When deciding on consumer products like insurance, having reliable guidance can help you choose the best option for your needs. Companies like J.D. Power and Associates are dedicated to assisting you in these decisions. They rank insurance carriers, car manufacturers, and other businesses based on various criteria. Understanding how J.D. Power operates can provide valuable insights to help you make informed choices, whether you’re shopping for a new car, purchasing homeowners insurance, or planning your next vacation.

What does J.D. Power do?

According to its website, J.D. Power is a global leader in consumer insights, advisory services, and data analytics. This means you can leverage the company’s extensive experience and resources in data collection and analysis to help you evaluate products, from cars to Medicare plans. J.D. Power gathers information from thousands of individuals annually to provide highly-regarded rankings and industry insights.

J.D. Power conducts thorough studies. For instance, in the annual U.S. Auto Claims Satisfaction Study, policyholders are surveyed about their car insurance claim experience from start to finish, including the initial loss report, vehicle repair process, and settlement for total loss claims. These studies aim to gauge overall customer satisfaction and offer insurance companies insights for improvement.

Most of J.D. Power’s reports are subscriber-based, catering to some of the world’s leading businesses, which can also commission custom studies. However, J.D. Power also publishes select insights publicly through its press room, such as the New Vehicle Demand Forecast.

What is J.D. Power?

Michigan-based J.D. Power is a consumer data and analytics company that has been delivering detailed, objective studies across various industries since 1968. It started humbly at J.D. “Dave” Power III’s kitchen table, focusing on collecting consumer opinions about the automotive industry. The company’s services gained editorial acclaim in the 1970s when The Wall Street Journal referenced one of its first independently funded surveys in an article.

Although J.D. Power began expanding into other industries, the automotive sector remains one of its biggest strengths. The company gained significant recognition in the 1980s when Subaru highlighted its J.D. Power rankings during a Super Bowl XVIII commercial, firmly establishing J.D. Power as a key player in the automotive industry.

What is a J.D. Power Award?

J.D. Power began presenting awards in the 1980s to recognize and celebrate excellence in various industries based on its consumer satisfaction surveys and research. These accolades have since become highly esteemed, frequently mentioned in advertisements and commercials worldwide.

J.D. Power surveys

J.D. Power’s popularity stems from its ability to gather and present valuable consumer insights through its surveys. Companies rely on this feedback to understand what works and what needs improvement, yet customers may hesitate to provide it directly. J.D. Power bridges this gap with its expertise in collecting crucial customer information.

Many J.D. Power surveys are conducted and released annually. The findings are presented in an easy-to-understand format, allowing consumers to quickly identify top-performing companies. Companies receive J.D. Power ratings, or scores, ranking them within specific market sectors. Depending on the industry, J.D. Power may categorize companies by region to provide the most accurate analysis, acknowledging that a national company may perform differently across various areas.

A J.D. Power award or rating benefits both the companies receiving the accolades and consumers seeking information. To earn a J.D. Power award, companies are evaluated based on several focus areas. For instance, if you are shopping for a life insurance company, a carrier that ranks high in the Life Insurance Study has excelled in various categories, including policy options, customer communication, pricing, and claims process.

Industries J.D. Power serves

J.D. Power conducts market research across multiple industries, providing detailed insights into specific categories such as homeowners insurance. The various industries J.D. Power researches include:

  • Auto: Studies cover the state of the car market, vehicle sales and forecasts, customer satisfaction, and more.
  • Finance: Focus areas include the growing popularity of fintech, lending, and retail banking.
  • Insurance: Annual studies on automotive, home, and life insurance provide invaluable insights.
  • Healthcare: Research and data analysis focus on Medicare and other healthcare topics.
  • Travel: Customer satisfaction studies include ratings for airlines, rental car companies, and hotels.

Why J.D. Power is credible

J.D. Power studies are considered objective because they draw from extensive data sets rather than small samples. These studies gather responses from a broad spectrum of consumers nationwide and typically include comparisons across multiple companies.

According to its mission statement, J.D. Power aims to be a “truth finder.” The statement reads, “At J.D. Power, we are proud of the unbiased data and findings we provide. Every team member is dedicated to maintaining this objectivity and upholding the highest ethical and professional standards – the only ‘favorite’ we have is the truth.”

How uses J.D. Power

We often reference J.D. Power scores to gauge customer satisfaction with specific carriers. Similarly, we collect both quantitative and qualitative data about various companies and present the information in a way that readers can easily understand and use for comparison. Additionally, we incorporate customer complaint data from the National Association of Insurance Commissioners (NAIC) and financial strength ratings from leading credit-rating agencies such as AM Best and Moody’s.

Some of the J.D. Power annual surveys most frequently referenced by our insurance editorial team include:

  • J.D. Power Auto Claims Study: This study provides insights from policyholders about which companies handle car insurance claims most effectively.
  • J.D. Power Auto Insurance Study: This annual study measures customer satisfaction with different carriers, grouping results by regions such as New England, Southwest, Texas, California, Florida, and more.
  • J.D. Power Home Insurance Study: This study reveals which carriers customers are happiest with regarding homeowners or renters insurance.
  • J.D. Power Insurance Digital Experience Study: In today’s digital age, functional mobile apps and seamless online policy management portals are crucial. This study assesses how easy it is to do business with carriers online, both in shopping and customer service categories.
  • J.D. Power Insurance Shopping Study: Shopping for insurance can be complex. The companies that excel in this study are recognized for their success and innovation in providing a positive shopping experience.
  • J.D. Power Individual Life Insurance Study: This study measures customer satisfaction with life insurance and annuities, considering five factors: communication, interaction, price, product offerings, and statements. It uses responses from thousands of individuals across the country.