August 18, 2022 – Servicevalue and Focus-Money magazine wanted to know from customers of legal protection insurance companies how fairly they felt they were treated by the companies. ADAC, Advocard, Allianz, Arag, Concordia, DEVK, Ergo, Huk-Coburg as well as LVM and recently also Auxilia performed best again.
This year, Servicevalue GmbH, in cooperation with Focus-Money, investigated which legal protection insurance companies treat customers the most fairly. The study is based on an online consumer survey conducted in July.
They could rate up to two providers that they had been a customer of within the past twelve months. A total of 2,542 customer ratings for 26 companies were collected as part of the survey.
Assessment: This is how justice was determined
To make the virtual construct “fairness” measurable and thus controllable, the fairness perceived by customers as a meta-concept was parameterized in the study using the following five sub-dimensions with a total of 29 performance characteristics:
- Fair customer advice (responding to customers’ needs, ability and willingness to provide information, professional competence, binding declarations, proactively better offers);
- Fair customer service (employee availability, response to inquiries (time and quality), unbureaucratic customer service, response to problems (time and quality), legal advice over the phone, choice of lawyer);
- fair customer communication (comprehensibility of communication, comprehensibility of offers and contract documents, appropriate scope of information, orientation on the website);
- fair rate performance (transparency of products and services, product selection, quality of products and services, reliability of products and services, flexibility of products, security, foreign protection, smooth coverage of legal fees, mediation procedures);
- fair price-performance ratio (price-performance ratio, contribution stability, rewarding customer loyalty, case limitation for legal advice over the phone, assumption of all costs and fees).
Four-point rating scale
Consumers were given a four-point scale for their assessment. This ranged from “strongly agree” (1), “somewhat agree” (2), “somewhat disagree” (3) to “not agree at all” (4). Regarding the methodology, Servicevalue also stated: “The sub-dimensions result as an unweighted average from the respective evaluation criteria […].
All companies that are above average are rated ‘good’. Companies that are again above the average of companies rated as ‘good’ are given a ‘very good’.”
The most fair legal protection insurance companies from the customer’s point of view
The five dimensions were included equally in the overall assessment. The following ten insurers performed best with a “very good” rating (in alphabetical order):
Compared to the previous year (VersicherungsJournal August 18, 2021), Auxilia entered the top group.
Seven players in all segments “very good”
ADAC, Advocard, Allianz, Concordia, DEVK, Huk-Coburg and LVM scored “very well” in all five segments. Arag (except price-performance ratio) and Ergo (except advice) and three times for Auxilia (except advice and communication) managed to do this four times.
In all the last six editions of the survey (13.8.2020, 2.9.2019, 4.9.2018, 4.10.2017) ADAC, Advocard, Allianz spoke. Arag and Huk-Coburg to the “very good” leading group. LVM managed it five times (not in 2018), VGH Versicherungen (until 2020) and Concordia (since 2019) four times each.
The most important drivers of customer loyalty
The main customer loyalty drivers were also determined as part of a relevance analysis (variance explanation of the correlation according to Pearson). The areas of “product selection” and “transparency of products and services” were found to be the least important.
Of particular importance are the features “subject to all costs and charges”, “reasonable extent of information” and “reward for customer loyalty”. In the latter aspect, industry did the worst (average: 2.08). Here, Huk-Coburg and LVM (each 1.93) won over Ergo (1.94) and ADAC and DEVK (each 1.95).
Further information on the content, purchase options and price of the 286-page survey report “Customer Rating: Fairness of Legal Protection Insurers 2022” can be found in this survey brochure (PDF, 451 KB).