Study: Customer satisfaction with property insurance companies plunged in 2022

CUSTOMER SATISFACTION with property insurance companies plunged in 2022 amid longer claim filing and payment times and rising costs, according to a new study by J.D. Power. Rhode Island-based Amica Mutual Insurance Co. fared better than most competitors, however, earning the second-highest score on the 1,000-point scale. / COURTESY J.D. POWER

PROVIDENCE – Property insurance companies took a major hit in 2022, with customers unhappy about rising costs, longer wait times and catastrophic losses, according to a new study by J.D. Power.

The 2023 U.S. Property Claims Satisfaction Study, which reflects customers’ experiences with major insurance companies over the course of 2022, also showed “worrying” declines in use of digital claims reporting, the first time that the number of digital claims has dropped year over year in the history of the study, according to Mark Garrett, director of insurance intelligence at J.D. Power.

“Digital tools are apparently not meeting customer needs,” Garrett said in a statement.

The latest study also showed an increase in the average claims cycle time, from 18 to 22 days. Customers who receive multiple payments faced even longer delays, waiting an average of 31.5 days after reporting a claim to receive the final payment, which is about a week longer compared with the prior year. Delays reflect more severe damage and problems with getting supplies to complete repairs, according to the study.

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Thanks to longer wait times and higher costs, eight of the major insurers ranked in the study saw their individual satisfaction scores fall compared with the prior year. However, nine other companies still saw improvements, including Rhode Island-based Amica Mutual Insurance Co., which was the second-highest ranked, with a score of 903 out of a 1,000-point scale.

Last year, Amica tied for the No. 1 spot with a score of 886.

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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