J.D. Power Asia Pacific Reports:
Overall Customer Satisfaction with Auto Insurance Providers in India Decreases from 2010,Primarily Due to Declines in Customer Interactions at Branch Offices
New India Assurance Ranks Highest in Customer Satisfaction with Auto Insurance Providers
SINGAPORE: 29 June 2011 — Customer satisfaction with auto insurance providers has declined from 2010, with the greatest decreases occurring in the area of interactions with customers, according to the J.D. Power Asia Pacific 2011 India Auto Insurance Customer Satisfaction Index (AIS) StudySM released today.
The study, in its third year, examines auto insurance policyholder experiences with their primary insurer. Customer satisfaction is measured across six factors: interaction; claims; product/policy offerings; renewal/purchase process; billing and payment process; and premium/price for coverage offered.
Overall satisfaction averages 796 (on a 1,000-point scale) in 2011, eight points lower than in 2010. The interaction factor declines most notably, decreasing by 28 points from 2010. Within this factor, satisfaction with branch office interactions has declined the most, followed by interactions with independent agents and brokers.
The study finds that the proportion of customers who visited their insurer’s branch office has nearly doubled in 2011, compared with 2010. In 2011, 46 percent of customers indicate renewing or purchasing their policies from branch offices. In contrast, fewer than one-fourth of customers in 2010 (24%) said the same.
“The service channels of insurers are adapting to the growth in the India auto insurance market,” said Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore. “One of the changes observed during the past few years is an increase in the number of branch offices, as well as their visibility. Therefore, it becomes particularly important for insurers to ensure better customer management at branch offices, especially in terms of understanding needs and requirements, providing clear explanations of policy coverage, and courtesy and friendliness.”
The study also finds that although satisfaction with public insurers, as a whole, remains higher than that of private insurers in 2011, satisfaction with public insurers has decreased by 17 points from 2010, while satisfaction with private insurers has improved marginally by three points. However, effective communication with customers remains a concern for both public and private insurers.
New India Assurance ranks highest in satisfying auto insurance customers in 2011, achieving a score of 804 and performing particularly well in the renewal/purchase process factor. Following New India Assurance in the ranking is The Oriental Insurance, which achieves a score of 802 and performs well in the billing and payment process and renewal/ purchase process factors. New India Assurance and The Oriental Insurance are both public insurers. Following The Oriental Insurance in the rankings is ICICI Lombard, a private insurer, with a score of 801.
The study finds wide variation between regions in the proportion of customers who file claims. Approximately one-fourth of customers in the South and East regions have filed a claim with their auto insurer in 2011, compared with less than 15 percent of customers in the North and West regions. Claims satisfaction is highest among customers in the North region, with satisfaction averaging 781, compared with approximately 750 in the remaining regions. Some factors contributing to higher claims satisfaction in the North region include relatively better implementation of key communication-related practices, such as providing explanations of the claims settlement process and giving information on claim settlement timelines.
Customer satisfaction with auto insurance providers has an impact on customer intent to renew their current policies, and to purchase policies from the same provider for their next vehicle. Customers who are highly satisfied with their provider (satisfaction levels averaging above 854) are nearly twice as likely to purchase a policy from same insurance provider for their next vehicle, compared with customers who are less satisfied. Similarly, highly satisfied customers are at least 1.5 times as likely to renew their policies with the same provider.
“Auto insurance satisfaction has a profound impact on repurchase intent,” said Arora. “The auto insurance market presents huge potential in terms of customer base and revenues. Therefore, it is imperative that providers focus on elevating their quality of service and enhancing the customer experience.”
The 2011 India Auto Insurance Customer Satisfaction Index Study is based on responses from 5,284 auto insurance customers who renewed or purchased an auto insurance policy between January 2010 and April 2011 and had between 2.5 and 3.5 years of vehicle ownership experience. The study includes 15 auto insurance companies (11 private and four public providers) and was fielded between January and April 2011 in 20 cities across India.
About J.D. Power Asia Pacific
J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide performance analytics services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in Australia, China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: email@example.com.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
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