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Letter to the Editor

February 2005 Issue

Who Pays for What?

Results from INSIGHT's Annual Survey of P-Page Reimbursements

The results for INSIGHT's 2005 "Who Pays for What?" survey, included in the January issue, are in. The number of surveys returned this year was the highest ever.

The data from the returned surveys has been compiled into charts separated by the seven major insurance companies. The charts show payment for 36 of the most common non-included P-page items. However, an overall average of the responses is also included for comparison.

The overall percentage for "always pay" this year is 23.8%, down considerably from last year's 26.6%. The overall "never pay" percentage for 2005 is 43.8%, up only slightly from last year's overall percentage of 43%. The record breaking numbers of 2002 - a 30.3% overall "always pay" percentage and 42.1% "never pay" overall percentage - still have not been broken.

Two insurers stand out this year - the winner of the Fair Player Award, State Farm and the recipient of the Penny Pincher Award, Progressive. State Farm's average "always pay" percentage of 45% is way above the overall average of 23.8%. Its average "never pay" percentage, 26%, is below the overall average of 43.8%.

In contrast, Progressive's average "always pay" percentage is 13.9%, below the overall average AND below all of the other insurers. In fact, this year's "always pay" percentage is lower for Progressive than any other year since the insurer became a part of the survey.

Similarly, Progressive's average "never pays" percentage is higher this year than any other year ever - for any insurer. It is well above the overall average and more than double that of State Farm's. It is also down 24.7% from last year.

Allstate and USAA are the only two insurers to show an increase in their average overall "always pay" percentages. Allstate is up 3.2% from last year to an overall average of 21.2%. USAA is up 3.1% from last year, to a 29.7% average overall "always pay" this year. Average overall percentages for "never pay" are down for both insurers this year.

State Farm and USAA were the only two insurers with above average "always pay" percentages at 45% and 29.7% respectively. On the other hand Progressive, Nationwide, Farmers, and Allstate had above average "never pay" percentages. The overall "never pay" percentage was 43.8%. Progressive had an overall "never pay" average of 59.1%; Nationwide had a 49.9% average; Farmers average is at 46.1%; and Allstate is only slightly below this with a 46% average overall "never pay" percentage.

As is always the case, the overall "always pay" and "never pay" percentages are directly tied to the insurer's CSI score. As would be expected, State Farm had the highest CSI rating of 93%, and Progressive had the lowest at 35%.

Although State Farm's CSI rating is only up 4% from last year's 89% approval rating, it is the highest CSI score ever received. This type of customer satisfaction has earned State Farm the Fair Player Award six years in a row.

In contrast, Progressive's CSI rating is the lowest ever reported at 35%. This is even low for Progressive, which has received at least a 45% approval rating over the last five years. In fact, this is down 22% from last year.

USAA wins the Most Improved Insurer Award this year. USAA's ratings have gone up rather consistently each year since 2001. This year its approval rating is 74%, up 7% from last year's 69%.

CSI ratings for Farmers, GEICO, and Nationwide have all decreased from last year - 9%, 3%, and 6% respectively. Allstate's CSI is up 2% from last year, but down from its all time high approval rating of 62% in 2001. o

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