J. D. Power & Associates

Trusted Customer Satisfaction Research and Ratings

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Does it really matter what other people think? About some things, perhaps not – but when it comes to insurance companies, knowing the opinions of other consumers can mean a lot. If you can find out how others feel about a company’s customer service, claims service and purchasing experience, you are armed with powerful information. Yes, financial strength ratings of an insurance company are important, and insurance rating organizations are good for supplying this type of information, but equally important is the company’s customer satisfaction ratings.

J. D. Power & Associates is a global market research firm that can supply you with this information.

Company Overview

J. D. Power & Associates conducts market research and customer satisfaction surveys for many different industries including financial services, insurance, cars, marketing and advertising firms. The customer satisfaction awards given to companies by J.D. Power & Associates have come to be considered a standard of excellence. Customer satisfaction awards are based on the results of customer surveys.

J. D. Power & Associates was founded in 1968 by J. D “Dave” Power III. The company was started in J. D. Power’s home with its initial focus on research in the automotive industry. From there, the company has grown to be a respected authority for many different industries in customer satisfaction worldwide. J. D. Power customer satisfaction ratings influence purchasing decisions for consumers in North America, Europe, and Asia Pacific.

In 1969, J. D. Power & Associates became incorporated and entered the auto market. Its first client was Toyota Motor Company. From there, the company went on to gain many well-respected clients and became “the voice of the consumer.” In 1999, the Power Circle Ratings were established and provided study highlights directly to consumers without charge.

The company headquarters is in Westlake Village, California but it has operations in seven U.S. locations as well as international offices serving Europe, South America, Asia Pacific and Canada. In 2012, J.D. Power & Associates was recognized as a Honomichl Global Top 25 market research firm. J.D. Power & Associates is a product of McGraw Hill Financial. McGraw Hill Financial operates in 27 countries with over 17,000 employees. J.D. Power & Associates employs more than 750 professional consultants including analysts, economists, statistician experts in consumer behavior and demographics as well as administrative support personnel.

Insurance Marketing Research

J. D. Power & Associates conducts market research for the insurance industry including vehicle, health and home insurance. The ratings are based on opinions from consumers of their buying experience, customer service experience, and claims satisfaction. Some of these studies include:

  • Auto Insurance Purchase Experience
  • Property Claims Satisfaction Ratings
  • U.S. Auto Claims Ratings
  • U.S. Auto Insurance Provider Ratings
  • Homeowners Insurance Provider Ratings
  • Insurance Website Evaluation Study
  • U.S. Insurance Shopping Study
  • Auto Claims Satisfaction Study

Power Circle Ratings

Power Circle Ratings are ratings derived from studies of consumer ratings. The consumers participating in these surveys are a representative sampling of customers who use the products or services. The ratings are based on a range of the highest and lowest scoring companies included in the survey. The Power Circle Ratings range from two to five, with five being the highest rating. Here is a further breakdown of Power Circle Ratings:

  • 5 – Among the Best A company which scores a 5 in the Power Circle Ratings is considered among the best of companies within its industry. These companies score in the top 10 percent according to customer satisfaction. The company within this category who scores the highest receives a J. D. Power & Associates award.
  • 4 – Better than Most This rating means that a company has scored 10 percent of the range above the industry average and are “better than most” other companies within the industry but below the scores required for the top rating.
  • 3 – About Average These companies receive an average score meaning that consumers consider their products and services “average” for the industry.
  • 2 – The Rest Companies rating a “2” have scored 20 percent below the industry range meaning that consumers consider their products or services below the industry average.

The Bottom Line

It takes much research to find the best insurance company for your insurance needs. You should start by checking out the company’s financial strength. Many insurance rating organizations offer this information such as A.M. Best, Standard & Poor’s and Fitch’s rating services.

Next, find out about the company’s customer satisfaction rating. J. D. Power & Associates is a respected name in customer satisfaction ratings and has become known as “the voice of the customer.” Using its ratings can tell you how your insurance company ranks in the opinion of its customers. Wouldn’t you like to know how other customers feel about an insurance company before you become its customer? To learn more about J.D. Powers & Associates customer satisfaction ratings, you can visit the J. D. Power & Associates website or call toll free 888.537.6937.