Grey Power and Intact Insurance Each Rank Highest in Customer
Satisfaction In Their Respective Segments
TORONTO, Aug. 26 /CNW/ - Customer satisfaction with auto insurance
providers has improved notably from 2009, despite a considerable
increase in the proportion of customers whose premiums were raised,
according to the J.D. Power and Associates 2010 Canadian Auto Insurance
Customer Satisfaction StudySM released today.
The study, now in its third year, measures auto policyholder experiences
with their primary insurer. Customer satisfaction is measured across
five factors: interaction; price/premium; policy offerings; billing and
payment; and claims. Three segments are examined in the study: private
full coverage auto insurers,1 Quebec private auto insurers
and government-run auto insurers.2
Overall satisfaction averages 727 on a 1,000-point scale in 2010—26
points higher than in 2009. In each of the three segments, customer
satisfaction improves notably from 2009.
Customer Satisfaction with Insurance Providers by Segment, 2010
(based on a 1,000-point scale)
Private Full Coverage Segment
Quebec Private Segment
In all three segments, overall improvement is driven in large part by
increased satisfaction in the price factor, despite the fact that a
sizable proportion of policyholders indicate experiencing an increase in
premiums from 2009. Overall, nearly four in 10 policyholders say their
premiums increased in 2010. This proportion is even higher among
customers of private full coverage providers—nearly one-half of these
policyholders indicate experiencing a premium increase.
"Although premium increases have a negative impact on customer
satisfaction, this can be mitigated through proactive communication in
which customers are notified of changes in advance and are contacted by
insurers to discuss coverage or discount options to help them reduce
costs," said Lubo Li, senior director and practice leader of Canadian
financial services and insurance at J.D. Power and Associates. "These
actions demonstrate that insurers have regard for the best interests of
policyholders and help to foster trust."
Among the 61 percent of policyholders who were notified of a rate
increase in advance in 2010, satisfaction averages 721. In contrast,
satisfaction averages only 628 among policyholders who didn't receive
any advance notification of a rate increase.
"Auto insurance providers may be able to take lessons learned about rate
increase communication and apply them to their advantage when new
options under the Ontario insurance reforms take effect on September 1,"
said Li. "Although the new mandates will likely lower premium amounts
for many policyholders, any changes in rates—whether positive or
negative—should be communicated to customers well in advance to avoid
any confusion or surprise. Additionally, communicating with
policyholders through phone calls or personalized e-mails is more
satisfying than the traditional method of sending information by mail."
Grey Power ranks highest in customer satisfaction among private
full-coverage auto insurers with a score of 756 and performs
particularly well in three of the five factors: price/premium, billing
and claims. RBC Insurance (744) and Johnson Insurance (738) follow in
the rankings. RBC Insurance performs particularly well in the product
Within the Quebec private auto insurers segment, Intact Insurance ranks
highest with a score of 842, improving by 97 index points from 2009.
Intact Insurance performs particularly well in three of five factors:
customer service, price/premium and claims. Promutuel (839) and The
Personal (835) follow in the rankings.
The study also finds that providing high levels of customer satisfaction
has a particular strong positive effect on customer recommendation
rates. Customers who indicate they are "delighted" (providing a rating
of 10 on a 10-point scale) with their auto insurance provider gave five
positive recommendations during the past year, on average. In contrast,
customers who are dissatisfied (ratings of four or lower) gave
approximately eight negative recommendations, on average.
The study findings also include the following key trends:
Although overall satisfaction has improved from 2009 among all
customer age groups, it has improved least among customers between the
ages of 35 and 44. While policyholders between the ages of 35 and 44
are the least satisfied, on average, policyholders who are 65 years of
age and older have the highest levels of satisfaction.
Policyholders between the ages of 18 and 34 are considerably more
likely to rely on recommendations from family and friends and online
searches when seeking information about insurance companies, compared
with any other age group.
The 2010 Canadian Auto Insurance Customer Satisfaction Study is based on
responses from 9,551 auto insurance policyholders. The study was fielded
in July 2010.
About J.D. Power and Associates
Headquartered in Westlake
Village, Calif., J.D. Power and Associates is a global marketing
information services company operating in key business sectors including
market research, forecasting, performance improvement, Web intelligence
and customer satisfaction. The company's quality and satisfaction
measurements are based on responses from millions of consumers annually.
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 (NYSE: MHP) is a global information and education
company providing knowledge, insights and analysis in the financial,
education and business information sectors through leading brands
including Standard & Poor's, McGraw-Hill Education, Platts, and J.D.
Power and Associates. The Corporation has more than 280 offices in 40
countries. Sales in 2009 were $5.95 billion. Additional information is
available at http://www.mcgraw-hill.com/.
No advertising or other promotional use can be made of the information
in this release without the express prior written consent of J.D. Power
and Associates. www.jdpower.com/corporate
NOTE: Two charts available upon request.
1 This segment includes private auto insurance providers only
and excludes mandated government insurers and study data from British
Columbia, Saskatchewan, Manitoba and Quebec.
2 No rankings are issued for the government-run providers
segment due to an insufficient number of award-eligible brands.
SOURCE J.D. Power and Associates
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