Decline in satisfaction is mainly in the area of interaction with customers at branch offices as well as independent agents

Moneylife Digital Team

New India Assurance ranks the highest in customer satisfaction with auto insurance providers in India, according to a survey by a global marketing information services company. Overall, however, the survey found that customer satisfaction with auto insurance providers has declined in the past one year.

In the survey conducted by JD Power Asia Pacific, New India Assurance topped the list with a score of 804, performing particularly well on the renewal/purchase process factor. Following New India Assurance closely in the rankings was Oriental Insurance, which notched a score of 802, doing well in the billing and payment process as well as renewal/ purchase process factors. New India Assurance and Oriental Insurance are both public insurers. ICICI Lombard, a private insurer, was number three with a score of 801.

Overall, there is a decline in customer satisfaction with auto insurance providers, with the greatest decline observed in the area of interaction with customers. More customers are dissatisfied now with branch office interactions, as also interactions with independent agents and brokers.

Customer satisfaction with auto insurance providers has an impact on customer intent to renew their current policies, and to purchase policies from the same provider for their next vehicle.

"The service channels of insurers are adapting to the growth in the India auto insurance market," said Mohit Arora, executive director, JD Power Asia Pacific, Singapore. "One of the changes observed during the past few years is an increase in the number of branch offices, as well as their visibility. Therefore, it becomes particularly important for insurers to ensure better customer management at branch offices, especially in terms of understanding needs and requirements, providing clear explanations of policy coverage, and courtesy and friendliness."

The 2011 India Auto Insurance Customer Satisfaction Index Study is based on responses from 5,284 auto insurance customers who renewed or purchased an auto insurance policy between January 2010 and April 2011 and had between 2.5 and 3.5 years of vehicle ownership experience. The study includes 15 auto insurance companies (11 private and four public providers) and was undertaken between January and April 2011in 20 cities across India.

The study examined auto insurance policyholder experiences with their primary insurer. Customer satisfaction is measured across six factors: interaction; claims; product/policy offerings; renewal/purchase process; billing and payment process; and premium/price for coverage offered.

The study also found a wide variation between regions in the proportion of customers who file claims. Approximately one-fourth of customers in the southern and eastern regions filed a claim with their auto insurer in 2011, compared with less than 15% of customers in the northern and western regions.

The claims satisfaction is highest among customers in the northern region, with the satisfaction averaging 781, compared with approximately 750 in the remaining regions. Some factors contributing to higher claims satisfaction in the north region include relatively better implementation of key communication-related practices, such as providing explanations of the claims settlement process and giving information on claim settlement timelines.

"Auto insurance satisfaction has a profound impact on repurchase intent," explained Mr Arora. "The auto insurance market presents a huge potential in terms of customer base and revenues. Therefore, it is imperative that providers focus on elevating their quality of service and enhancing the customer experience."