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

Auto insurance hasn’t kept pace with consumers’ rising expectations, according to J.D. Power’s 2018 Canadian Auto Insurance Satisfaction Study.

Overall satisfaction levels, judged on a 1,000-point scale, dropped from 784 in 2017 to 778 in 2018. This was largely attributable to digital service providers influencing consumers’ expectations.

Related: Auto premiums increased in Alberta and Ontario in Q1 2018: LowestRates.ca

“Auto insurance customers’ expectations are increasingly being shaped by experiences outside the industry,” Tom Super, director of J.D. Power’s Insurance Practice, said in a news release. “Customers have come to expect interactions with a brand to be easy, provided in real time and relevant to them—whether speaking with a representative in a call center, navigating the company’s website or visiting a local agent’s office.”

Another issue was insurers not openly communicating premium increases—or decreases—to policyholders. Satisfaction among consumers who were not informed of premium increases declined by 70 points. Satisfaction declined by 55 points when consumers were not informed that their premiums had gone down.

J.D. Power surveyed 8,958 auto insurance policyholders in Alberta, Atlantic Canada, Ontario and Quebec.

In Alberta, The Co-operators ranked highest for customer satisfaction with a score of 787, although Alberta had the lowest overall level of customer satisfaction in the study at 754, down eight points from last year.

The Co-operators also had the highest level of customer satisfaction in Atlantic Canada with a score of 823. Overall satisfaction in the region increased from last year, up one point to 791.

The Personal ranked highest for customer satisfaction in Ontario at 790, one point better than The Co-operators’ 789. Customer satisfaction decreased overall to 775, down from 783 in 2017.

Quebec had the highest overall level of customer satisfaction with a score of 806, down seven points from 2017. The Personal had the highest customer satisfaction score in the province at 826.

Canadian Insurance Top Broker is now on Facebook (facebook.com/TopBrokerMag), as well as LinkedIn (linkedin.com/company/citopbroker) and Twitter (twitter.com/CITopBroker). Follow us for easy access to the top P&C news you need to know.

This story was originally published by Canadian Insurance Top Broker.