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J.D. Power Reports: One in 10 Canadian Customers SwitchAuto Insurance Carriers
784
www.mhfi.com
Regional Rankings
TD Insurance
Belairdirect
5
778
748
National Bank Insurance
801
The study, now in its seventh year, measures insurance customer experiences with their primaryauto insurer in Canada. Customer satisfaction is measured across five factors (in order ofimportance): interaction; price; policy offerings; billing and payment; and claims. Insurers areranked in three provinces: Ontario, Alberta and Quebec.
Alberta Motor Association
Dominion of Canada
745
2
719
TORONTO--(BUSINESS WIRE)--One in five auto insurance customers in Canada have shopped for anew insurer in the past 12 months and 9 per cent have switched, according to the J.D. Power 2014Canadian Auto Insurance Satisfaction StudySM released today.
837
3
J.D. Power.com Power Circle RatingsTM
3
3
L'Union Canadienne
749
4
Â
798
4
Belairdirect
746
3
Johnson Insurance
Â
3
Wawanesa
Co-operators
KEY FINDINGS
770
2
3
782
747
Industrial Alliance
3
3
Â
740
http://www.jdpower.com/about-us/press-release-info
2
Price, historically a key differentiator among insurance companies, is having less impact on overallcustomer satisfaction. Price satisfaction is highest in Quebec, primarily because the governmentinsures against injuries to people, thus bodily injury coverage is not required for vehicle owners,keeping premiums lower than in other provinces. In Ontario, auto insurance is regulated by theFinancial Services Commission of Ontario, which in 2013 implemented its Auto Insurance Cost andRate Reduction Strategy, contributing to an increase in price satisfaction of 6 points (on a 1,000-point scale).
4
3
3
4 - Better than most
Quebec Average
Ontario
Ultimately, each insurance company conquests less than an average of 1 per cent of customersshopping for a new insurance policy. Brand awareness limits most carriers' ability to attractshoppers, as they typically limit their search to an average of only 1.5 quotes.
3 - About average
763
4
Â
Customer satisfaction in Ontario averages 749, down 7 points from 2013. Belairdirect (784) rankshighest in Ontario, followed by CAA Insurance Company (778) and State Farm (773).
The 2014 Canadian Auto Insurance Satisfaction Study is based on responses from nearly 9,910 autoinsurance policyholders. The study was fielded in January and February 2014.
RSA
2
Â
5
Â
4
753
3
Intact Insurance
CAA Insurance Company
Overall Customer Satisfaction Index Scores
794
About J.D. Power and Advertising/Promotional Rules
J.D. Power.com Power Circle RatingsTM
793
Â
Â
Allstate
4
752
773
747
Overall Customer Satisfaction Index Scores
(Based on a 1,000-point scale)
805
Grey Power
734
778
Â
RBC Insurance
Study Rankings
Aviva Insurance
Alberta
729
777
3
About McGraw Hill Financial
800
Â
Intact Insurance
725
3
Â
Note: Included in the study but not ranked due to sample size are Allstate, Canadian Direct,Dominion of Canada, Economical Insurance, RBC Insurance and State Farm.
Wawanesa
Co-operators
La Capitale
Â
Power Circle Ratings Legend
(Based on a 1,000-point scale)
Customer satisfaction in Quebec improves 2 points in 2014 to 804. In Quebec, The Personal rankshighest for a second consecutive year, with a score of 837. La Capitale ranks second (821) andDesjardins General Insurance (805) third.
2
3
Economical Insurance
Â
749
767
Desjardins General Insurance
Gore Mutual
Â
Note: Included in the study but not ranked due to sample size are Primmum and Zenith Insurance.
Â
3
734
State Farm
821
Overall Customer Satisfaction Index Scores
For Consumers
Â
Alberta Average
Â
3
Intact Insurance
TD Insurance
Â
Quebec
750
"Even the largest national insurance companies have limited awareness," said Jeremy Bowler, seniordirector of the insurance practice at J.D. Power. "Some of the big carriers may be well-known in onecity or province, but have little or no awareness outside of that market. To grow their business, theyneed to build brand awareness, which traditionally requires significant advertising investment."
3
For Consumers
The Personal
740
Across the three provinces in the study, overall customer satisfaction drops to 758 in 2014 from 766in 2013. Declines in satisfaction with claims (-29 points), interaction (-13) and billing and payment (-12) account for the majority of the year-over-year drop. Price is the only factor in which satisfactionimproves.
5
3
(Based on a 1,000-point scale)
The Personal
3
Johnson Insurance
804
The average growth rate among all insurers included in the study is 4 per cent. The largest growthrate is 24 per cent, while the largest attrition rate is 11 per cent.
Aviva Insurance
Ontario Average
736
Â
Â
2
Note: Included in the study but not ranked due to sample size are Allstate, Promutuel, SSQ Generaland Wawanesa.
For Consumers
3
TD Insurance
2
J.D. Power.com Power Circle RatingsTM
Customer satisfaction in Alberta averages 744, down 3 points from 2013. Co-operators ranks highestin customer satisfaction in Alberta with a score of 782. Alberta Motor Association ranks second(770), followed by Johnson Insurance (754).
Desjardins General Insurance
Once an insurer wins a new customer, every touch point they have with that customer is crucial andcan be the difference between a loyal customer and a defector. Study findings show that the threemost critical touch points are the annual or semi-annual renewal notice; when a customer contactstheir insurer for non-claims-related reasons (62 per cent of customers have contacted their insurereither directly or through an agent in the past 12 months regarding a non-claim-related issue); andwhen a customer files a claim (12 per cent of customers filed an auto claim in the past year).
5
Â
744
Aviva Insurance
3
754
2 - The rest