RBC Insurance Ranks Highest in Auto Insurance Claims Satisfaction in
Overall customer satisfaction with the auto claims experience averages
787 (on a 1,000-point scale).
Satisfaction varies greatly by province, ranging from a high of 840 in
Quebec to a low of 753 in Manitoba.
The study finds that 90 percent of customers are satisfied with the
settlement of their auto insurance claim.
TORONTO, July 29, 2013 /CNW/ - How well auto insurance providers handle
claims may make or break the relationship with their customers,
according to the J.D. Power 2013 Canadian Auto Claims Satisfaction
StudySM released today.
The inaugural study measures customer satisfaction with the claims
experience for auto physical damage loss. Depending on the complexity
of the claim, a claimant may experience some or all of the following
factors that are measured in the study: first notice of loss; service
interaction; appraisal; repair process; rental experience; and
settlement. Settlement is the most important factor of overall
satisfaction among both total loss and repair claimants.
Although settlement is the most important factor, the first notice of
loss (FNOL)—the first phone call a customer makes to their insurance
provider after they have been in a vehicle accident or experienced
damage to their car—sets the tone for the rest of the claims process.
The first phone call averages 18 minutes, according to the study.
"The first call to notify the provider of the damage is critical to
customer satisfaction with the entire claims process," said Jeremy
Bowler, senior director of the insurance practice at J.D. Power. "If
that initial call goes well, odds are good that the claims process will
go well and also bodes well for the long-term relationship with the
Bowler notes that anyone involved in an accident or who experiences
damage to their vehicle should contact their insurer or agent as soon
as possible after the incident, even if the damage is not their fault.
Before calling their provider, it's a good idea to write down any
questions regarding the claim and keep notes on the answers received.
The study finds that claimants who receive an explanation during the
first call with their provider of what to expect during the claims
process are significantly more satisfied than are claimants who do not
receive this explanation. While a majority (87 per cent) of claimants
receive an explanation, overall satisfaction declines by a substantial
169 index points, on average, when claimants don't receive an
explanation of the process.
Additionally, overall satisfaction is higher when insurers are able to
answer all claimant questions during the first call than when they are
not able to answer all questions. Satisfaction among claimants who
have all of their questions answered during the first call averages
810, compared with an average of 651 among claimants who do not get all
of their questions answered during this call.
"Filing a claim can be a stressful situation, so it's easy to forget to
ask key questions or get confused about the information the insurer
provides during the call," said Bowler. "Keeping good records of all
calls regarding the incident is helpful for reference later in the
claims process, if necessary. It is also advisable for claimants to
take pictures of the vehicle damage for their records."
The settlement process focuses on identifying the expenses the insurance
company will cover, including damage to the vehicle, the facility where
repairs will be made, and, if needed, a tow truck and rental car.
Managing claimants' expectations regarding the settlement—and avoiding
surprises—is critical to a satisfying settlement experience. The study
finds that, overall, 90 per cent of claimants are satisfied with the
settlement—which is the largest contributor to overall satisfaction
with the claims process. However, when expectations are not met,
settlement satisfaction declines dramatically, by more than 250 index
points, on average.
"Communication between the provider and the claimant is critical during
the settlement phase," said Bowler. "The claimant wants to know what is
and isn't covered by their policy, the extent of the damage to the
vehicle, and how and when it will be repaired or replaced. It's really
about setting claimants' expectations and then meeting them."
While claimants are most satisfied with the repair process, which
averages 805 index points, satisfaction with the appraisal process—when
the vehicle's damages are assessed by a representative of the insurer
—is lower than for any other factor in the study.
"Insurance is a product people buy because they have to, but hope they
never need to use," said Bowler. "They really see the value of their
investment if they need to file a claim. If the appraisal of damages
comes in lower than what they expect, they are naturally going to be
Overall customer satisfaction with the auto claims experience in among
Canadian provinces included in the study averages 787. Satisfaction
varies greatly by province, ranging from a high of 840 in Quebec to a
low of 753 in Manitoba. Among other provinces, Ontario averages 800;
Alberta 770; British Columbia 767; and Saskatchewan 760.
Among the eight rank-eligible insurance providers included in the study,
RBC Insurance ranks highest in overall customer satisfaction with the
claims process with an index score of 815. RBC Insurance performs
particularly well in the first notice of loss and settlement factors.
Intact Insurance ranks second with 806, followed by Aviva Insurance
(803), State Farm (802) and TD Insurance (796).
Based on a 1,000-point scale
J.D. Power.com Power Circle
Power Circle Ratings Legend:
5 - Among the best, 4 - Better than most, 3 - About average, 2 - The
Making the Auto Insurance Claims Process Smoother and Easier
J.D. Power offers the following tips to auto insurance customers when
filing a claim:
Call the police for any auto accident that results in more than minor
damage to the vehicle (more than $500 is a suggested amount).
Take down the names and addresses of individuals involved; the accident
location; the make, model and plate number of the vehicle(s); names and
contact information of any witnesses; and make note of any injuries
Ask the police to file an accident report, or at least an incident
report, so that there is a record to provide to your insurance company.
Always get a copy of the police report if you are involved in a
Contact your insurer or agent as soon as possible after the incident,
even if the other party is at fault. This will allow your insurer to be
better able to protect your interests.
If possible, contact your insurer or agent from the location where the
Take photos of damage to your vehicle using a device such as a cell
phone or tablet or a regular camera.
Keep records of all calls regarding the incident.
If you have questions about the insurance adjustor's appraisal, contact
your insurer or agent directly.
The 2013 Canadian Auto Claims Satisfaction Study is based on responses
from 2,458 auto insurance customers in Canada who settled an auto
insurance claim within the past 18 months. The study excludes claimants
whose vehicle incurred only glass/windshield damage or was stolen, or
who filed a roadside assistance claim only. The study was fielded
between April and June 2013.
About J.D. Power
J.D. Power is a global marketing information services company providing
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. Headquartered in Westlake Village, Calif., J.D. Power has
offices in North America, Europe and Asia Pacific. For more information
on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power is a business unit of McGraw Hill Financial.
About McGraw Hill Financial
McGraw Hill Financial (NYSE: MHFI) is a leading financial intelligence
company providing the global capital and commodity markets with
independent benchmarks, credit ratings, portfolio and enterprise risk
solutions, and analytics. The Company's iconic brands include: Standard
& Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices,
Platts, CRISIL, J.D. Power, and McGraw Hill Construction. The Company
has approximately 17,000 employees in 27 countries. Additional
information is available at www.mhfi.com.
SOURCE: J.D. Power and Associates
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