Canadian Direct Insurance, Promutuel and RBC Insurance Each Rank Highest
in Customer Satisfaction In Their Respective Regions
TORONTO, Sept. 15, 2011 /CNW/ - Despite widespread premium increases,
customers in the Western and Ontario/Atlantic regions of Canada are
notably more satisfied with their auto insurance company, compared with
2010, according to the J.D. Power and Associates 2011 Canadian Auto
Insurance StudySM released today.
The study, now in its fourth year, measures insurance customers'
experiences with their primary insurer. Customer satisfaction is
measured across five factors: interaction; price; policy offerings;
billing and payment; and claims. Insurers are ranked in customer
satisfaction in three regions: Western (British Columbia; Alberta,
Saskatchewan and Manitoba); Ontario/Atlantic; and Quebec.
National overall satisfaction averages 740 on a 1,000-point scale in
2011—13 points higher than in 2010. Primarily driving this increase are
considerable improvements in the Western and Ontario/Atlantic regions,
while satisfaction in Quebec decreases slightly from 2010.
Customer Satisfaction with Insurance Companies by Region, 2011 vs. 2010
(based on a 1,000-point scale)
Overall Satisfaction in 2011
Overall Satisfaction in 2010
Overall, satisfaction in the interaction and price factors has increased
significantly in 2011. Satisfaction in the interaction factor averages
801 and satisfaction in price averages 678 (each up by 22 points from
These improvements have occurred despite large proportions of customers
indicating they experienced a premium increase during the past 12
months. Overall, more than one in four (26%) auto insurance customers
say they experienced an insurer-initiated premium increase. Incidence
of these increases varies widely by region. While 34% of customers in
Ontario/Atlantic Region have experienced a premium increase, incidence
in the Western Region averages 19 percent. In the Quebec Region, 14
percent of customers have experienced an increase in their property
damage coverage premiums, which are handled by private insurers in the
"Despite the relatively large proportion of customers who have
experienced a premium increase, some auto insurance companies were able
to mitigate the negative impact on satisfaction by providing proactive
communications and helping customers explore various options for
reducing costs," said Lubo Li, senior director and practice leader of
Canadian financial services and insurance at J.D. Power and Associates.
"When insurers notify customers of premium increases in advance and
provide an explanation of their available options, there is a lift in
price satisfaction of more than 100 points, on average, compared with
satisfaction among customers who don't receive any advance
According to Li, the percentage of customers who receive this advance
notification of premium increase and a coverage/discount option
discussion remains relatively low—16 percent, on average—leaving ample
opportunity for improvement in this area.
In the Western Region, Canadian Direct Insurance ranks highest in
customer satisfaction among auto insurance companies with a score of
801 and performs particularly well in four of the five factors: policy
offerings; billing and payment; price; and claims. The Co-operators
(782) and Johnson Insurance (781) follow in the rankings. The
Co-operators performs particularly well in the interaction factor.
In the Ontario/Atlantic Region, RBC Insurance ranks highest with a score
of 768 and performs particularly well in the policy offerings, billing
and payment and claims factors. Johnson Insurance (765) and
Belairdirect (762) rank second and third, respectively, in the region.
In Quebec, Promutuel ranks highest with a score of 846 and performs
particularly well in three of the five factors: policy offerings;
billing and payment; and interaction. Following in the rankings are The
Personal (841) and Industrial Alliance (830). The Personal performs
particularly well in the price factor.
J.D. Power and Associates offers the following tips to auto insurance
Request an annual policy review if your insurance company doesn't offer
one. Make sure you inquire about additional policy lines and coverage
options that may fit your needs.
Ask your insurance company about the discounts they offer, such as those
for multiple vehicles, bundled home and auto policies or for being a
Many insurers offer multiple channels to communicate with customers.
Don't rely solely on the channel you used to buy your policy if you
need to make an inquiry or solve a problem. If you purchased coverage
online, try speaking directly to an agent or representative. This could
result in faster resolution of your problem.
The 2011 Canadian Auto Insurance Study is based on responses from 11,286
auto insurance policyholders. The study was fielded in July 2011.
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is
a global marketing information services company providing forecasting,
performance improvement, social media and customer satisfaction
insights and solutions. The company's quality and satisfaction
measurements are based on responses from millions of consumers
annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global financial
information and education company that helps professionals and students
succeed in the Knowledge Economy. With leading brands including
Standard & Poor's, McGraw-Hill Education, Platts energy information
services and J.D. Power and Associates, the Corporation has
approximately 21,000 employees with more than 280 offices in 40
countries. Sales in 2010 were $6.2 billion. Additional information is
available at http://www.mcgraw-hill.com.
SOURCE J.D. Power and Associates
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