Insurance agents who only focus on homeowners insurance customers are missing a golden opportunity to build long-term relationships with renter customers as their insurance needs grow due to life or circumstance changes—such as having a family or purchasing a home or additional car—according to the J.D. Power 2013 U.S. Household Insurance and Bundling Study.
The 2013 U.S. Household Insurance and Bundling Study was based on 21,167 responses from customers who may have the following insurance product lines: homeowners; renters; individual life insurance; recreational vehicle; personal liability umbrella; and secondary residence.
KEY FINDINGS
- While 25 percent of consumers rent their primary residence, 46 percent of renters are uninsured.
- Satisfaction with insurers is higher among renters than among homeowners
- (809 vs. 787, respectively, on a 1,000-point scale).
- Price is the leading driver of the satisfaction gap: price satisfaction is a significant 45 points higher among renters than among homeowners.
- Renters place more importance on website (22 percent) and assisted online (11 percent) interaction channels than do homeowners, which is influenced by the younger customer base in the renter insurance market.
- State Farm captures the largest share of the renter insurance market (26 percent), followed by Allstate (12 percent) and USAA (10 percent).
- Customer retention rates with their current insurer are higher among renters who bundle an auto policy at 91 percent compared to 67 percent of renters who do not bundle an auto policy.
“Many insurance agents focus their time selling high-dollar products, such as auto and homeowners, with higher commissions instead of the average $200 per year renters policy,” said Jeremy Bowler, senior director of the global insurance practice at J.D. Power. “This is shortsighted because agents who satisfy the large renter population today are more likely to retain and service their growing household insurance needs over time.”
| Rankings | ||
| Overall Customer Satisfaction Scores |
J.D. Power.com Power Circle Ratings | |
| (Based on a 1,000-point scale) | For Consumers | |
| Homeowners Segment | ||
| Amica Mutual | 842 | (5) |
| State Farm | 813 | (4) |
| Auto-Owners Insurance | 812 | (4) |
| Erie Insurance | 811 | (4) |
| Automobile Club of Southern California | 808 | (4) |
| Encompass | 798 | (4) |
| American Family | 797 | (4) |
| Progressive | 796 | (4) |
| COUNTRY | 795 | (3) |
| Allstate | 789 | (3) |
| GEICO | 789 | (3) |
| The Hartford | 787 | (3) |
| Homeowners Average | 787 | (3) |
| NCNU Insurance Exchange | 786 | (3) |
| Nationwide | 780 | (3) |
| MetLife | 778 | (3) |
| Safeco | 778 | (3) |
| Automobile Club Group | 776 | (3) |
| CHUBB | 768 | (2) |
| The Hanover | 766 | (2) |
| Liberty Mutual | 762 | (2) |
| Travelers | 756 | (2) |
| __________________________ | ||
| USAA* | 894 | (5) |
| *USAA is an insurance provider open only to U.S. military personnel and their families and therefore is not included in the rankings. | ||
| Homeowners Segment: Included in the study but not award-eligible due to localized availability and/or not meeting minimum sample requirements are Alfa Insurance, Allied, Cincinnati Insurance, Fireman’s Fund, Homesite, Mercury, North Carolina Farm Bureau, Shelter and Tennessee Farm Bureau. | ||
| Renters Segment | ||
| Nationwide | 823 | (5) |
| American Family | 817 | (5) |
| Automobile Club of Southern California | 814 | (3) |
| State Farm | 811 | (3) |
| Renters Average | 809 | (3) |
| Allstate | 807 | (3) |
| Progressive | 799 | (3) |
| GEICO | 794 | (2) |
| Liberty Mutual | 773 | (2) |
| Farmers | 768 | (2) |
| Travelers | 752 | (2) |
| __________________________ | ||
| USAA* | 901 | (5) |
| *USAA is an insurance provider open only to U.S. military personnel and their families and therefore is not included in the rankings. | ||
| Renters Segment: Included in the study but not ranked due to not meeting minimum sample requirements are Amica Mutual, Automobile Club Group, Erie Insurance, MetLife, NCNU Insurance Exchange, Safeco and The Hartford. | ||
Power Circle Ratings Legend
5 – Among the best
4 – Better than most
3 – About average
2 – The rest
The U.S. Household Insurance and Bundling Study study was fielded from June 10, 2013, through July 12, 2013. The study examines overall customer satisfaction in each of these product lines; however, the study only ranks performance in two personal property insurance segments—homeowners and renters. Both index scores are comprised of five factors: interaction; policy offerings; price; billing and payment; and claims.
Topics USA Auto Agencies Homeowners
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