According to J.D. Power & Associates’ 2013 Canadian Auto Insurance Satisfaction Study, the adoption of technology is having a significant impact on the way customers interact with their auto insurance providers. In 2013, the percentage of customers using non-traditional channels, such as a provider’s website, has increased by as much as seven percentage points from 2012, now accounting for as much as one-third of all customer interactions, depending on the particular region.
Among customers who contact their insurance company, nearly one-half (49 per cent) use multiple channels to contact their provider.
“An increasing number of consumers are going to the web for their first point of contact to gather information,” remarked Jeremy Bowler, senior director of the insurance practice at J.D. Power & Associates. “Auto insurers in Canada are aware of this major shift and need to continue to enhance their digital presence.”
Bowler urges auto insurers to enhance their digital capabilities and promote these options, not only so that consumers can research and buy insurance when and where they want, but also so that customers can do the same when self-servicing a policy.
The study, now in its sixth year, measures insurance customer experiences with their primary auto insurer in Canada. Customer satisfaction is measured across five factors (in order of importance): interaction; price; policy offerings; billing and payment; and claims. Insurers are ranked in three regions: Ontario/Atlantic; Western (British Columbia; Alberta; Saskatchewan; and Manitoba); and Quebec.
Auto insurance customers in all three regions are more price sensitive in 2013 than they were in 2012, based on the 2013 study results.
“Although overall satisfaction has increased in the Ontario/Atlantic region, the uptick in insurer-initiated premium increases in the Western and Quebec regions has taken a toll on overall satisfaction,” said Lubo Li, senior director of the services and emerging industries division at J.D. Power & Associates.
Based on the findings in the 2013 report, in each region, product offerings need to be competitive within the marketplace, which is where bundling can be very effective. “We see from analysis and our research that continued investment in websites should be a focal point for insurers since it offers an opportunity to provide convenience and efficiency to customers, which can lift satisfaction and hence loyalty,” Bowler said.
The 2013 study also found that Canada’s auto insurer websites have lower satisfaction, in comparison to any other interaction channel — such as agents or call centre representatives.
“Insurers that are able to meet the current level of customer expectations related to website usability may be able to trim costs with their call centres — through a reduction in call volumes — and provide efficient service, which can help them realize a return on investment,” remarked Bowler.
