Property Claims Satisfaction Continues to Improve

Overall satisfaction among homeowners who filed a property claim improved for the second consecutive year, according to the J.D. Power 2014 Property Claims Satisfaction Study.

The study, now in its seventh year, measures satisfaction with the property claims experience among insurance customers who filed a claim for damages covered under their homeowners’ policy by examining five factors: settlement; first notice of loss; estimation process; service interaction; and repair process.

Superstorm Sandy’s effects are still being felt in the insurance industry, where customers are expressing their relative dissatisfaction with the claims process. Satisfaction among those who filed a claim for damage caused by Superstorm Sandy averages just 830 in 2014, down from 846 among Sandy-related claimants surveyed shortly after the storm. Overall, however, satisfaction among homeowners insurance customers who filed a property claim between April 2012 and January 2014 averages 840 (on a 1,000-point scale) – up from 836 in the 2013 study.

Compared with 2013, research findings in 2014 show that homeowners insurance customers who filed a non-catastrophic claim in the past year more often received a thorough explanation of their coverage when first reporting their loss, were more promptly notified of what damages were covered and received their settlement nearly four days faster.

The study finds that 15 percent of all claims reported involved a third-party damage inspection, down 5 percentage points from the 2013 study.

Some additional key findings:

• Overall satisfaction with non-catastrophic claims increased by 11 points in 2014, compared with 2013 (843 vs. 832).
• Overall satisfaction improved in four of the five factors year over year, while satisfaction with first notice of loss was the same as in 2013.
• When insurance companies effectively communicate with claimants, those claimants are less likely to escalate their claim to a supervisor. When a supervisor becomes involved, overall customer satisfaction drops by more than 160 points.
• Nearly one-fourth (23 percent) of Gen Y claimants escalate their claim to a supervisor, compared with 8 percent of Boomers.

The study was based on 5,500 responses from customers who filed a property claim between April 2012 and Jan. 2014.