Happy Customers Are Loyal Customers 

That was the headline in The Standard, the New England-published insurance mag (September 7, 2007, page 15).  The article was reporting on an annual customer satisfaction study conducted by J. D. Power & Associates. The annual study examines national auto insurers, and ranks them based on customer interaction, policy offerings, billing and payment, price, and claims. 

Satisfaction translates to retention 

Among customers who indicated high levels of satisfaction with their insurers overall, 88% said they “definitely would” renew their policy with their auto insurance provider.  On the other hand, only 16% of customers who reported low levels of satisfaction said they would definitely renew their policy. The J. D. Power study found that the average policyholder had been with their insurance provider for about 10 years. 

Ways to build satisfaction and retention 

Jeremy Bowler, senior director of insurance practice at J. D. Power, says that business practices such as annual policy reviews, loyalty discounts, proactively providing customers with helpful information pertaining to their policies, and enhancing Web site experience are all ways to build customer satisfaction and policy renewal rates.