.D. Power and Associates 2012 U.S. National Homeowners Insurance Study measures customer satisfaction based on five factors: billing and payment, claims, interaction, policy offerings and price. This year?s study showed the highest satisfaction level in the study?s history, improving 16 points from last year.

Using a 1,000-point scale, the study shows an improvement of 19 points among customers who bundle auto and home insurance policies with the same insurer. Customer satisfaction among those who have their auto policy with a separate insurer rose 10 points.

Bundling also increases intent to renew policies, the study noted. About 28% of those who have homeowners insurance only said they ?definitely will? renew, while 46% of those who bundle said they ?definitely will.? And when four or more policies are bundled, that increases to 66%.

The overall retention rate is 89%, but among customers who bundle that rises to 95%. The report shows the benefit of bundling rises when an auto policy is added more than adding an umbrella policy. And while about 25% of customers have umbrella policies, which are more prevalent among those with high incomes, those policies have a high rate of bundling. Adding life insurance, however, provides no increase in stated retention, according to the report.

Overall, satisfaction in all five categories increased this year, with the greatest gains in policy offerings and billing and payment factors. The report notes that the competitiveness of discounts and the variety of coverage options are key differentiators among those who bundle insurance.

Factors that influence product density include multi-product discounts ? the single largest driver with more than half the influence. Customer service also is a large driver, as is age, with younger generations bundling more, and having a local agent.

Jeremy Bowler, senior director of J.D. Power?s insurance practice, said insurance companies have an opportunity to create loyal customers by bundling policies. Once bundled, customers are more likely to keep the policies bundled and to add more products in the future, he added.

The study showed that State Farm Insurance has the highest rate of bundling at 80 %, while Amica Mutual ranked highest in customer satisfaction for the 11th year.

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Source: http://ifawebnews.com/2012/09/27/customer-satisfaction-with-homeowners-insurance-hits-record-high/

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