Property Insurance Companies Market to Recent Claimants

Few consumers enjoy the process of filing an insurance claim relating to home damage.  But accidents do happen and consumer sentiment about an insurance company is closely linked to how they are treated during the claims process. J.D. Power and Associates recently surveyed consumers who filed a homeowner’s claim to determine satisfaction levels and the likelihood of renewing with the same company. The company’s findings provide insight for insurers who want to acquire new customers and retain the ones they currently have under contract.

The survey measured client satisfaction on 10 key factors such as “clearly explaining the claims process, giving claimants an expectation of how long the claim will take and ensuring claimants know who to contact with questions.” The survey  found only 17% of consumers were happy with their claim results in all 10 areas. As a result of their experience, satisfied consumers say they have the following intentions:

  • Will definitely renew with existing insurer 71%
  • Will definitely recommend the insurer to others 67%
  • Have switched insurers 4%

When consumers have a less positive experience during the claims process, they signal their discontent by making changes as these numbers show.

  • Plan to renew with existing company 53%
  • Will definitely recommend the insurer to others 48%
  • Have already switched insurers 10%

The survey also found that consumers over age 54 were generally more satisfied with their claims experience. Another key detail points to the need for insurance companies to regularly communicate via e‑mail to consumers age 35 and under to keep them posted on the progress of the claim.

"Suffering a property loss and filing a claim tends to be an emotionally charged experience-​often more so than an auto claim," said Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates.  Insurance companies have an opportunity to win new clients by marketing to consumers who have not been satisfied with their claims processes.

[Source: Press Release. J.D. Power and Associates, 8 Jul. 2010. Web. 20 Jul. 2010] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.