Consumers Who File a Life Insurance Claim More Likely to Switch Carriers or Contracts Than Those Who Haven't Filed a Claim
Share This Page
Procedures to Expedite Disbursement Payments Are Helping Increase Life Insurance Claims Customer Satisfaction
TOKYO: 14 March 2012 — Forty percent of consumers who file a life insurance claims indicate that they are considering switching insurance providers or their insurance contract with their current provider, according to the J.D. Power Asia Pacific 2012 Japan Life Insurance Claim Customer Satisfaction StudySM.
The study, now in its second year, measures satisfaction with insurance companies in the area of claim processing by examining three factors: claim support, settlement and claim filling process. Among the three factors, claim support has the greatest impact on overall satisfaction.
Consumers who file a claim are 1.5 times more likely to switch insurance providers or their contract with their current provider than those who did not file a claim. However, only 30 percent "highly satisfied" consumers indicate an intention to switch, compared with 50 percent who were less satisfied.
The study finds that 80 percent of consumers who filed a life insurance claims also held contracts with insurance companies other than the one with which they filed the claim.
"This shows that filing a claim for insurance disbursement is highly likely to be the catalyst for rethinking the insurance needs," said Ryutaro Nakao, manager at J.D. Power Asia Pacific, Tokyo. "Therefore, it is vital for the insurance company to provide a highly satisfying experience for their customers during the claim process, in order to reduce the likelihood of switching."
Among customers who claimed an insurance disbursement, satisfaction for those that filed a life support insurance claim increased 30 index points to 607 (on a 1,000-point scale) compared with the 2011 study, while satisfaction for those that filed a medical benefit claim increased 29 points to 647.
Since the Great East Japan Earthquake in March 2011, life insurance companies have implemented procedures to expedite disbursement payments. Since those processes were put in place, the percentage of consumers who received a disbursement payment within one week of filing their insurance claim increased to 29 percent from 23 percent in 2011, while those receiving disbursement within one week for a life support claim rose to 35 percent from 26 percent in 2011.
"The time it takes to get a disbursement payment is crucial to customer satisfaction. Insurance companies, on average, have gotten more prompt in making the payments," said Ryutaro. "Because consumers' expectations have changed, life insurance companies need to continue to provide prompt payments in order to maintain a high level of customer satisfaction."
Sony Life Insurance ranks highest among the 10 insurance companies included in the life support insurance segment with a score of 645. American Life Insurance Company (MetLife Alico) ranks second with a score of 631 and American Family Life Assurance Company of Columbus (Aflac) ranks third with 618
Among the 20 insurance companies included in the medical benefits segment, The Prudential Life Insurance ranks highest for the second consecutive year with a score of 719. Following in the rankings are Sony Life Insurance (698 points) Fukoku Mutual Life Insurance (673 points).
The 2012 Life Insurance Claim Customer Satisfaction Study includes responses from 7,549 policyholders who filed claims for life insurance benefits during the past year. The study was fielded in November 2011.
About J.D. Power Asia Pacific
J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: email@example.com
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. 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
McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial's leading brands include Standard & Poor's Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and J.D. Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.
Follow us on Twitter: @JDPower
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