The Insurance Industry’s Rising Reputation

 
 

The insurance industry has a crummy reputation — for good reason. There aren’t many people who walk away from a claim feeling like they got their money’s worth while enjoying a pleasant experience.

Things may be improving, however. From 2011 to 2013, the insurance industry jumped from 58.5% to 65.0% in research firm Temkin’s annual “Experience Ratings,” which attempt to quantify customer experience approval rates.

Perhaps even more revealing is the fact that only six listed industries rank higher than insurance (hotels, banks, retailers, parcel delivery services, fast food chains and grocery chains). Among those that are now regarded more poorly than insurance are wireless carriers, health plans, airlines, auto dealers and appliance makers.

However, there remains a large disparity between how the best and worst companies are regarded. USAA, for example, leads the industry at 77% (a four-point jump over 2012) while 21st Century finished last among insurers in the study (and 242nd overall in the list of companies) at 49%.

High-profile companies including MetLife, Travelers and The Hartford also finished below the industry average. The seven-point drop over the past year for The Hartford was the largest decline in the study of insurers.

 
Jared Wade

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About the Author

Jared Wade is a freelance writer and the former senior editor of Risk Management.

 
 

1 Comment

  • Could market share of the companies impact the results?
    It's not clear how these results were tabulated….was participation in the study optional? Or did they take, say, a random sampling of 100 policy holders and base the customer experience on the results of all 100 – good and bad? If the former, then it would lend itself to what we call adverse selection. Usually a dissatisfied person will voice their grievance more readily than someone who has had a good experience. And with more policy holders, the larger insurers (like Travelers, Hartford, MetLife) may be more likely to have their rating skewed toward the negative. Thoughts?

     
 

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