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Erie Insurance Ranks Highest in Customer Satisfaction for Fifth Consecutive Year

Facing Modest Rate Increases, Auto Insurers Increase Reliance on Service, Agents, J.D. Power Finds
Erie Insurance Ranks Highest in Customer Satisfaction for Fifth Consecutive Year


COSTA MESA, Calif.: 1 May 2017 — Amid a second straight year of stagnant auto insurance shopping
activity and modest rate increases, auto insurance companies have grown increasingly reliant on great
customer service, personalized advice and strong agents to win over their customers, according to the J.D.
Power 2017 U.S. Insurance Shopping Study,SM released today.


With average premiums increasing by a modest 2‐3% annually, new insurance shopping rates flat and new
customer acquisition rates unchanged, auto insurers are faced with the challenge of resisting
commoditization. The study finds that as auto insurers struggle to compete on price, they are being forced
to differentiate based on factors such as brand reputation, agent recommendations, product and service to
drive new business sales. Communication remains critical, as the key performance indicator (KPI) that has
the greatest influence on customer satisfaction in this year’s study is ensuring that customers completely
understand their coverage.


“The auto insurance industry is at an inflection point where customer patterns and behaviors are on the
verge of shifting,” said Greg Hoeg, vice president of U.S. insurance operations at J.D. Power. “To survive
this period of price stagnation, insurers must develop strategies to be able to better differentiate not just to
acquire new customers, but also to acquire customers with desirable risk profiles in order to maintain
profitability.”


Key findings of the 2017 study include:

Auto insurance market shopping stagnates: This year sees a continuation of the slowdown in
shopping activity that was first noted in 2016. Average premium rates have increased just 2‐3%;
customer acquisition rates are flat; new quote volume is flat; and the total number of insurance
shoppers is largely unchanged from the last year.

Price is more influential in brand consideration and quoting: Despite stagnant pricing, price
remains a driver in every stage of the acquisition process, meaning insurers must always take it
into consideration to be competitive in the market. For example, the influence of price on a
shopper’s decision to consider and quote a brand has increased 5 percentage points in each of the
past two years. As a result, the importance of price has surpassed that of a good past service
experience when a shopper considers or quotes a brand.


Agents continue to play key role: Agent recommendations have become an increasingly
important driver of customer consideration and quote generation. Shoppers are also increasingly
reliant on agent recommendations when considering and quoting insurers, compared to 2015 (a 9‐
and 10‐percentage point increase, respectively).


Communication is critical driver of satisfaction: The KPIs affecting the purchase experience
index the most are ensuring the customer completely understands coverage; providing guidance
and/or tools for selecting the right coverage; and ensuring customers understand premium
calculations.


Study Rankings
Erie Insurance ranks highest among auto insurers in providing a satisfying purchase experience, with a
score of 879. This marks the fifth consecutive year Erie Insurance has ranked highest in the study.
American Family ranks second (869); The Hartford third (861); Automobile Club Group fourth (852);
and Amica Mutual fifth (850).


Now in its 11th year, the U.S. Insurance Shopping Study measures auto insurance shopping, purchase
behavior and purchase experience satisfaction among customers who recently purchased insurance.
Satisfaction is measured in three factors (in order of importance): price, distribution channel and policy
offerings.


The study is based on responses from more than 16,400 shoppers who requested an auto insurance price
quote from at least one competitive insurer in the past nine months and includes more than 50,000 unique
customer evaluations of insurers. The study was fielded in April, July and October 2016 and January 2017.


For more information about the U.S. Insurance Shopping Study, visit
http://www.jdpower.com/resource/jd‐power‐us‐insurance‐shopping‐study.


See the online press release at http://www.jdpower.com/pr‐id/2017050.


J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These
capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability.
Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South
America, Asia Pacific and Europe.


Media Relations Contacts
Geno Effler; Costa Mesa, Calif.; 714‐621‐6224; media.relations@jdpa.com
John Roderick; St. James, N.Y.; 631‐584‐2200; john@jroderick.com
About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about‐us/press‐release‐info

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