Auto Insurance Customer Satisfaction Reaches Record High, J.D. Power Finds Improvements in Digital Interactions, Billings/Payment, Policy Offerings Drive Increase COSTA MESA, Calif.: 14 June 2018 — Despite steadily increasing premiums, auto insurance customers are more satisfied with their carriers than ever. The reason? According to the J.D. Power 2018 U.S. Auto Insurance Study,SM released today, insurers are beginning to get the customer interaction formula right, offering a mix of digital and live interactions that keep customers engaged with their brands across all channels. “Cost is not the sole indicator of customer satisfaction in the auto insurance industry,” said Robert Lajdziak, Insurance Practice Business Consultant at J.D. Power. “Low prices may attract new customers, but it’s service that keeps them. The auto insurers that increase customer satisfaction across all facets of the customer experience make price just one part of the overall relationship.” More frequent use of digital interaction channels—particularly for monthly billing—also has played a major role in driving higher levels of satisfaction. “Customer satisfaction is at its highest when customers take care of transactions themselves and save the high-value interactions for live channels,” Lajdziak said. “However, the increasing demand and use of digital self-service options is putting pressure on agents to evolve their value proposition to offer more products and services to help customers with complex needs and risks.” Following are some of the key findings of the 2018 study:

• Record-high customer satisfaction breeds loyalty: Overall customer satisfaction with U.S. auto insurers improves in 2018 and is now at a record-high level of 826 (on a 1,000-point scale). This increase in customer satisfaction is inversely correlated with a decline in auto insurance shopping rates, which have reached a record low.1

• Insurers delivering strong omnichannel experience: Customer satisfaction improves across all factors measured in the study, with the biggest gains in billing process and policy information (+11 points); policy offerings (+10); price (+6); and interaction (+3). The gain in the billing process and policy information factor is partly driven by increased satisfaction with electronic statements and monthly billing.

• Preference for digital interaction channels grows: Overall satisfaction tends to be highest when

customers interact via a mix of online and offline methods of communication. The preference for digital forms of communication is greatest for low touch-point interactions, such as verifying payment receipt (73% digital preference); making payment (70% digital preference); and ordering proof of insurance cards (66% digital preference).

1 J.D. Power 2018 U.S. Insurance Shopping StudySM

• Transparency is key when premium increases are introduced: When there is an insurer-initiated premium increase, it is important to communicate that an increase is coming. When customers are pre-notified of a premium increase, overall satisfaction is 797. When they are not notified—which happens 49% of the time—overall satisfaction drops 49 points to 748.

• Usage-based insurance programs grow significantly: Usage-based insurance programs, which

leverage telematics technology to set insurance premiums based on how far and how safely a customer drives, are gaining converts. This year, 10% of insurance customers indicate participating in usage-based insurance programs, up from 8% in 2016 and 2017. While the most common reason for participating in a usage-based program is to obtain a discount, speeding alerts, vehicle tracking and driver coaching are gaining importance among customers currently using such programs.

Study Rankings Following are the highest-ranked auto insurance brands by region: California: Ameriprise Central: Shelter Florida: MetLife Mid-Atlantic: Erie Insurance New England: Amica Mutual New York: New York Central Mutual North Central: Auto-Owners Insurance Northwest: PEMCO Insurance Southeast: Farm Bureau Insurance—Tennessee Southwest: CSAA Insurance Group Texas: Texas Farm Bureau The 2018 U.S. Auto Insurance Study examines customer satisfaction in five factors (in order of importance): interaction; policy offerings; price; billing process and policy information; and claims. The study is based on responses from 44,622 auto insurance customers and was fielded from February-April 2018. For more information about the U.S. Auto Insurance Study, visit http://www.jdpower.com/resource/jd-power-us-auto-insurance-satisfaction-study. See the online press release at http://www.jdpower.com/pr-id/2018084. J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer. Media Relations Contacts Geno Effler; Costa Mesa, Calif.; 714-621-6224; media.relations@jdpa.com John Roderick; St. James, N.Y.; 631-584-2200; john@jroderick.com About J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-info

# # # NOTE: 11 charts follow.

Year / Project / Study Name

862

844

840

835

822

820

818

816

814

813

813

811

807

800

796

795

795

774

894

600 1,000

Ameriprise

Wawanesa

Auto Club of Southern California Insurance Group

The Hartford

21st Century

Allstate

Esurance

Liberty Mutual

CSAA Insurance Group

State Farm

California Region

Safeco

GEICO

Progressive

Nationwide

Farmers

Mercury

Kemper

*USAA

J.D. Power2018 U.S. Auto Insurance StudySM

Overall Customer Satisfaction Index RankingCalifornia Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

Source: J.D. Power 2018 U.S. Auto Insurance StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Amica Mutual, Fred Loya Insurance, Infinity P&C, MAPFRE Insurance, MetLife, and National General. State included in region is California.

Year / Project / Study Name

855

847

838

833

826

824

823

822

821

815

814

806

806

803

803

906

600 1,000

Shelter

Auto-Owners Insurance

GEICO

Auto Club of Southern California Insurance Group

Central Region

State Farm

American Family

Allstate

Farmers

Progressive

Travelers

Farm Bureau Mutual

Liberty Mutual

Nationwide

Safeco

*USAA

J.D. Power2018 U.S. Auto Insurance StudySM

Overall Customer Satisfaction Index RankingCentral Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

Source: J.D. Power 2018 U.S. Auto Insurance StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are 21st Century, Alfa Insurance, Cincinnati Insurance, COUNTRY Financial, CSAA Insurance Group, Esurance, and The Hartford. States included in region are Arkansas, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, South Dakota.

Year / Project / Study Name

849

837

832

826

825

823

820

812

812

810

808

806

805

798

793

888

600 1,000

MetLife

Allstate

GEICO

Esurance

Safeco

Florida Region

Farmers

Auto-Owners Insurance

Progressive

Travelers

Mercury

The Hartford

Liberty Mutual

State Farm

Nationwide

*USAA

J.D. Power2018 U.S. Auto Insurance StudySM

Overall Customer Satisfaction Index RankingFlorida Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

Source: J.D. Power 2018 U.S. Auto Insurance StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are 21st Century, Amica Mutual, Direct General, Infinity P&C, and National General. State included in region is Florida.

Year / Project / Study Name

854

848

839

838

837

835

835

826

823

820

816

814

801

896

864

600 1,000

Erie Insurance

GEICO

The Hartford

Mid-Atlantic Region

Allstate

Plymouth Rock Assurance

Progressive

State Farm

Nationwide

Travelers

CSAA Insurance Group

Farmers

Liberty Mutual

*USAA

**NJM Insurance Co.

J.D. Power2018 U.S. Auto Insurance StudySM

Overall Customer Satisfaction Index RankingMid-Atlantic Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

Source: J.D. Power 2018 U.S. Auto Insurance StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. **NJM Insurance Co. is an insurance provider open only to New Jersey Business & Industry Association Members; employees of the state of New Jersey; employees of a New Jersey county, municipality or township; employees of a New Jersey public school; 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 21st Century, Alfa Insurance, Ameriprise, AmicaMutual, Cincinnati Insurance, Esurance, MetLife, and National General. States included in region are Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia.

Year / Project / Study Name

879

838

834

827

826

821

817

813

811

809

804

804

803

800

796

795

893

600 1,000

Amica Mutual

State Farm

Allstate

GEICO

Progressive

New England Region

Nationwide

Safety Insurance

MAPFRE Insurance

Liberty Mutual

Plymouth Rock Assurance

Travelers

MetLife

Arbella

Safeco

The Hanover

*USAA

J.D. Power2018 U.S. Auto Insurance StudySM

Overall Customer Satisfaction Index RankingNew England Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

Source: J.D. Power 2018 U.S. Auto Insurance StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Note: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size is Esurance. States included in region are Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont.

Year / Project / Study Name

852

834

824

821

821

820

818

816

813

806

900

600 1,000

New York Central Mutual

MetLife

Allstate

Travelers

New York Region

State Farm

Liberty Mutual

Progressive

GEICO

Nationwide

*USAA

J.D. Power2018 U.S. Auto Insurance StudySM

Overall Customer Satisfaction Index RankingNew York Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

Source: J.D. Power 2018 U.S. Auto Insurance StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are 21st Century, Ameriprise, Amica Mutual, The Hanover, The Hartford, Kemper, and National General. State included in region is New York.

Year / Project / Study Name

850

849

847

845

840

838

835

830

829

823

820

818

816

816

815

812

811

808

808

805

803

799

905

600 1,000

Auto-Owners Insurance

COUNTRY Financial

Cincinnati Insurance

Erie Insurance

State Farm

The Hartford

MI Farm Bureau

GEICO

North Central Region

Allstate

American Family

Progressive

Grange Insurance

The Hanover

Nationwide

Liberty Mutual

MetLife

Automobile Club Group

Farmers

Travelers

Safeco

Esurance

*USAA

J.D. Power2018 U.S. Auto Insurance StudySM

Overall Customer Satisfaction Index RankingNorth Central Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

Source: J.D. Power 2018 U.S. Auto Insurance StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are 21st Century, Ameriprise, Amica Mutual, and National General. States included in region are Illinois, Indiana, Michigan, Ohio, Wisconsin.

Year / Project / Study Name

842

832

826

817

813

808

807

805

798

798

785

782

896

600 1,000

PEMCO Insurance

The Hartford

American Family

State Farm

Northwest Region

Progressive

Liberty Mutual

GEICO

Allstate

Safeco

Farmers

Nationwide

*USAA

J.D. Power2018 U.S. Auto Insurance StudySM

Overall Customer Satisfaction Index RankingNorthwest Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

Source: J.D. Power 2018 U.S. Auto Insurance StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are Ameriprise, COUNTRY Financial, Kemper, MAPFRE Insurance, and National General. States included in region are Idaho, Montana, Oregon, Washington, Wyoming.

Year / Project / Study Name

884

842

839

839

832

830

830

829

824

823

822

821

820

814

810

796

894

600 1,000

Farm Bureau Insurance - Tennessee

Auto-Owners Insurance

GEICO

NC Farm Bureau

Southeast Region

Allstate

Progressive

Alfa Insurance

KY Farm Bureau

Nationwide

Travelers

State Farm

Safeco

Liberty Mutual

National General

MetLife

*USAA

J.D. Power2018 U.S. Auto Insurance StudySM

Overall Customer Satisfaction Index RankingSoutheast Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

Source: J.D. Power 2018 U.S. Auto Insurance StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are 21st Century, Ameriprise, Amica Mutual, Cincinnati Insurance, COUNTRY Financial, Direct General, Erie Insurance, Esurance, Grange Insurance, The Hanover, The Hartford, Kemper, and Shelter. States included in region are Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee.

Year / Project / Study Name

839

838

829

819

819

815

812

811

809

805

798

797

792

887

600 1,000

CSAA Insurance Group

The Hartford

State Farm

American Family

Southwest Region

Allstate

Progressive

Liberty Mutual

Travelers

Nationwide

GEICO

Farmers

Safeco

*USAA

J.D. Power2018 U.S. Auto Insurance StudySM

Overall Customer Satisfaction Index RankingSouthwest Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

Source: J.D. Power 2018 U.S. Auto Insurance StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are 21st Century, Ameriprise, Esurance, Farm Bureau Mutual, Fred Loya Insurance, Kemper, and MetLife. States included in region are Arizona, Colorado, Nevada, New Mexico, Utah.

Year / Project / Study Name

861

835

827

823

822

821

816

816

815

813

807

899

600 1,000

TX Farm Bureau

Allstate

Texas Region

MetLife

Farmers

Auto Club of Southern California Insurance Group

GEICO

State Farm

Progressive

Nationwide

Liberty Mutual

*USAA

J.D. Power2018 U.S. Auto Insurance StudySM

Overall Customer Satisfaction Index RankingTexas Region

(Based on a 1,000-point scale)

JDPower.comPower Circle RatingsTM

for consumers:

Among the bestBetter than mostAbout averageThe rest

Power Circle Ratings Legend

Source: J.D. Power 2018 U.S. Auto Insurance StudySM

Charts and graphs extracted from this press release for use by the media must be accompanied by a statement identifying J.D. Power as the publisher and the study from which it originated as the source. Rankings are based on numerical scores, and not necessarily on statistical significance. No advertising or other promotional use can be made of the information in th is release or J.D. Power survey results without the express prior written consent of J.D. Power.

Notes: *USAA is an insurance provider open only to U.S. military personnel and their families, and therefore is not included in the rankings. Included in the study but not ranked due to sample size are 21st Century, Ameriprise, Amica Mutual, Direct General, Esurance, Fred Loya Insurance, Infinity P&C, and Kemper. State included in region is Texas.