INScompanies Blog

Evaluation demonstrates PEMCO’s commitment to quality

February 21, 2006

SEATTLE – Many companies advertise great service, but how many have been recognized for this by a non-partial third party such as J.D. Power and Associates? PEMCO Insurance is part of an elite class of companies that have been recognized by J.D. Power and Associates for its Call Center Customer Satisfaction Excellence.

To receive recognition, companies must score higher than 730 out of a possible 1000 points. PEMCO received 911 points, a score that was noted as unusually high by J.D. Power and Associates.

“We come to work every day committed to giving our customers the absolute highest level of service and value,” said Jon Osterberg, PEMCO spokesperson. “This certification demonstrates that. Service is the bedrock of PEMCO’s culture, and it’s extremely gratifying to see our customers recognize that.”

J.D. Power and Associates’ evaluation was conducted in two phases. The first phase looked at PEMCO’s recruiting, training, employee incentives, management roles and responsibilities, and quality assurance capabilities.

The second phase of the study surveyed 400 random callers that contacted PEMCO’s call center from December 1, 2005 to December 13, 2005.

Results revealed in the report showed there is an awareness of and sensitivity to the situations their clients are dealing with and an embedded philosophy of going beyond to please the customer.
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The report also said PEMCO’s operations demonstrate a remarkably strong commitment to the satisfaction of their customers, resulting in uniquely high levels of satisfaction among them.

Almost 90 percent of callers gave PEMCO’s customer service representatives the highest ratings in all areas of evaluation that included:

• Courtesy of the customer service representative
   (CSR)
• Knowledge of PEMCO’s services and practices by
   the CSR
• Concern for resolving the customer’s questions
   and/or problem
• Usefulness of the information provided by the CSR
• Convenience of customer service operating hours
• Ease of getting through to a CSR
• Timely resolution of the customer’s problem,
   question, or request.

“We’ll use this rating as a benchmark to help us strive for higher service marks in the future,” said Osterberg. “We’re proud of this certification, but we’ll do even better.”

In 2004, J.D. Power and Associates’ Call Center Certification program was launched to help call centers increase efficiency and effectiveness by establishing best practices for handling service calls.

About PEMCO Insurance
PEMCO Insurance, established in 1949, is a Seattle-based provider of auto, home, boat, life, and umbrella insurance to Washington state residents. PEMCO Insurance is sold by community agents throughout the state and through PEMCO offices. For more information, visit www.pemco.com.

PEMCO’s Northwest Insurance Poll reveals most Washington residents believe owning a hybrid will save money; research shows owners will have to be patient

April 10, 2006

SEATTLE – Most new-car buyers in Washington who are likely to buy a hybrid share a common misconception that owning a hybrid car will save them money through better mileage, according to PEMCO’s Northwest Insurance Poll. The reality is that while the increased purchase cost of a hybrid can be offset in gas savings, it can take up to five years before the savings pencil out, according to published reports.

PEMCO’s poll data shows that 47 percent of drivers who plan to purchase a new car in the next year, and who are likely to buy a hybrid, report the primary reason they would buy a hybrid is to improve gas mileage. Twenty-two percent say their primary reason would be to save the environment, while 19 percent specifically said “to save money.”

“New-car buyers can consider hybrids because they reduce pollution and save the environment, but they shouldn’t expect to save money in the short-term,” said Jon Osterberg, PEMCO’s spokesperson. “Our poll data uncovered false expectations. Forty-four percent said a hybrid would cost less than a conventional car to drive and maintain.”

Consumers should be aware that in a recent study commissioned by the nation’s leading consumer magazine, only two of six hybrid cars that were tested recovered the price premium in less than five years. Five years is also the typical period of car ownership, according to the magazine.

In the coming months and years, virtually every car manufacturer has plans to introduce a hybrid car model. In 2005, hybrid cars accounted for 1.2 percent of auto sales – more than double its market share from 2004. Auto manufacturers are having a hard time keeping them on the lot.

Those looking to save money by purchasing a hybrid car need to know that hybrids can cost anywhere from $2,000 to $8,000 more than their gas-powered counterparts.

The timing of a hybrid car purchase also plays into savings. To help ease higher initial fees, new hybrid-car owners currently can take advantage of federal tax credits ranging from $650 to $3,150. Consumers should know that after each manufacturer sells 60,000 hybrid units, regardless of model, the credits gradually will be phased out.

In most cases, the tax credits offered on hybrids, combined with money saved on gasoline, are not enough to recover the purchase price during the first several years of owning the car.

Despite the perceived cost savings, over half of Washington’s residents who plan to purchase a new car this year do not plan to purchase a hybrid, according to PEMCO’s poll data.

“With such rapid growth of the hybrid car market, it’s important for consumers to have realistic expectations. Hybrid cars can save owners money, but not as soon as most people think,” said Osterberg.

Other poll observations:

• Older drivers (age 35+) in Washington state are
   more likely to purchase a hybrid car than younger
   drivers (ages 18 – 34).
• 46 percent of Washington drivers who are likely to
   purchase a hybrid in the next year have a college
   degree, 37 percent report having some college or
   technical education, and 24 percent have no
   college education.
• Washington state drivers who own their home, and
   who plan to purchase a new car in the next year,
   are almost twice as likely to purchase a hybrid car
   as those drivers who rent their home (43 percent of
   owners compared to 23 percent of renters).

Anyone wanting to compare their answers with respondents to the PEMCO Northwest Insurance Poll can do so by visiting www.pemco.com, where complete results are posted.

About the poll
PEMCO Insurance commissioned the independent, statewide survey that asked Washington homeowners several questions about automobiles and other issues.

Informa Research Services Inc. of Seattle conducted the poll. The sample size, 606 respondents, yields an accuracy of +/- 4 percent at the 95 percent confidence level. In other words, if this study was conducted 100 times, in 95 instances the data will not vary by more than +/- 4 percent.

About PEMCO Insurance
PEMCO Insurance, established in 1949, is a Seattle-based provider of auto, home, boat, life, and umbrella insurance to Washington residents. PEMCO Insurance is sold by community agents throughout the state, as well as through PEMCO offices. For more information, visit www.pemco.com.

August 8, 2006

SEATTLE – Every year Washington residents end up with millions of dollars in uninsured losses that could be prevented. According to a poll commissioned by PEMCO Insurance, there is widespread misunderstanding of what’s covered under a renter’s insurance policy.

The poll, which surveyed 600 residents statewide, indicates slightly more than half of the renters in Washington opt to forgo renter’s insurance despite national statistics that show rented households are burglarized at rates 79 percent higher than residents who own property.

“Our poll revealed many renters don’t have a complete picture of the coverage they have outside of a renter’s policy,” said Jon Osterberg, PEMCO spokesperson. “One of the most troubling aspects is that many renters in Washington think they have coverage from other sources when, in fact, they don’t.”

According to the PEMCO Northwest Insurance Poll, six percent of those who do not have renter’s insurance think their landlord’s policy will cover their personal belongings. Thirty-three percent of respondents cited the reason they don’t have renter’s insurance is because it’s too expensive, while 27 percent said they don’t have enough property to warrant a renter’s policy.

A renter’s policy protects a tenant’s personal property, and it offers liability protection in case someone gets hurt while at the insured location.

“A landlord protects only his interest in the property – that typically means structural damage to the property is covered, not the tenant’s personal belongings,” said Osterberg.

Renters with a policy might be surprised to learn they have more coverage than they think. Only 28 percent of poll respondents with a renter’s policy understand that most personal property in their car is also covered under a renter’s policy.

According to the U.S. Department of Justice, theft from a motor vehicle occurs at almost twice the rate for renters than for those who own their home.

While an auto policy will only cover what is attached to the vehicle, items such as a laptop are protected under a renter’s insurance policy.

Case in point
Joy Portella, a 34-year-old Seattle resident, recently moved to the area. One morning, she discovered one of her car windows was broken.

“I found an unexpected surprise; it was a basketball-sized rock sitting in my passenger seat,” said Portella. “The night before, I left a Nordstrom gift box sitting in my car that probably looked attractive.”

Portella later found out her auto policy would not cover her personal items that were stolen.

“I did not know my auto policy would not cover this, but a renter’s policy would if I had one,” said Portella. “It isn’t anything I gave much thought to, but now wished I had.”

Unfortunately, Portella is not alone. PEMCO’s poll data showed that only 45 percent of renters have a renter’s insurance policy.

Why is a rental policy important?
“Most people dramatically underestimate the value of their household belongings,” said Osterberg. “The average renter has more than $20,000 in possessions, and in the case of a fire or other significant insurable event that can destroy an apartment, that can be a big blow without insurance.”

Personal property protection under a renter’s policy covers furniture, appliances, clothing, and household goods from fire, theft or vandalism. Other items such as jewelry, furs, guns, silverware, computers, and business equipment also are covered, but have special limitations.

“Renters can expect to pay around $10-$13 a month, or $130-$160 annually for about $40,000 of property coverage,” said Osterberg. “In many cases, when consumers have an auto policy, or any other policy with the same insurance company, they’ll get a discount that partially offsets the cost of the renter’s policy.”

Consumers can see how their perceptions of renter’s insurance compare by visiting www.pemco.com, where complete results of the PEMCO Northwest Insurance Poll are posted.

About the poll
PEMCO Insurance commissioned the independent, statewide survey that asked Washington homeowners several questions about home maintenance and other issues.

Informa Research Services Inc. of Seattle conducted the poll. The sample size, 606 respondents, yields an accuracy of +/- 4 percent at the 95 percent confidence level. In other words, if this study was conducted 100 times, in 95 instances the data will not vary by more than +/- 4 percent.

About PEMCO Insurance
PEMCO Insurance, established in 1949, is a Seattle-based provider of auto, home, boat, life, and umbrella insurance to Washington state residents. PEMCO Insurance is sold by community agents throughout the state and through PEMCO offices. For more information, visit www.pemco.com.