J.D. Power: Amica ranks No. 1 in customer satisfaction despite insurance industry challenges

AMICA MUTUAL INSURANCE CO. boasted the best customer satisfaction on home insurance property claims in 2022, according to a new survey by J.D. Power. / COURTESY J.D. POWER

PROVIDENCE – Amica Mutual Insurance Co. boasted the best customer satisfaction rankings in 2022, despite industry challenges that strained customer and insurer interactions across the board, according to a new survey by J.D. Power.

The Rhode Island-based insurance company tied for first with The Hartford Mutual Insurance Co. for the highest average customer satisfaction rating on home insurance property claims, according to J.D. Power’s 2022 U.S. Property Claims Satisfaction Survey.

While Amica and Hartford both scored 886 out of a 1,000-point scale, insurers across the board saw their numbers drop this year compared with prior years amid supply chain disruptions and workforce shortages, the survey stated. Indeed, the average satisfaction score across insurers, 871, was the lowest in the last five years of the survey.

Lower rankings reflected more-complicated claims processes, communications challenges and slower cycle times, the survey stated. Insurers have been hit hard by the economic ramifications of the pandemic, with large volumes of claims and not enough workers to service them. For example, it took 17.8 days on average for claimants to have repairs completed this year, compared with the 2.9-day average a year ago.

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Supply chain disruptions and the transition to digital operations have also dampened insurers’ success with their customers. Email and mobile apps are increasingly the preferred communication methods for insurers to talk to customers, though only 11% of customers are using digital tools for all steps of their claims process. The resulting hybrid digital experience has added complications and time to the experience, which likely contributed to lower satisfaction scores, the survey stated.

“Insurers really struggled last year, partly due to circumstances beyond their control,” Mark Garrett, director, insurance intelligence at J.D. Power, said in a statement. “Longer cycle times, material shortages and personnel availability put added pressure on insurers to keep customers informed and expectations managed. Digital tools were a pivotal part of the process as customers increasingly turned to digital channels by submitting photos to assist in the estimation process and were far more willing to use the tools for status updates. Unfortunately, these digital tools are not always meeting expectations, resulting in support staff needing to get involved. That disconnect creates a major drag on customer satisfaction.”

The study measures satisfaction with property claims experiences based on five factors: settlement, claim servicing, first notice of loss, estimation process and repair process. More than 5,700 homeowner insurance customers who filed a claim within the last nine months were surveyed for the study.

Nancy Lavin is a staff writer for the PBN. Contact her at Lavin@PBN.com.

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