In the latest JD Power Customer Satisfaction research, Canadian auto insurers are getting better at the tough things (like price) and worse at the easier things (like customer service). The tough and easy terms above are our opinion, but the rest is real research. We like JD Power for its long-term focus on the customer relationship and brand marketing. The most recent (June, 2015) JD Power Report on Canadian auto insurances 1 reveals that:

  • Auto insurers have improved customer satisfaction with price over last year. This generally correlates to policy price stability or decline in all provinces except Quebec.
  • Customer satisfaction declined in four non-price categories, leading to a net decline in overall customer satisfaction. It’s a small total decline in the range of -1%, but it’s the third consecutive year in the wrong direction.
  • The biggest declines are in the areas of claims and non-claims interaction between customers and their insurance providers.

Digging deeper, here are key findings regarding the primary insurer’s call center:

  • Customer satisfaction with the insurer’s call centre is down more significantly than other declines due to first-contact resolution (FCR), courtesy and timeliness of issue resolution.
  • FCR under one minute declined five percentage points and same-day issue resolution declined six percentage points.

Here’s an interesting finding: Customer satisfaction increased with Usage-Based Insurance (UBI) programs. What’s interesting to us is that the improvement isn’t strictly due to UBI price benefits. We believe a large part of is the increased positive human interaction that UBI policies require between the customer and the provider.

So most of you have the toughest work done. If you are ready to move on to improving your claims and non-claims customer communications, we would love to share our ideas and our success stories. Contact Angeline Roach at (905) 448-2300 ext 7702,

Notes and references:

  1. 2015 Canadian Auto Insurance Satisfaction Study