Auto Insurance Satisfaction

Tom Super discusses the findings of J.D. Power’s 2018 Canadian Auto Insurance Satisfaction Study. (Runtime: 2 min, 58 sec)

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Tom Super, director of property and casualty insurance with J.D. Power, explains how rising consumer expectations are leading to lower levels of satisfaction with auto insurance.

Related Article: Auto insurers failing to meet consumer expectations: J.D. Power

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Text Transcript

Hi, I’m Tom Super, J.D. Power director of property and casualty insurance.

In our 2018 J.D. Power Canada auto insurance study, we found that overall customer satisfaction with insurance carriers was at a multi-year low, down another six points in 2018.

What emerged from our analysis is that consumers are setting a high bar for insurers. Satisfaction was down across our core factor areas. Price, interaction, billing payment, policy offerings and claims were down across the board.

Low levels of satisfaction were reported across channel interactions as well. Whether interacting with an agent, call centre or website, satisfaction was reported at lowest levels.

We also found that the driving factor behind this trend is rising consumer expectations. Consumers are being influenced by experiences outside of the auto insurance study, and they’ve come to expect a company’s products and services to be relevant, personalized, easy and timely.

Essentially, customers are saying to themselves, ‘If Amazon can make this simple and easy, why can’t my insurance provider?’

When we looked across the value chain, we found examples of where insurers are falling short. Sixty-three percent of consumers reported that they were unable to access their policy online. These are policies that they’ve purchased and now they can’t find the information for them, so of course they’re frustrated.

Another pain point that we found was that over 36% of customers reported that the statements that they receive from their auto insurers were easy to understand and helpful. So these are just a couple examples of where we find insurers coming up short.

So the question is, what can auto insurers do to reverse this trend and increase customer satisfaction?

What we found is that there are a number of actions that need to be top of mind for insurers, but, broadly speaking, carriers should ensure that their company interactions are simple and easy, and that they can be accessed at any place and at any time. Whether they need to review their coverages or make a payment, customers want to be able to interact with a brand when they want and how they want.

The best-performing insurers are able to offer what we call an omni-channel or multi-channel approach. This allows customers the ability to complete simple or routine tasks through online or self-service capabilities, while the more complex activities that require guidance and the support of an expert get the higher touch from an agent or other service.

So the message is clear: customers are looking for insurers that are easy, and in turn will reward those carriers through renewals. If they don’t, the primacy of the relationship with customers is at risk.

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