Auto insurer satisfaction improving: J.D. Power study

Directs continue to receive highest rankings in 3 regional divisions

Consumer satisfaction with auto insurance has increased in all regions of the country, according to a study conducted by J.D. Power & Associates. The study’s authors credit fewer premium increases and a richer variety of policy offerings as reasons for the improvement over last year.

(Compare with 2011 results here.)

Now in its fifth year, the 2012 Canadian Auto Insurance Satisfaction Study, showed considerable improvements in satisfaction in the Ontario/Atlantic and Quebec regions and a smaller increase in the Western region (British Columbia, Alberta, Saskatchewan and Manitoba). This marks the third year in a row that satisfaction scores have increased.

The study measures insurance customers’ experiences with their primary insurer. Satisfaction is measured across five factors: interaction; price; policy offerings; billing and payment; and claims.

According to the study, the Western region has the smallest increase of five points. This is due primarily to a higher number of insurer-initiated premium increases, says J.D. Power. One-fourth of customers in this region reported an insurer-initiated increase in 2012, compared with only 18% in 2011, the only region with a higher frequency of premium increases compared to 2011.

Read: 4 discounts for personal auto clients

Customer satisfaction in the Ontario/Atlantic region has increased by 11 points from 2011, primarily due to an increase in satisfaction with insurer policy offerings (+17 points). Policy offering satisfaction is most often influenced by the quality of discounts offered, say the authors. In fact, 60% of customers in this region received multiple (three or more) discounts on their policy, a six-percentage-point increase from 2011. Nearly 30% of customers reported an insurer-initiated rate increase in 2012, representing a four-percentage-point decrease from 2011.

Read: IBC Ontario outreach campaign

Satisfaction in the Quebec region has increased by 17 points, which is the largest increase in score among regions from 2011. Satisfaction increases in billing and payment (+21 points), as well as price (+19 points), which significantly impacts overall satisfaction. Only 11% of customers in the Quebec region reported an insurer-initiated rate increase, the fewest among the three regions and a three-percentage-point decrease from 2011.

Customer Satisfaction with Insurance Companies by Region, 2012 vs. 2011
 (based on a 1,000-point scale)

Region

Overall Satisfaction in 2012

Overall Satisfaction in 2011

Difference

Western

714

709

+5

Ontario/Atlantic

755

744

+11

Quebec

827

810

+17

“Although overall satisfaction has increased in the Western region, the uptick in insurer-related premium increases has been marginal,” said Lubo Li, senior director and practice leader of Canadian financial services and insurance at J.D. Power and Associates. “Satisfaction has significantly improved in both the Ontario/Atlantic and Quebec regions, not only because of fewer insurer-initiated premium increases, but also due to increases in satisfaction in nearly every factor across the board.”

Direct Dominance

Of note for the independent broker channel, direct insurers ranked at or near the top for satisfaction with individual companies in all three regions of the country. In the Western region, Canadian Direct Insurance ranks highest in customer satisfaction among auto insurance companies for a second consecutive year with a score of 806. State Farm (778) and TD Insurance (773) follow. In the Ontario/Atlantic region, Grey Power ranks highest with a score of 786, followed by The Co-Operators (774). Belairdirect and Zenith (768) rank third in a tie. In the Quebec region, La Capitale ranks highest with a score of 850, followed by The Personal (842) and Desjardins General Insurance (832).

The 2012 Canadian Auto Insurance Study is based on responses from 11,620 auto insurance policyholders. The study was fielded in June and July 2012.

Customer Satisfaction Index Ranking  J.D. Power.com Power Circle Ratings
Quebec Region   

For Consumers

La Capitale

850

5

Personal

842

5

Desjardins General Insurance

832

3

SSQ General

831

3

Belairdirect

828

3

Promutual

828

3

Quebec Average

827

3

Industrial Alliance

823

3

Intact Insurance

818

3

L’Union Canadienne

817

3

National Bank Insurance

817

3

Aviva Insurance

805

2

TD Insurance

764

2

 

Customer Satisfaction Index Ranking  J.D. Power.com Power Circle Ratings
Atlantic/Ontario Region   

For Consumers

Grey Power

786

5

Co-operators

774

4

Belairdirect

768

4

Zenith Insurance

768

4

State Farm

766

4

Portage Mutual Insurance

764

4

RBC Insurance

760

3

Allstate

759

3

Personal

759

3

Atlantic/Ontario Average

755

3

Intact Insurance

754

3

Johnson Insurance

754

3

Economical Insurance

754

3

CAA Insurance

750

3

Gore Mutual

749

3

Aviva Insurance

741

2

Wawanesa

741

2

RSA

739

2

TD Insurance

739

2

Dominion of Canada

731

2

Desjardins General Insurance

729

2

 

Customer Satisfaction Index Ranking  J.D. Power.com Power Circle Ratings
Western Region   

For Consumers

Canadian Direct Insurance     806

5

State Farm

778

4

TD Insurance

773

4

BCAA

763

4

Co-operators

759

4

Johnson Insurance

751

4

Alberta Motor Association

750

4

Wawanesa

741

4

Intact Insurance

739

4

Aviva Insurance

730

4

Western Average

714

3

SGI

699

3

MPI

697

3

ICBC

651

2

(source for all tables: J.D. Power & Associates)

 

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