Canadians unhappy with auto insurance providers
Canadians are less than happy with the auto insurance on offer to them, according to a new study.
The research, conducted by market researcher J.D. Power, revealed that the satisfaction rate for customers across the nation has declined over the course of the last year.
In fact, since 2017 overall customer satisfaction has dropped six points from 784 a year ago to 778, based on a satisfaction rating out of 1,000. In Ontario alone, customer satisfaction has dropped 8 points since 2017.
According to the researcher, Canadian consumers are expecting a lot more from their insurer. Drivers are expecting products and services that are “relevant, personalized, easy and timely.” It’s thought that this is, in part, the result of customer experience with other digital service providers outside of the insurance industry.
“Auto insurance customers’ expectations are increasingly being shaped by experiences outside the industry,” explained J.D. Power insurance practice director Tom Super. “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 centre, navigating the company’s website or visiting a local agent’s office.”
When it comes to communicating with their insurer, at least half of customers surveyed said that they prefer interaction using digital channels. Not surprisingly, this increased with younger-generation customers, however acceptance of digital communications are on the rise across all age groups.
Communication appears to be an important factor for Canadian drivers, who say they prefer to be kept in the know of changes to their policy-including premium increases. The satisfaction score among customers who were not notified properly about a premium increase is 70 points lower than those who were informed. Interestingly, lack of communication about a price decrease also resulted in unhappy customers-a decrease of 55 points. Customers who felt their insurer didn’t have an open discourse with them would be less likely
“Although overall customer satisfaction is down, there are opportunities for insurers to turn things around quickly and redeem the situation,” Super added. “Communicating more frequently and leveraging digital channels to better engage with customers will ensure fast, streamlined issue resolution. These elements have the power to turn things around fast.”