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Subject: Economic News/Analysis

Usage-Based Auto Insurance Takes Center Stage as Satisfaction Flatlines, J.D. Power Finds


A record high number of serious collisions, skyrocketing used-vehicle prices and surging repair costs have created an unenviable scenario for auto insurers: raise rates or go out of business. It should come as little surprise that the J.D. Power 2022 U.S. Auto Insurance Study,SM released today, finds that customer satisfaction with the price of auto insurance has declined sharply, but notable industry efforts to improve customer engagement has kept overall customer satisfaction at a level similar to a year ago.

"The current situation is a tough one for auto insurers, but it is not impossible in the current inflationary environment to build customer satisfaction and retention," said Robert Lajdziak, director of insurance intelligence at J.D. Power. "J.D. Power finds two bright spots in the data for insurers. First, those insurers that are transparent and notify customers in advance of price increases can blunt the negative effects of a price increase. Second, usage-based insurance is growing quickly, with an all-time high number of customers adopting these programs and due to their experience using them, overall customer satisfaction levels have significantly risen."

Following are some of the key findings of the 2022 study:

The study measures customer satisfaction with auto insurance in 11 geographic regions. Highest-ranking auto insurers and scores, by region, are as follows:

California: Wawanesa (879) (for a third consecutive year)
Central: Shelter (866) (for a second consecutive year)
Florida: The Hartford (860)
Mid-Atlantic: Erie Insurance (867)
New England: Amica Mutual (862) (for a 10th consecutive year)
New York: New York Central Mutual (834)
North Central: Erie Insurance (876) (for a second consecutive year)
Northwest: The Hartford (842)
Southeast: Farm Bureau Insurance - Tennessee (876) (for an 11th consecutive year)
Southwest: State Farm (848)
Texas: Texas Farm Bureau (873) (for an 11th consecutive year)

See the rank charts for each region at http://www.jdpower.com/pr-id/2022065.

The 2022 U.S. Auto Insurance Study, now in its 23rd year, examines customer satisfaction in five factors (in alphabetical order): billing process and policy information; claims; interaction; policy offerings; and price. The study is based on responses from 36,935 auto insurance customers and was fielded from January through April 2022.

For more information about the U.S. Auto Insurance Study, visit https://www.jdpower.com/business/resource/jd-power-us-auto-insurance-satisfaction-study.

About J.D. Power

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, J.D. Power has been delivering incisive industry intelligence on customer interactions with brands and products for more than 50 years. The world's leading businesses across major industries rely on J.D. Power to guide their customer-facing strategies.

J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company's business offerings, visit JDPower.com/business. The J.D. Power auto shopping tool can be found at JDPower.com.

About J.D. Power and Advertising/Promotional Rules: www.jdpower.com/business/about-us/press-release-info



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