• by Tanya Gazdik , September 1, 2011

Amica Mutual ranks highest for a 10th consecutive year among homeowners insurance companies, according to the J.D. Power and Associates 2011 U.S. National Homeowners Insurance Study.

Now in its 11th year, the study measures customer satisfaction with homeowners insurance companies by examining five key factors: policy offerings; price; billing and payment; interaction; and claims.

The company performs particularly well in all five factors that contribute to overall customer satisfaction. Following Amica Mutual in the rankings are Auto-Owners Insurance and Erie Insurance (in a tie), Cincinnati Insurance, State Farm, and American Family, respectively. USAA, an insurance provider open only to U.S. military personnel and their families and therefore not included in the rankings, also achieves a high level of customer satisfaction.

Amica Mutual has consistently received high customer satisfaction ratings from its customers in both J.D. Power's National Auto Insurance study as well as the Homeowners Insurance study, says Jeremy Bowler, senior director, insurance practice, J.D. Power and Associates.

"It's not that they do one or two things well that causes them to stand apart, but rather they do a great job at each and every touch point with the customer," Bowler tells Marketing Daily. "Their approach to customer service is to take a consultative approach to service -- and they work hard to fully explain the policies and coverage whether selling or subsequently renewing the business rather than simply rushing to present a price."

For example, their front-line personnel do a great job of "owning" a customer problem or need and seeing it through to resolution, he adds.

Marketing can encourage consumer trial of a brand, especially in the consumer packaged goods industry, Bowler says. "So, among insurers brand such as Esurance or 21st Century certainly increase awareness and consideration among insurance shoppers through advertising," he says.

Amica, however, does not invest in marketing to the extent that the largest brands may. GEICO alone spent approximately $600 million last year in advertising and direct mail, he says.

"So I don't believe it plays as significant a role in shaping expectations among Amica customers as it might for customers of GEICO, Progressive, State Farm or Allstate," Bowler says. "That being said, there is a risk in advertising high customer service. If the customer experience does not live up to the hype, you run the risk of significantly failing to meet expectation -- which our study reveals leads to significantly higher rates of customer attrition or negative testimonials."

Among homeowners insurance policyholders, those with flood insurance tend to be significantly less satisfied with their policy coverage compared with policyholders who opt not to carry it.

Fewer than one in 10 homeowners insurance customers in New England and the Mid-Atlantic states report carrying flood insurance prior to Hurricane Irene. While a higher proportion of policyholders in the Gulf states (more than 25%) carry flood coverage either through their homeowners insurance company, state flood plans or another provider, this is still a relatively low proportion, considering the frequency of hurricanes and other severe weather events in the region, according to Westlake Village, Calif.-based J.D. Power & Associates.

Among homeowners who carry flood insurance, overall satisfaction averages 735 on a 1,000-point scale in 2011. In comparison, satisfaction among homeowners with earthquake insurance coverage averages 766.

The 2011 U.S. National Homeowners Insurance Study is based on responses from more than 9,100 homeowners insurance customers. The study was fielded between April and July 2011.