Auto Claims Satisfaction Down,
But Are Drivers the Ones at Fault?
on average, to get their vehicle to the shop
[after an appraisal] compared to results
from the prior quarter,” adds Bowler.
What can an insurer do when a customer
may be influencing the claims-repair-cycle
time—which has increased to 15. 8
days in the first quarter this year
compared to 15 days in the fourth
quarter of 2011?
“Insurers need to do a better job
of managing customer expectations
for claims processing and vehicle
repair,” Bowler says.
Explain the consequences of
waiting longer to drop off a car
to the shop, says Bowler. Tell the
customer why it’s sometimes better
to wait longer for a good job to be
done, rather than a rushed job.
Repair times also increased slightly
compared to the last quarter, Bowler
notes. Insurers must rely on partners, like
a repair shop, as the point of contact with
“When the customer thinks the cycle
takes too long, they blame the shop but
hold the insurer responsible,” Bowler says.
The study is based on responses
from more than 3,700 auto-insurance
customers who filed a claim within the
last six months. It measures first notice of
loss; service interaction; appraisal; repair
process; rental experience; and settlement.
Settlement is the most important
factor in overall claims satisfaction,
but it wasn’t one of the factors that
experienced a significant decline in the
latest study. NU
BY CHAD HEMENWAY
CUSTOMER satisfaction with the auto-insurance claims experience is at its lowest
level in three quarters—but consumers may have themselves at least
partly to blame.
According to J.D. Power and
Associates’ 2012 U.S. Auto Claims
Satisfaction Study, overall customer
satisfaction declined 13 points to
842 (on a 1,000-point scale), driven
by a 19-point drop in first notice of
loss—the point at which a customer
first informs his or her insurer that
there is damage to the vehicle.
Satisfaction in service interaction
declined 16 points, and repair-process
satisfaction declined 15 points.
However, customers’ own preferences
from repairs after an accident, 47 percent
of claimants say they delayed dropping off
their vehicle at the body shop to wait for
a more convenient time. And 20 percent
indicated they waited for the
weekend or a holiday.
“Many times the car is still
drivable, so they wait,” says Jeremy
Bowler, senior director of the
global insurance practice at J.D.
Power. “The problem is that skews
how long it takes to get their car
back from the point at which they
These customers tend to have a lower
satisfaction of the claims process “as a result
of having to wait an extra day-and-a-half,
Insurers need to do
a better job of managing
customer expectations for claims
processing and vehicle repair.”
Jeremy Bowler, Senior Director,
Global Insurance Practice at
J.D. Power and Associates
have a lot to do with their satisfaction.
While they are not pleased with the amount
of time it takes to get their vehicle back
FEMA Bans Insurance Rebating on NFIP Policies
BY ARTHUR D. POSTAL
INSURANCE AGENTS selling flood- insurance policies will no longer be allowed to cede a portion of their
commissions to property owners to induce
them to purchase insurance—a practice
known as insurance rebating.
The Federal Emergency Management
Agency (FEMA) announced in an April 4
bulletin that the new policy will be effective
Oct. 1. The bulletin says the Federal
Insurance and Mitigation Administration
(FIMA) had received inquiries from
interested parties regarding the practice.