Insurers Lead in Financial Services Customer Satisfaction Rankings
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UPDATED: Mar 13, 2020
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When it comes to financial services and customer satisfaction, Life and Property insurers are ranked the highest, according to a recent study from the American Customer Satisfaction Index (ACSI).
Take this information with a grain of salt though, as we’re talking about financial services companies here…
Who’s Rated the Highest?
The ACSI report revealed that smaller life insurance companies ranked highest, up 1% to 81.
Northwestern Mutual topped the big companies, despite a small 1% dip to 80, followed by New York Life, down 3% to 78.
The largest companies in the life insurance business – Met Life and Prudential – followed closely behind the leaders with Met Life up 1% to 78 and Prudential holding steady at 77, unchanged from last year.
The ACSI report showed consistency when it came to property and casualty insurance, with results similar to last year as far as the order of rank.
State Farm led the way with an 82, which is the same as last year. Also unchanged, GEICO stayed at 81.
Progressive (79) and Allstate (78) each dropped 1 point from last year.
The big loser among the top insurers was Farmers Insurance, which dropped 3% to 76, its fourth consecutive year in the bottom spot.
It’s worth pointing out that the ACSI groups all other insurance companies (potentially hundreds) together and rates them as one.
The “all other” category comes in at an 80, which doesn’t say much for Progressive, Allstate and Farmers Insurance.
Why Life & Property Insurers Lead?
There are a couple of factors – according to Claes Fornell, founder of the ACSI, “Life and property & casualty typically do better with customers compared to health insurers because premiums are lower and policyholders have fewer reasons to interact with the insurance company, so there are fewer opportunities for things to go wrong.”
“This is particularly true for life insurance—premiums typically are fixed for the duration of the policy, and once a policy is in place, a customer might never again interact with the insurer,” he added.
In addition to Fornell’s reasoning, Life and Property insurers are reaping the benefits of the healthcare overhaul, which increased the cost of health insurance for everyone.
It is well documented that customer satisfaction directly correlates with the rising and lowering of costs for a particular good or service.
Read more: Insurance company ratings.