Auto-Owners Insurance and State Farm Each Rank Highest in Two of 11 Regions

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1 w Reports: Improved Interactions Drive Gen Y Increase in Auto Insurance Satisfaction Auto-Owners Insurance and Each Rank Highest in Two of 11 Regions WESTLAKE VILLAGE, Calif.: 19 June 2015 Gen Y 1 customers are the driving force behind an increase in overall auto insurance satisfaction due to improvement across all customer service interaction channels, the largest contributor to the customer experience, according to the released today. The study examines customer satisfaction in five factors: interaction; price; policy offerings; billing and payment; and claims. Satisfaction is measured on a 1,000-point scale. Overall customer satisfaction with their auto insurer has reached an all-time high of 818, an improvement of 8 index points from Satisfaction among Gen Y customers has increased the most, compared with the other generations Gen Y: +21 points; Gen X: +6; Boomers +4; and Pre- Boomers: -3. The interaction factor has the greatest impact on overall customer satisfaction and is also the largest contributor to the year-over-year improvement. Overall interaction satisfaction among Gen Y customers (827) is up by a significant 20 points from Customer interaction preferences are changing. Gen Y s preference to interact exclusively through digital self-service (Web or mobile) has increased to 27 percent in 2015 from 21 percent in A similar pattern of preference is found in other generational groups (Gen X: 23% vs. 19% in 2011; Boomers: 12% vs. 10%; and Pre-Boomers: 6% vs. 4%). Among the interaction channels, satisfaction with the website experience receives the lowest average score, most notably among Gen Y customers (816, compared with 826 for Gen X, 841 for Boomers and 861 for Pre-Boomers). While customers across all generations are able to use online self-service for basic tasks such as making a payment and gathering information about their account, they should also be able to resolve more complex issues online, said Valerie Monet, director of the insurance practice at. It is critical for insurers to resolve customers service needs entirely on the website. This can drive increased use of the website and can minimize servicing costs, as unresolved issues frequently require a contact to call centers or agents, freeing their time to cultivate new business. According to Monet, some activities are better performed through personal interactions. One-fourth (25%) of Gen Y customers indicate they would rather talk to someone in person or over the phone to discuss price changes, and 23 percent indicate they prefer in person or over the phone rather than the website channel when they have questions about their policy coverage. Insurers should 1 defines generational groups as Pre-Boomers (born before 1946); Boomers ( ); Gen X ( ); Gen Y ( ); and Gen Z ( ). (Page 1 of 3)

2 focus their in-person resources on high-touch customer calls in which the agent s expertise is highly valued. KEY FINDINGS The incidence of resolving issues entirely via the website has increased for Gen Y to 81 percent (up by 2 percentage points from 2014), with similar rates across generational groups Gen X 82%; Boomers 81%; and Pre-Boomers 80%. Website satisfaction is 123 points lower among customers who do not resolve their issue completely via the website than among those who do (736 vs. 859, respectively). Nearly three-fourths (73%) of Gen Y customers indicate having online access to policy information (+2 percentage points from 2014), compared with 62 percent across the other three generations. The level of awareness of online access to policy information among Gen Y customers (73%) is greater than among customers in the other generational groups (Gen X 68%; Boomers 62%; and Pre-Boomers 54%). Nearly nine in 10 (87%) customers overall indicate receiving communications from their insurer via their preferred method up 2 percentage points from 2014 compared with 81 percent among Gen Y customers, which is an increase of 5 percentage points. Across all generational groups, 49 percent of customers say they definitely will recommend their current insurer (the same as in 2014) and 50 percent say they definitely will renew their policy (down 1 percentage point from 51% in 2014). Regional Overview Satisfaction varies regionally from a high of 832 in the Texas region to a low of 801 in the New England region. Eight of the 11 study regions post significant increases in overall customer satisfaction year over year, with the greatest improvements in the Florida (+24 points) and Mid- Atlantic (+16) regions. California: Wawanesa (844) ranks highest in the California region. ranks second at 840 and Auto Club of Southern California Insurance Group ranks third at 839. Central: Auto-Owners Insurance (850) ranks highest in the Central region, followed by Shelter Insurance (846) and (830). Florida: (836) ranks highest in the Florida region. (835) and (832) follow in the rankings. Mid-Atlantic: Erie Insurance (850) ranks highest in the Mid-Atlantic region. (835) ranks second and ranks third (826). New England: Amica Mutual (866) ranks highest in the New England region. (815) ranks second and (808) third. New York: ranks highest in the New York region (831). (828) ranks second and Travelers (818) ranks third. North Central: Auto-Owners Insurance (834) ranks highest in the North Central region. (828) ranks second and COUNTRY Financial and Indiana Farm Bureau (822 each) tie for third.

3 Northwest: PEMCO Insurance (837) ranks highest in the Northwest region, followed by (830) and Farmers (828). Southeast: Tennessee Farm Bureau (859) ranks highest in the Southeast region. Alfa Insurance (831) ranks second and (830) third. Southwest: and rank highest in the Southwest region in a tie (830 each). (826) ranks third. Texas: Texas Farm Bureau Insurance (859) ranks highest in the Texas region. No other insurance company performs above the Texas region average (832). New Jersey Manufacturers Insurance Company (NJM) and USAA also achieve high levels of customer satisfaction in the study, although they are not included in the rankings due to the closed nature of their respective memberships. The 2015 U.S. Auto Insurance Study is based on responses from 46,256 auto insurance customers. The survey data was collected in March and April Media Relations Contacts Jeff Perlman; Brandware Public Relations; Woodland Hills, Calif.; ; jperlman@brandwarepr.com John Tews; ; Troy, Mich.; ; media.relations@jdpa.com About and Advertising/Promotional Rules About McGraw Hill Financial # # # (Page 3 of 3) Note: Eleven charts follow. (Page 2 of 3)

4 California Region Wawanesa Auto Club of Southern California Insurance Group Ameriprise Esurance California Regional Average CSAA Insurance Group Farmers 21st Century Mercury Travelers Infinity P&C not included in the rankings. Included in the study but not ranked due to sample size are Kemper, MAPFRE- Commerce Insurance, and National General. as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, release or survey results without the express prior written consent of.

5 Central Region Auto-Owners Insurance Shelter Insurance American Family Central Regional Average Farmers Auto Club of Southern California Insurance Group Farm Bureau Mutual Travelers not included in the rankings. Included in the study but not ranked due to sample size is Automobile Club Group. as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, release or survey results without the express prior written consent of. (Page 2 of 3)

6 Florida Region MetLife Florida Regional Average 21st Century Auto-Owners Insurance Travelers Esurance not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Direct General, Farmers, Infinity P&C, and Mercury. as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, release or survey results without the express prior written consent of.

7 Mid-Atlantic Region Erie Insurance Mid-Atlantic Regional Average Travelers Plymouth Rock Assurance 21st Century **NJM Insurance Co not included in the rankings. **NJM Insurance Co. is an insurance provider open only to New Jersey Business & Industry Association members, State of New Jersey employees, NJM's previously insured drivers, and/or previous/current auto/homeowner policyholders, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Esurance, and MetLife. as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, release or survey results without the express prior written consent of. (Page 2 of 3)

8 New England Region Amica Mutual New England Regional Average MetLife Safety Insurance Travelers Plymouth Rock Assurance Arbella MAPFRE-Commerce Insurance not included in the rankings. Included in the study but not ranked due to sample size is The Hanover. as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, release or survey results without the express prior written consent of.

9 New York Region Travelers New York Regional Average New York Central Mutual MetLife not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Erie Insurance, and Kemper. as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, release or survey results without the express prior written consent of. (Page 2 of 3)

10 North Central Region Auto-Owners Insurance COUNTRY Financial Indiana Farm Bureau American Family Erie Insurance Farmers North Central Regional Average Grange Insurance MetLife Michigan Farm Bureau Automobile Club Group The Hanover not included in the rankings. Included in the study but not ranked due to sample size is Esurance. as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, release or survey results without the express prior written consent of.

11 Northwest Region PEMCO Insurance Farmers Northwest Regional Average American Family not included in the rankings. Included in the study but not ranked due to sample size are COUNTRY Financial, Kemper, and Mutual of Enumclaw. as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, release or survey results without the express prior written consent of. (Page 2 of 3)

12 Southeast Region Tennesssee Farm Bureau Alfa Insurance North Carolina Farm Bureau Kentucky Farm Bureau Southeast Regional Average Auto-Owners Insurance Travelers not included in the rankings. Included in the study but not ranked due to sample size are COUNTRY Financial, Erie Insurance, Esurance, Farmers, Grange Insurance,, Kemper, MetLife, National General, and Shelter. as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, release or survey results without the express prior written consent of.

13 Southwest Region American Family Southwest Regional Average CSAA Insurance Group Farmers not included in the rankings. Included in the study but not ranked due to sample size are Auto-Owners Insurance, Farm Bureau Mutual, and. as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, release or survey results without the express prior written consent of. (Page 2 of 3)

14 Texas Region Texas Farm Bureau Insurance Texas Regional Average Farmers not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Auto Club of Southern California Insurance Group, Kemper, and. as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, release or survey results without the express prior written consent of.