J.D. Power, a well-known consumer research company, plays a key role for insurance brokers in the US. Founded in 1968 and based in Troy, Michigan, the company is famous for its customer satisfaction surveys and rankings. Its work influences many industries, but its insurance ratings are especially important for brokers and consumers alike.
Each year, J.D. Power publishes rankings for home and auto insurance companies. These ratings are based on detailed surveys of thousands of policyholders from across the country. For example, the recent 2024 auto insurance study gathered feedback from over 41,000 customers. The surveys look at several factors including pricing, product options, customer service, claims handling, and ease of doing business.
What sets J.D. Power apart is the focus on what customers actually experience. Customers rate their insurers on aspects like trust, problem resolution, digital tools, and how quickly claims are handled. Based on this feedback, insurance companies receive scores on a 1,000-point scale, with higher scores showing better overall satisfaction. These results are published nationally and regionally, and top performers often earn awards that they use in marketing.
For insurance brokers, these rankings are invaluable. They provide an objective way to recommend insurance companies that offer strong customer service and fair claims processes. Brokers can use J.D. Power’s data to build trust with clients, tailor insurance options based on specific needs, and help clients understand how insurers perform in real life. This makes it easier for clients to feel confident in their choices.
While J.D. Power focuses on the customer experience, traditional insurance rating agencies like A.M. Best and Moody’s assess the financial strength of insurers. These agencies look at an insurer’s capital, liquidity, and ability to pay claims during tough times. Both types of ratings are important—J.D. Power shows service quality, while agencies show financial stability. Brokers and clients benefit most when they consider both.
Overall, J.D. Power ratings give insurance brokers a reliable tool to compare companies and guide their clients. The transparency and independence of the data help everyone make better decisions. As insurance products grow more varied and digital, these ratings become even more useful to find insurance providers that truly meet customers’ expectations.