We were looking at the results of JD Powers’ Annual Personal Auto Insurance Claims Satisfaction survey recently and it provoked a thought:
What does it mean for an insurance company to satisfy customers?
Do carriers satisfy customers more when they pay unjustified claims? They certainly upset them when they deny a fraudulent one. How about when they raise rates to reflect the actual economics of the business?
The reason we ask is because according to JD Powers the current market leader, Progressive, earns some of the lowest customer satisfaction ratings among all major carriers while consistently achieving superior profitability and premium growth. Could these two seemingly contradictory facts both make sense? Of course, that’s the nature of insurance.
But it’s important to remember that there are customers that carriers should never satisfy because disappointing the dishonest is the only way they can keep premiums affordable for everyone else. It’s a pity customer satisfaction surveys can’t distinguish between good customers and the ones no one wants.
VeracityID offers idFusionTM: an automated risk selection solution that allows business teams to detect and rapidly compose highly targeted solutions to stop hundreds of different errors, premium leaks and frauds – all before a new risk is bound. idFusion integrates seamlessly with personal auto and homeowners core systems.