Consumer satisfaction with auto insurance claims declines
Customer satisfaction with auto insurance claims declined for the first time in three quarters, J.D. Power and Associates said in a recent report.
According to the J.D. Power and Associates 2012 U.S. Auto Claims Satisfaction Study, overall customer satisfaction fell 13 points quarter-over-quarter and now stands at 842. The current mark represents the lowest satisfaction level since the third quarter of 2011.
A big drop of satisfaction (19 points) was seen in first notice of loss, when the customer connects with the auto insurance company and reports vehicle damage. But declines were also seen in service interaction, appraisal, and the repair process (-15 points).
“Forty-seven percent of claimants delayed dropping off their vehicle at the body shop to wait for a more convenient time, and 20 percent indicated waiting for weekends or holidays,” Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates, said in a statement.
Bowler went on to speak more of the connection between satisfaction and wait time.
“However, these customers tend to also have lower satisfaction as a result of having to wait an extra day and a half, on average, to get their vehicle to the shop compared to results from the prior quarter,” he said. “This suggests insurers need to do a better job of managing customer expectations for claims processing and vehicle repair times.”
According to this most recent study, the claims repair cycle time increased significantly quarter-over-quarter. The claims repair cycle time in the first quarter of 2012 stood at 15.8 days, up from an average time of 15.0 days in the fourth quarter of 2011.
“Repair times have also increased slightly from the last quarter,” Bowler said. “This, in addition to customers waiting longer for a more convenient time, or the weekend, to bring their vehicle to the repair shop, has contributed to the overall lower satisfaction scores.”
Posted in: Auto Insurance