Insurers find millennials less satisfied with insurance products

MEMBERS OF THE MILLENNIAL generation showed the lowest level of satisfaction with homeowners and renters insurance, according to the latest J.D. Power customer satisfaction study. And given the size of the age cohort, the study recommends that insurers pay attention.
MEMBERS OF THE MILLENNIAL generation showed the lowest level of satisfaction with homeowners and renters insurance, according to the latest J.D. Power customer satisfaction study. And given the size of the age cohort, the study recommends that insurers pay attention.

WESTLAKE VILLAGE, Calif. – When insurers recently received the results of the J.D. Power 2014 U.S. Household Insurance Study, they got an extra tidbit of news to go along with the standard customer satisfaction data.
J.D. Power broke out responses to its yearly survey that revealed significant differences among different age cohorts, highlighted by the fact that members of the gen Y, or millennial, generation were most critical of insurance products among the four groups identified – pre-baby boomers, baby boomers, generation X and millennials.
The survey asked consumers about their satisfaction with homeowners, renters and life insurance products in the market. For all consumers, Lincoln-based Amica Mutual Insurance Co. ranked the highest among the nation’s homeowner insurers for the 13th year in a row, scoring 839 (out of 1,000), a number that was 49 points greater than the industry average of 790.
The study used answers from about 23,000 customers in five areas for the homeowners and renters insurance categories: customer interaction, policy offerings, price, billing, and payment and claims. Life insurers were ranked based on: price, policy offerings, customer interaction, and billing and payment.
The millennials, born from 1977 to 1994, were the least satisfied with the homeowners insurance products and services, with an average rating of 755 (on the 1,000 point scale). Renters insurance products provided slightly better ratings, with an average of 784.
By comparison, the greatest satisfaction for homeowners insurance was recorded by pre-baby boomers, born before 1946, with an average score of 846. The age cohort with the greatest satisfaction scores on renters insurance was the baby boomers (born from 1946 to 1964), with an average of 829. And while millennials are not the least satisfied with the individual life insurance customer experience, according to the study, they are more likely to look online for insurance products, and they are the largest percentage of first-time buyers of life insurance, meaning their preferences are critical to the industry’s long-term health.
The question of satisfaction among millennial customers is an important one, according to J.D. Power. “Millennials are a critical demographic for insurance companies, given that they are the largest group of homebuyers and renters, as well as the largest group of prospective life customers,” said Valerie Monet, director of the insurance practice at J.D. Power, in a prepared statement. Insurers “need to pay very close attention to millennials and adapt their business model to meet the needs of this large segment, which often involves evaluating the usability of their website and finding new ways to communicate with customers, such as through the use of email, apps and online chat.”
To see the full report, click HERE.

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