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

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

Length of Time Vehicles Are in a Repair Shop Increases, Extending the Claims
Process

PR Newswire

WESTLAKE VILLAGE, Calif., Jan. 24, 2013

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 Study^SM—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

Website: http://www.jdpower.com
Website: http://www.mcgraw-hill.com
 
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