Survey Reveals New Information about Perception of Homeowner’s and Renter’s Insurance in the State of Louisiana
Little Support for Government Regulation of the Insurance Market.
CHICAGO — Louisianians who live inland and those who live along the Louisiana coast have different views on key aspects of homeowner’s and renter’s insurance, according to a new survey of registered Louisiana voters by NORC at the University of Chicago. In several points of agreement, however, there is little support for regulation of the insurance market by the state government and a strong preference for a competitive marketplace in setting prices.
Louisianians who live inland and those who live along the Louisiana coast have different views on key aspects of homeowner’s and renter’s insurance, according to a new survey of registered Louisiana voters by NORC at the University of Chicago. In several points of agreement, however, there is little support for regulation of the insurance market by the state government and a strong preference for a competitive marketplace in setting prices.
The survey was done by the independent research organization NORC at the University of Chicago.
Due to frequent natural disasters, homeowner’s and renter’s insurance in many states, including Louisiana, is highly regulated. To understand public perception of the impact of state regulation—including pricing, competition, and service—NORC, with funding from State Farm Fire and Casualty Company, conducted a representative household survey of registered voters in Louisiana. The results reveal the extent to which registered voters understand homeowner’s insurance policies and pricing, and the role of government regulation.
“Every homeowner is familiar with the need for, and ongoing expense of, property insurance,” said Angela Fontes, NORC senior economist and director of the research. “At the same time, there is concern about the extent of state regulation of the insurance industry and its role in setting the cost of coverage. This survey reveals details about public perception of important aspects of property insurance and the forces shaping the market for it in the state of Louisiana. These results will be useful to those who set policy and make business decisions regarding this important industry.”
Key findings of the survey reveal:
- Attitudes about insurance and its cost are strongly affected by where a homeowner or renter lives, with the data showing differences across the board between those who live inland and those who live in coastal regions of Louisiana.
- There is little support for government regulation of insurance prices, with only 20 percent of registered voters indicating the government should be responsible for setting prices. Only 16 percent of coastal residents voiced such support versus 21 percent of inland residents.
- More than half those surveyed said insurance companies in a competitive market should be responsible for setting prices.
- Overall, 49 percent feel the price of homeowner’s insurance is fair, with the inland versus coastal split standing at 42 percent (inland) and 53 percent (coastal).
- Just over half of the respondents (52 percent) agreed that consumers who submit a higher number of claims should pay higher prices. When asked if those living in an area prone to catastrophe should pay higher prices, 34 percent of coastal registered voters disagreed while only 17 percent of inland registered voters disagreed.
- While many registered voters said they feel they have enough choices when selecting an insurer (66 percent), 71 percent favored having more national companies offering coverage in their area. Coastal respondents were twice as likely as inland respondents to report not having enough choice (37 percent to 15 percent).
- In terms of satisfaction with service, coastal respondents report substantially lower levels of satisfaction on all service metrics, with between 10 and 15 percent fewer coastal registered voters reporting high levels of satisfaction, high likelihood to remain a customer of their current insurer, or high likelihood to recommend their current insurer than non-coastal registered voters. (Overall, 57 percent reported high satisfaction.)
About the Survey
The survey of 700 respondents representing a random sample of registered voters in Louisiana was conducted from February through April 2016. Insurance industry experts were consulted to help frame the issues. Questionnaire design, execution of the survey, analysis of results, and the final report are exclusively a product of NORC, and all details are available to the public. The overall margin of error was +/- 3.7 percentage points.
“This survey reveals details about public perception of important aspects of property insurance and the forces shaping the market for it in the state of Louisiana. These results will be useful to those who set policy and make business decisions regarding this important industry.”
About NORC at the University of Chicago
NORC at the University of Chicago conducts research and analysis that decision-makers trust. As a nonpartisan research organization and a pioneer in measuring and understanding the world, we have studied almost every aspect of the human experience and every major news event for more than eight decades. Today, we partner with government, corporate, and nonprofit clients around the world to provide the objectivity and expertise necessary to inform the critical decisions facing society.
Contact: For more information, please contact Eric Young at NORC at young-eric@norc.org or (703) 217-6814 (cell).