The latest “2025 U.S. Auto Insurance Study” released by J.D. Power shows that customer satisfaction has declined for the second consecutive year, with the overall score dropping from 646 points to 644 points (out of 1000 points). It is particularly worth noting that the loyalty of high lifetime value customers (with high annual premiums, long policy periods, and multiple policyholders) is relatively low, with only 51% indicating “definitely will renew”, which is lower than the 53% and 54% of medium and low value customers respectively. J.D. Power pointed out that insurance companies need to enhance the omni-channel service experience to retain such high-value customers, especially against the backdrop of rising rates in recent years.
In regional rankings, small or regional insurance companies dominate. Amica retained the top spot in New England with 735 points, while NJM Insurance and Erie Insurance led in the Mid-Atlantic and southeastern regions with 721 and 718 points respectively. Erie Insurance has ranked first in the North-Central region for five consecutive years. In contrast, among national insurance companies, only Allstate and GEICO are tied for first place in Florida, highlighting their shortcomings in personalized services. The research emphasizes that seamless cross-channel experiences and trust are key drivers of customer satisfaction.
Nationwide topped the insurance rating based on usage (UBI) with 698 points for the second consecutive year. This score covers factors such as plan Settings, participation convenience, and the practicality of information. J.D. Power pointed out that although price is the primary reason for customers to choose insurance, good service and claims experience are the core of retention. As the industry shifts to a growth model, insurance companies need to balance profits and customer experience to cope with the increasingly fierce market competition.
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