acsi american customer satisfaction index · acsi finance & insurance report 2017 acsi industry...

ACSI FINANCE & INSURANCE REPORT 2017

ACSI

INDUSTRY RESULTS FOR:Banks

Credit Unions

Health Insurance

Property & Casualty Insurance

Life Insurance

Internet Investment Services

November 14, 2017

ABOUT ACSIThe American Customer

Satisfaction Index (ACSI®) is a

national economic indicator of

customer evaluations of the quality

of products and services available

to household consumers in the

United States.

The ACSI uses data from

interviews with roughly 180,000

customers annually as inputs

to an econometric model for

analyzing customer satisfaction

with more than 300 companies

in 43 industries and 10 economic

sectors, including various services

of federal and local government

agencies.

ACSI results are released

throughout the year, with all

measures reported on a scale of

0 to 100. ACSI data have proven

to be strongly related to several

essential indicators of micro and

macroeconomic performance. For

example, firms with higher levels of

customer satisfaction tend to have

higher earnings and stock returns

relative to competitors. Stock

portfolios based on companies

that show strong performance in

ACSI deliver excess returns in up

markets as well as down markets.

At the macro level, customer

satisfaction has been shown to

be predictive of both consumer

spending and GDP growth.

American CustomerSatisfaction Index®

©2017 ACSI LLC. ALL RIGHTS RESERVED.

Life Insurance

78 -1.3%

Health Insurance73 +1.4%

Banks81 +1.3%

Credit Unions82 0.0%

Property & Casualty Insurance

80 +2.6%

Internet Investment Services

79 -1.3%

http://www.theacsi.org






Customer satisfaction with finance and insurance overall is up 0.9% to 77.2 (100-point scale), according to the American Customer Satisfaction Index (ACSI®). This is the second consecutive year of improvement for the sector, which includes banks, credit unions, health insurance, property and casualty insurance, life insurance, and internet investment services.

BANKSNobel Prize winner Herbert A. Simon estimated that it takes 10 years of experience to become an expert. Simon’s theory refers to the individual’s capacity to master a skill, but perhaps the concept applies to industries as well. Now 10 years after the introduction of mobile banking, users consider the industry’s digital platforms to be excellent. Customer satisfaction with retail banking (including checking, savings, and personal loans) is up 1.3% to an ACSI score of 81, an all-time high for the industry.

Regional and community banks improve the most, leading the category with a combined score of 85, up 2.4% from a year ago. Super regional banks are steady at 79. National banks rank lowest, but inch up 1.3% to 78.

Digital Banking Lifts Customer Satisfaction to Record High

ACSI Finance & Insurance Report 2017

ACSI

1 WWW.THEACSI.ORG | [email protected] ©2017 ACSI LLC. ALL RIGHTS RESERVED.

Last year, Citibank posted a record gain and it remains the highest-scoring national bank tracked by the ACSI despite a slip of 1% to 81. The consumer division of Citigroup struggled with low customer satisfaction during the financial crisis, and the subsequent bailout by the U.S. Treasury did not help foster goodwill. But by 2010, the bank had repaid the government and began to repair its frayed customer relationships. Customer satisfaction for Citibank is up 17% since 2008.

With an ACSI score of 79, its highest score ever, Chase takes second place among national banks. Chase also shows the most improvement of any individual bank, gaining 5% from a year ago. Investments





mailto:info%40theacsi.org?subject=


ACSI


Bank of America, which has rolled out contactless ATMs, peer-to-peer payment, and new budget planning tools, climbs 3% to 77. Its customers use digital banking more than any other channel. The bank continues to adopt emerging technology and has revealed plans to introduce a virtual banking assistant, which seems to fit with the desires of its customer base.

Meanwhile, Wells Fargo falls 3% to 74, last place among national banks. The bank continues to struggle with the fallout of the fake account scandal, which may be diverting resources away from customer-focused initiatives. Customers say rates aren’t competitive, problems with fees endure, and the bank isn’t keeping pace with the rest of the industry. Wells Fargo closed 84 branches in 2016—a process that is accelerating with 400 more closures planned through 2018.

in technology are paying off—the company’s mobile banking app, website, and improved ATMs have all contributed. With QuickPay, which will become even easier to use as more banks adopt the Zelle platform, Chase also is capitalizing on the popularity of peer-to-peer payment services. Chase customers are exceedingly digitally engaged, but the bank also is doing well at maintaining good customer service for those who prefer human interaction.






ACSI


Among super regional banks, a 4% gain boosts Regions Bank to first place at 81. The Birmingham-based bank has spent the past year customizing service, including a digital guide designed to match customers with the products best suited to their needs.

A 4% increase for U.S Bank lifts it from last place to 80, just above the industry average. Four other banks cluster here as well: Capital One, SunTrust Bank, TD Bank, and BB&T. Both Capital One and U.S. Bank are among the first five banks to plug into the Zelle network, which could be advantageous as more customers make use of peer-to-peer payments.

PNC Bank is unchanged at 78, but the remaining firms all show deteriorating customer satisfaction. Citizens Bank is down by 4% to 77, while Fifth Third Bank and KeyBank each fall 6% to 76 and 75, respectively.






ACSI







ACSI


According to customers, smaller banks offer a better customer experience in almost every way. ACSI data show that when banks are grouped by size, regional and community banks outperform national and super regional banks on almost all aspects of customer service. The only benefit larger banks have is the number and location of branches and ATMs (both 78).

Small banks excel in staff courtesy (90), transaction speed (87), and even website quality (87). Community banks also shine where customers appreciate a personal interaction such as adding or changing accounts, making it easy to understand information, and calling the bank for help (all 86).

CREDIT UNIONSCredit unions are stable at an ACSI score of 82. As membership grows, it is a continual challenge for credit unions to maintain the high levels of service that smaller organizations are able to provide.

Members appreciate that credit unions are opening more branches (+4%) and ATMs (+6%), but at 71 these remain the lowest-rated aspects of the credit union experience. The variety of financial services offered also has improved from last year (84).

Staff courtesy and helpfulness is still strong at 89, but down a point from a year ago and service is slightly slower as branches get busier (-2% to 87). Members also report that interest rates seem less competitive (79). On the other hand, credit unions have made it easier to add or change accounts (84), and are doing a better job of helping customers understand their accounts (83).






ACSI


HEALTH INSURANCECustomer satisfaction with health insurance has increased by 1.4% to an ACSI score of 73 for a second year of steady improvement. This month marks the fifth annual season for Americans to purchase health care insurance under the Affordable Care Act (ACA). According to ACSI data, policyholders with individual plans are more satisfied than those with group plans (ACSI score of 75 vs. 72).

Large gains for Humana (+10%) and Kaiser Permanente (+7%) propel both firms to the top of the category, tied for first place with matching ACSI scores of 79. This is the highest level of customer satisfaction ever






ACSI


achieved by any health insurer in the history of the ACSI. However, with respect to the ACA, the two companies have set divergent courses for the future. Humana is out, while Kaiser will stay.

Humana debuted in the ACSI 2015 with a score of 71. It has made strides to better integrate health benefits for customers by expanding its primary care and home care platforms. This year, Humana announced the termination of its planned merger agreement with Aetna, and the company has begun to shift away from the ACA exchanges.

The other ACSI leader, Kaiser Permanente, has confirmed its commitment to the ACA exchanges for 2018. It was an early adopter of digitalized medical records and continues to advance technology to the benefit of its members. Users are highly engaged with the website—patients can refill prescriptions, schedule appointments, and view lab results online. Kaiser also now offers video consultations to the advantage of patients, clinics, and the firm. Last year, more than half of its 110 million patient interactions happened online or over the phone.

Smaller insurers climb 3% to a combined score of 75. Meanwhile, Aetna slips 1% to 74. The largest health insurer, UnitedHealth, moves up 4% to match the industry average of 73. Blue Cross and Blue Shield, which includes Anthem, is stable at 71. Cigna, whose merger with Anthem stalled out, remains at the bottom of the category, slipping further to 66 (-1%).






ACSI


Health insurers have improved in many ways, but not with coverage of standard medical services (76), ease of submitting claims (77), or access to specialty care (78). According to patients, access to primary care doctors is slightly worse than it was a year ago (79).

Company websites, on the other hand, have gotten better (+3% to 78), as have call centers (+3% to 75). Prescription drug coverage improves as well (+3% to 76). Additionally, claims are being processed faster (75), and it’s easier to understand insurance statements (74). Policyholders still want to see a wider range of plans (73), but this has improved over a year ago.






ACSI


PROPERTY AND CASUALTY INSURANCEIn the midst of one of the worst hurricane seasons in U.S. history, customer satisfaction with property and casualty insurance rises 2.6% to 80. All but one of the largest insurers post gains.

AAA holds the lead, inching up 1% to 82. The rest of the industry is not far behind. Farm Bureau shows the most improvement with an 8% jump to 80. Also at 80 are GEICO (+3%), Liberty Mutual (+4%), Travelers (+4%), and the combined score of all other, smaller insurers (+1%).

Three insurers come in at 79 with 3% gains: American Family, Farmers, and State Farm. A notch below, Allstate and Progressive each move up 1% to tie at 78.

Nationwide is the only insurer to deteriorate, sliding 4% to the bottom of the category at 76. The insurer recently agreed to a $5.5 million settlement over its 2012 data breach that exposed personal information for an estimated 1.27 million consumers.

For the industry overall, policyholders say that bills are easier to understand (83) and the variety of coverage options has improved (83). The availability of discounts and rewards is slightly better (76), although this is the lowest-rated element of the policyholder experience.






ACSI


An influx of claims, however, appears to have placed staff levels under strain. Claims processing has slowed considerably compared to a year ago (-5% to 80). Courtesy and helpfulness is down for claims handling (-2% to 84) and for other queries including purchase and renewal (-1% to 83).






ACSI


LIFE INSURANCECustomer satisfaction with life insurance slips 1.3% to an ACSI score of 78. Northwestern Mutual and Thrivent Financial buck the trend, moving up to tie for first place at 83. Northwestern Mutual’s 5% gain makes it the industry’s most improved provider, and the company recently announced that its policy owners will receive an estimated $5.3 billion through its 2018 dividend payout. Thrivent’s 2% step-up places the insurer at its highest score since it entered the ACSI three years ago.

Almost all of the remaining large life insurers show stagnant or deteriorating customer satisfaction. Mutual of Omaha slips 1% to match New York Life, down 2% to 80. Allstate falls 4% to meet State Farm, unchanged at 79.

Prudential and MetLife are the only other insurers to improve, inching up 1% to 78 and 77, respectively. Farmers takes the biggest hit, sliding 4% to 77, alongside the combined score of all other, smaller insurers (-3%). Lincoln Financial is unchanged at 76, followed by Primerica (-1%) at 74.






ACSI


All customer experience benchmarks for life insurance have gotten worse, and this is the only category in the finance and insurance sector to see website satisfaction decline (83).

According to policyholders, agents are less helpful and policy approval is taking longer (both 82). Customers also want a wider variety of policy options (-2% to 79), more discounts (-3% to 75), and a better understanding of premium calculations (-3% to 75).

INTERNET INVESTMENT SERVICESCustomer satisfaction with internet investment services recedes 1.3% to an ACSI score of 79. Only two of the large online brokerages post gains in customer satisfaction.

The biggest winner is Vanguard, which is up 1% to 82. The online brokerage firm won nearly $30 billion of investor money last month, boosting its year-to-date inflows to over $300 billion and setting the firm up to surpass last year’s record-breaking annual results. Vanguard’s improvement solidifies its lead over the next three firms, which all shared second place with Vanguard a year ago. Remaining in second place






ACSI


All other, smaller online brokers dip 1% to 78, just below the industry average. Scottrade, which has been acquired by TD Ameritrade, takes the biggest hit—dropping 7% from first to last place at 77. It’s been a difficult year for Scottrade, with 11 months between the purchase announcement and completion of the sale. But Scottrade is not alone at the bottom; Merrill Edge sinks 3%, joining the past leader at the low end of the category.

According to the users of internet brokerage websites, it isn’t as easy to make an investment transaction (82) as it was a year ago. Site performance and ease of navigation are both down 2% to 81 and 80, respectively.

Customer support is better (80), but users want investment research information to be more helpful (77). The usefulness of investment planning tools continues to rate low at 77.

this year, Charles Schwab, Edward Jones, and Fidelity each slip 1% to 80. TD Ameritrade is the only other company to register improvement, edging up 1% to tie E*Trade (-1%) for third place at 79.






ACSI


No advertising or other promotional use can be made of the data and information in this report without the express prior written consent of ACSI LLC.






ACSI


ABOUT THIS REPORTThe ACSI Finance and Insurance Report 2017 on banks, credit unions, health insurance, property/casualty insurance, life insurance, and internet investment services is based on interviews with 17,861 customers, chosen at random and contacted via email between October 1, 2016, and September 16, 2017. Customers are asked to evaluate their recent experiences with financial services provided by the largest firms in terms of market share, plus an aggregate category consisting of “all other”—and thus smaller—companies in these industries.

The survey data are used as inputs to ACSI’s cause-and-effect econometric model, which estimates customer satisfaction as the result of the survey-measured inputs of customer expectations, perceptions of quality, and perceptions of value. The ACSI model, in turn, links customer satisfaction with the survey-measured outcomes of customer complaints and customer loyalty. ACSI clients receive confidential industry-competitive and best-in-class data on all modeled variables and customer experience benchmarks.

ACSI and its logo are Registered Marks of the University of Michigan, licensed worldwide exclusively to American Customer Satisfaction Index LLC with the right to sublicense.





https://www.facebook.com/theACSI

https://twitter.com/theACSI

http://www.acsimatters.com

https://www.linkedin.com/company/american-customer-satisfaction-index-acsi-?trk=vsrp_companies_res_name&trkInfo=VSRPsearchId%3A60811181380135309026%2CVSRPtargetId%3A758098%2CVSRPcmpt%3Aprimary


ACSI






acsi american customer satisfaction index · acsi finance & insurance report 2017 acsi industry...

Documents