J.D. Power and Associates Reports: Auto Insurance Claims Satisfaction Increases as Claimants Are Being Paid Faster

Thu Jan 24, 2013 2:36pm EST

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Length of Time Vehicles Are in a Repair Shop Increases, Extending the Claims
Process
WESTLAKE VILLAGE, Calif.,  Jan. 24, 2013  /PRNewswire/ -- As repairable and
total loss claims are being paid faster, overall claimant satisfaction with the
auto insurance claims process increases in the fourth quarter of 2012, compared
with the fourth quarter of 2011, according to the J.D. Power and Associates 2013
U.S. Auto Claims Satisfaction StudySM-Wave 1 released today.

(Logo:  http://photos.prnewswire.com/prnh/20050527/LAF028LOGO-a)

The study measures claimant satisfaction with the claims experience for auto
physical damage loss. Depending on the complexity of the claim, a claimant may
experience some or all of the following, which are measured in the study: first
notice of loss; claim service interaction; damage appraisal; repair process;
rental experience; and settlement.

Overall, claimant satisfaction with the auto claims process in the fourth
quarter of 2012 has increased by six points to 861 (on a 1,000-point scale) from
the fourth quarter of 2011, primarily due to an 11-point increase in settlement
satisfaction. Contributing to the improvement in settlement satisfaction are
slight increases in the ratings of two attributes in this factor: fairness of
the claim settlement and timing of the settlement.  

The study finds that the average time to pay claimants has decreased to 13.9
days in the fourth quarter of 2012, down from 16.4 days in the same period of
2011. While the average time to pay claimants for a repairable claim (11.8 days)
has decreased by 1.3 days from the fourth quarter of 2011, the largest decrease
is in the time it takes to pay total-loss claims, down by an average of 5.1 days
to 18.5 days.  

"Regardless of the claim type, the faster the claimant is paid and can move
forward with a repair or to replace their vehicle, the more likely they are to
be satisfied," said  Jeremy Bowler, senior director of the insurance practice at
J.D. Power and Associates. "In addition, satisfaction with the claims
professional is at an all-time high, indicating that the process is becoming
smoother, with more frequent updates throughout contributing to a much more
satisfying experience."

Interestingly, while overall claim satisfaction increases and the time it takes
to pay claimants decreases, the average cycle time of the vehicle repair
increases by 1.2 days to 13.5 days in the fourth quarter of 2012, compared with
12.3 days in the fourth quarter of 2011.  

Satisfaction with the repair process is 862, a decrease of two points from the
fourth quarter of 2011. Contributing to lower satisfaction is a decline in the
percentage of vehicles being fixed right the first time-89 percent in the fourth
quarter of 2012, compared with 91 percent in the fourth quarter of 2011.  

"While insurers have made significant progress in the past 12 months to improve
the efficiency of the claims process, the repair providers have not kept pace,"
said Bowler. "Failure to repair a vehicle correctly is critical to the customer
experience as average satisfaction scores tumble over one hundred points for
those who had to bring their vehicle back for repeat repairs."

On average, claimants who take their vehicle to a non-direct repair provider
wait 16.0 days to get their vehicle back, 2.9 days longer than when they take
their vehicle to a direct repair provider (13.1 days, on average). The gap in
time between a direct repair provider and non-direct repair provider in the
fourth quarter of 2012 has increased from only 1.8 days in the same period in
2011.   

The 2013 U.S. Auto Claims Satisfaction Study-Wave 1 is based on responses from
more than 3,000 auto insurance customers who settled a claim within the past 6
months. The study excludes claimants whose vehicle incurred only
glass/windshield damage or was stolen, or who only filed roadside assistance
claims. Survey data for Wave 1 of the study was gathered in  December 2012.

About J.D. Power and Associates

Headquartered in  Westlake Village, Calif., J.D. Power and Associates is a
global marketing information services company providing forecasting, performance
improvement, social media and customer satisfaction insights and solutions. The
company's quality and satisfaction measurements are based on responses from
millions of consumers annually. For more information on car reviews and ratings,
car insurance, health insurance, cell phone ratings, and more, please visit 
JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill
Companies.

About The McGraw-Hill Companies  

The McGraw-Hill Companies (NYSE: MHP), a financial intelligence and education
company, signed an agreement to sell its McGraw-Hill Education business to
investment funds affiliated with Apollo Global Management, LLC in  November
2012. Following the sale closing, expected in early 2013, the Company will be
renamed McGraw Hill Financial (subject to shareholder approval) and will be a
powerhouse in benchmarks, content and analytics for the global capital and
commodity markets. The Company's leading brands will include: Standard & Poor's,
S&P Capital IQ, S&P Dow Jones Indices, Platts, Crisil, J.D. Power and
Associates, McGraw-Hill Construction and Aviation Week. The Company will have
approximately 17,000 employees in more than 30 countries.  Additional
information is available at  www.mcgraw-hill.com.        

J.D. Power and Associates Media Relations Contacts:
Jeff Perlman; Brandware Public Relations;  Woodland Hills, Calif.; (818)
598-1115;  jperlman@brandwarepr.com 
Syvetril Perryman;  Westlake Village, Calif.; (805) 418-8103; 
media.relations@jdpa.com

No advertising or other promotional use can be made of the information in this
release without the express prior written consent of J.D. Power and Associates. 
www.jdpower.com/corporate

SOURCE  J.D. Power and Associates

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