Amica Mutual tops all other carriers in terms of homeowners insurance customer satisfaction for the second year in a row. Erie Insurance scored a similar number-one slot in terms of renter insurance, J.D. Power found in its latest 2015 industry study.
Amica scored an 834 out of a possible 1,000. Erie landed an 817. The full rankings are posted through this story and you can compare them to last year’s results here.
But the J.D. Power 2015 U.S. Household Study identified some trends among Gen Y – or younger – insurance customers that veer from previous generations’ buying patterns.
Typically, most homeowners bundle multiple policies with their insurer. But J.D. Power found that Gen Y customers typically unbundle, or split, their coverages by way of a number of insurers – at a higher rate than other generational groups.
Specifically, 65 percent of Gen Y homeowners insurance customers bundle multiple policies with their insurer. That compares to 78 percent among all other generations, J.D. Power said. What’s more, the bundle rate trend among Gen Y customers is down 5 percent since 2013. All other age groups maintained relatively stable bundle rates.
Diving deeper, J.D. Power found that Gen Y customers who bundle (779) are less satisfied than Boomers who do the same (811). About 48 percent of Gen Y customers who unbundle do so for price, and 32 percent do so for better coverage. Boomers who followed the same practice did so at 41 percent and 19 percent, respectively.
Gen Y customers also were less satisfied in terms of interaction, billing, payments and claims issued then other generations.
Also worth noting, 17 percent of Gen Y non-bundlers said they would bundle additional policies in the future. Just 17 percent of Boomers who don’t bundle said they would, according to J.D. Power.
Why does all of this data matter? It can help insurers better understand their Generation Y customers as they evolve and seek to eventually bundle, said Valery Monet, director of J.D. Power’s insurance practice.
“Understanding the challenges and opportunities that Gen Y customers represent is a key component to developing a bundling strategy,” Monet said in prepared remarks.
Source: J.D. Power