J.D. Power Reports:
Gen Y Least Satisfied among Generational Segments with Homeowners and Renters Insurance
Amica Mutual Ranks Highest in Homeowners Insurance Customer Satisfaction;
GEICO Ranks Highest in Renters Insurance; State Farm Ranks Highest in Individual Life Insurance
WESTLAKE VILLAGE, Calif.: 18 September 2014 — Gen Y customers—or Millennials—who comprise the
largest group of homebuyers and renters in the United States, are more critical of their homeowners and
renters insurance experiences than any other generational group, according to the J.D. Power 2014 U.S.
Household Insurance StudySM released today.
The study examines overall customer satisfaction with three distinct personal insurance product lines:
homeowners, renters and individual life insurance. Satisfaction in the homeowners and renters insurance
segments is measured by examining five factors: interaction; policy offerings; price; billing and payment;
and claims. Satisfaction in the individual life insurance segment is measured by examining four factors:
price; policy offerings; interaction, which includes three subfactors—call center, website and local
agent/financial advisor; and billing and payment.
Gen Y consumers—those born between 1977 and 1994—are the least satisfied among the generational
groups with their homeowners insurance experience. Satisfaction with their homeowners insurer among
Gen Y customers averages 755 (on a 1,000-point scale), while satisfaction with their renters insurance
provider averages 784. In contrast, satisfaction with homeowners insurance is highest among Pre-Boomers
(born before 1946) at 846, and satisfaction with renters insurance is highest among Boomers (born 19461964) at 829.
Comparing the two largest generational segments, homeowners satisfaction among Gen Y customers is
lower across all five study factors than among Boomers, most notably in interaction (-63 points) and claims
(-59).
Although Gen Y is not the least satisfied generational group when it comes to the individual life insurance
experience, customers in this segment represent the largest percentage of first-time purchasers of a life
product. They have demonstrably different service expectations and are more apt to use online purchase
channels that other generational groups.
“Millennials are a critical demographic for insurance companies, given that they are the largest group of
homebuyers and renters, as well as the largest group of prospective life customers,” said Valerie Monet,
director of the insurance practice at J.D. Power. “Insurers in one or all of these product categories need to
pay very close attention to Millennials and adapt their business model to meet the needs of this large
segment, which often involves evaluating the usability of their website and finding new ways to
communicate with customers, such as through the use of email, apps and online chat.”
Insurers that are most successful in understanding and meeting the expectations of Gen Y customers have a
higher rate of executing on the following service practices than insurers less successful in understanding
Gen Y needs: informing customers of other products and services; providing access to policy information
(Page 1 of 3)
online; ensuring complete understanding of the bill; limiting bill errors; resolving issues in one contact; and
limiting customer-reported problems.
“In short, insurers benefit from ensuring that their Gen Y customers are well informed, and that there are
no issues or problems in servicing their policy,” said Monet.
KEY FINDINGS
Homeowners Insurance
 Overall customer satisfaction with homeowner insurers improves to 790 in 2014, up from 787 in
2013.
 The increase in satisfaction in 2014 is driven largely by a significant 7-point improvement in the
price factor.
 The study finds that 60 percent of customers in 2014 indicate their homeowners insurance
premiums have remained the same during the past 12 months, up from 58 percent in 2013.
 The proportion of customers who experience an insurer-initiated premium increase drops slightly
to 29 percent in 2014 from 30 percent in 2013.
 Interaction, the leading driver of customer satisfaction with an insurer, has an overall score of 832.
However, 27 percent of customers in 2014 have to wait to speak with an agent when they call, up
from 22 percent in 2013; and 13 percent of customers are transferred to another agency
representative, an increase from 10 percent in 2013.
Renters Insurance
 Overall satisfaction among renters insurance customers drops to 802 in 2014 from 809 in 2013.
The leading drivers of that decline are lower scores in the interaction and billing and payment
factors.
 The largest gaps in satisfaction between renter and homeowner insurance customers are in the
price and policy offerings factors: price satisfaction is 35 points higher among renters insurance
customers, and policy offerings satisfaction is 16 points higher among homeowners insurance
customers.
Life Insurance
 Overall customer satisfaction among individual life insurance customers averages 763 in 2014.
 Satisfaction among Pre-Boomers and Gen Y are similar across most factors. Among the subfactors,
satisfaction among Pre-Boomers and Gen Y is highest in local agent/financial advisor.
 Among Gen Y customers, 60 percent indicate that they have shopped for life insurance coverage in
the past three years. Among those who have shopped, 50 percent of Gen Y customers obtained
quotes from at least two insurers.
 While 86 percent of Boomers don’t plan to increase their individual life insurance coverage in the
future, 33 percent of Gen Y customers plan to convert or upgrade their current policy and another
19 percent plan to add a policy with their insurer.
Insurance rankings
Amica Mutual ranks highest in the homeowners insurance segment with a score of 839. Amica Mutual
performs particularly well in all five factors of overall satisfaction. Auto-Owners Insurance ranks second
(829), followed by State Farm (813), Erie Insurance (810) and American Family (805).
GEICO ranks highest in the renters insurance segment with a score of 811, followed closely by State Farm at
810. GEICO performs particularly well in the policy offerings, price and billing and payment factors, while
State Farm performs particularly well in the interaction factor.
(Page 2 of 3)
State Farm ranks highest in the life insurance segment with a score of 823, performing particularly well in
all four factors. Northwestern Mutual ranks second (815), followed by Pacific Life Group (792), Allstate
(785) and Nationwide (783).
The 2014 U.S. Household Insurance Study is based on 22,934 responses from customers who have one or
more of the following insurance product lines: homeowners; renters; and individual life insurance. The
study was fielded in June and July 2014.
Media Relations Contacts
Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; 818-317-3070;
[email protected]
John Tews; Troy, Mich.; 248-680-6218; [email protected]
About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info
About McGraw Hill Financial www.mhfi.com
# # #
(Page 3 of 3)
Note: Three charts follows.
Year / Project / Study Name
J.D. Power
2014 U.S. Household Insurance StudySM
Customer Satisfaction Index Ranking
Homeowners Insurance
(Based on a 1,000-point scale)
600
Amica Mutual
Auto-Owners Insurance
State Farm
Erie Insurance
American Family
Auto Club of Southern California Insurance Group
The Hartford
COUNTRY
Mercury
Homeowners Insurance Average
Allstate
CSAA Insurance Group
GEICO
Nationwide
Safeco
Farmers
MetLife
Liberty Mutual
Travelers
Automobile Club Group
Progressive
The Hanover
700
800
839
829
813
810
805
804
795
792
791
790
789
788
788
780
773
772
770
767
764
763
763
697
*USAA
*USAA is an insurance provider open only to U.S. military personnel and their families, and
therefore is not included in the rankings.
Note: Included in the study but not award-eligible due to localized availability and/or not
meeting minimum sample requirements are Chubb; Cincinnati Insurance; Encompass;
Fireman’s Fund; Homesite; Shelter; and Tennessee Farm Bureau.
Source: J.D. Power 2014 U.S. Household Insurance StudySM
900 1000
JDPower.com
Power Circle RatingsTM
for consumers:
903
Power Circle Ratings Legend
Among the best
Better than most
About average
The rest
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is
release or J.D. Power survey results without the express prior written consent of J.D. Power.
Year / Project / Study Name
J.D. Power
2014 U.S. Household Insurance StudySM
Customer Satisfaction Index Ranking
Renters Insurance
JDPower.com
Power Circle RatingsTM
for consumers:
(Based on a 1,000-point scale)
700
750
800
850
GEICO
811
State Farm
810
Renters Insurance Average
802
Nationwide
799
Progressive
796
Travelers
794
Liberty Mutual
789
Allstate
786
Safeco
American Family
Farmers
900
780
776
767
*USAA
*USAA is an insurance provider open only to U.S. military personnel and their families, and
therefore is not included in the rankings.
Note: Included in the study but not award-eligible due to not meeting minimum sample
requirements are: Amica Mutual; Auto Club of Southern California Insurance Group;
Automobile Club Group; CSAA Insurance Group; Erie Insurance; The Hartford; and MetLife.
Source: J.D. Power 2014 U.S. Household Insurance StudySM
898
Power Circle Ratings Legend
Among the best
Better than most
About average
The rest
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is
release or J.D. Power survey results without the express prior written consent of J.D. Power.
Year / Project / Study Name
J.D. Power
2014 U.S. Household Insurance StudySM
Customer Satisfaction Index Ranking
Life Insurance
(Based on a 1,000-point scale)
700
State Farm
Northwestern Mutual
Pacific Life Group
Allstate
Nationwide
Mutual of Omaha
New York Life
Massachusetts Mutual (MassMutual)
Industry Average
Guardian Life Group
Principal Financial
John Hancock
Prudential
ING
Genworth Financial Group
Transamerica (AEGON)
AIG
MetLife
Protective Life Group
AXA Financial Group
Lincoln Financial Group
Primerica
750
800
850
JDPower.com
Power Circle RatingsTM
for consumers:
900
823
815
792
785
783
782
772
765
763
762
760
758
757
755
753
752
747
747
744
738
736
726
*USAA
*USAA is an insurance provider open only to U.S. military personnel and their families, and
therefore is not included in the rankings.
Note: Included in the study but not award-eligible due to small market share and/or not
meeting minimum sample requirements are AAA Life Insurance, American Family, Aviva USA
Group, Liberty Mutual, and Midland National Life Insurance Company.
Source: J.D. Power 2014 U.S. Household Insurance StudySM
898
Power Circle Ratings Legend
Among the best
Better than most
About average
The rest
Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying
J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores,
and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is
release or J.D. Power survey results without the express prior written consent of J.D. Power.