BCAA, The Co-operators and The Personal All Rank Highest In Home Insurance Satisfaction in Their Respective Region
Toronto, ON (June 9, 2015) – As Gen Y customers(1) are increasingly becoming first-time home owners and homeowners insurance buyers in Canada, not only are they more critical of their service interactions with their insurers, satisfaction among these customers is also declining at a faster rate than in any other generational group, according to the J.D. Power 2015 Canadian Home Insurance StudySM.
The annual study examines customer satisfaction with their homeowners insurance company by examining five factors (in order of importance): non-claim interaction; policy offerings; price; billing and payment; and claims. The non-claim interaction factor includes three subfactors: local agent or broker; call centre representative; and website. Satisfaction is calculated on a 1,000-point scale.
Gen Y customers are the least satisfied among the generational groups with their home insurance service experience. Satisfaction among Gen Y has declined significantly, by 12 points to 745 from 757 in 2014, compared with a 10-point decline among Boomers—the largest generational group—and a 1-point decline among Gen X customers. The erosion in satisfaction levels among Gen Y customers is largely driven by a significant 14-point decline in the most important factor, non-claim interaction.
“Satisfying Gen Y customers with the service interaction experience is critical for insurers to remain competitive in the marketplace,” said Valerie Monet, director of the insurance practice at J.D. Power. “Insurers need to educate customers regarding the issues they most frequently contact their insurer about: policy coverage options; bill payment options; and what to do and expect in the event they have to file a claim.”
Understanding the billing statement is one aspect of the interaction experience that Gen Y customers are struggling with more than other generations, with only 55 per cent saying they “completely” understand their billing statement, compared with the industry average of 66 per cent. Notably Gen Y experiences more billing errors than the other generations (15 per cent vs. less than 10 per cent for each of the other groups), leading them to turn to their agent or a call centre representative for help.
Satisfaction Rankings
The Co-operators (789) ranks highest in the Atlantic/Ontario region, followed by State Farm (776) and RBC Insurance (773).
The Personal (814) ranks highest in the Quebec region, followed by Intact Insurance (788) and La Capitale (782).
BCAA ranks highest in the Western region for a fourth consecutive year, with a score of 815. Following BCAA in the rankings are Portage Mutual Insurance (774) and Intact Insurance (763).
Key Findings
- Overall satisfaction declines by 11 points nationally to 759 from 770 in 2014. Regionally, satisfaction declines to 745 from 752 in the Western region; declines to 759 from 771 in the Atlantic/Ontario region; and declines to 777 from 794 in the Quebec region.
- Overall, the decrease in satisfaction in 2015 is driven by a significant 14-point decline in the non-claim interaction factor.
- Non-claim interaction satisfaction has declined significantly due to challenges with the call centre. In this regard, 41 per cent of customers indicate having to wait one minute or longer to speak with a representative, and 34 per cent of customers indicate that their issue was not resolved on the same day.
- Satisfaction with homeowners insurance among Gen Y customers is lower in non-claim interaction (768) and claims (749), compared with satisfaction among Boomers (815 and 812, respectively).
The 2015 Canadian Home Insurance Study is based on responses from 7,466 home insurance customers. The survey data was collected from March 2015 through April 2015.
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Overall Customer Satisfaction Index Rankings (Based on a 1,000-point scale) |
J.D. Power.com Power Circle RatingsTM For Consumers |
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| Atlantic/Ontario Region | |||||||||||
| The Co-operators | 789 | 5 | |||||||||
| State Farm | 776 | 4 | |||||||||
| RBC Insurance | 773 | 4 | |||||||||
| The Personal | 771 | 4 | |||||||||
| RSA Insurance | 766 | 4 | |||||||||
| Allstate | 765 | 4 | |||||||||
| Gore Mutual | 759 | 3 | |||||||||
| Atlantic/Ontario Region Average | 759 | 3 | |||||||||
| Intact Insurance | 758 | 3 | |||||||||
| Aviva Insurance | 757 | 3 | |||||||||
| Travelers | 755 | 3 | |||||||||
| Belairdirect | 750 | 3 | |||||||||
| Johnson Insurance | 745 | 2 | |||||||||
| Economical Insurance | 742 | 2 | |||||||||
| Wawanesa | 742 | 2 | |||||||||
| TD Insurance | 737 | 2 | |||||||||
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Note: Included in the study but not ranked due to sample size are CAA Insurance, Chubb Insurance, Desjardins General Insurance, and Portage Mutual Insurance. |
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| Quebec Region | |||||||||||
| The Personal | 814 | 5 | |||||||||
| Intact Insurance | 788 | 4 | |||||||||
| La Capitale | 782 | 3 | |||||||||
| Belairdirect | 777 | 3 | |||||||||
| Quebec Region Average | 777 | 3 | |||||||||
| SSQ General | 774 | 3 | |||||||||
| Desjardins General Insurance | 773 | 3 | |||||||||
| Industrial Alliance | 772 | 3 | |||||||||
| Aviva Insurance | 768 | 3 | |||||||||
| TD Insurance | 745 | 2 | |||||||||
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Note: Included in the study but not ranked due to sample size are Allstate and RSA Insurance. |
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| Western Region | |||||||||||
| BCAA | 815 | 5 | |||||||||
| Portage Mutual Insurance | 774 | 4 | |||||||||
| Intact Insurance | 763 | 4 | |||||||||
| Wawanesa | 759 | 4 | |||||||||
| The Co-operators | 749 | 3 | |||||||||
| Western Region Average | 745 | 3 | |||||||||
| Economical Insurance | 738 | 3 | |||||||||
| SGI Canada | 738 | 3 | |||||||||
| Peace Hills General Insurance | 736 | 3 | |||||||||
| Alberta Motor Association | 732 | 3 | |||||||||
| Travelers | 724 | 2 | |||||||||
| TD Insurance | 719 | 2 | |||||||||
| Aviva Insurance | 713 | 2 | |||||||||
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Note: Included in the study but not ranked due to sample size are Allstate, Canadian Direct, CNS Insurance, Johnson Insurance, RSA Insurance, and RBC Insurance. |
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Power Circle Ratings Legend
- 5 – Among the best
- 4 – Better than most
- 3 – About average
- 2 – The rest
1. J.D. Power defines the generational groups as follows:
- Pre-Boomers (born before 1946);
- Boomers (1946-1964);
- Gen X (1965-1976);
- Gen Y (1977-1994);
- Gen Z (1995-2004).
About J.D. Power
Since 1968, organizations around the world have relied on J.D. Power as a trusted advisor for deep expertise in the industries we serve, advanced research science to drive insights, and a proven success record for driving results.
By analyzing the many aspects of the customer experience, J.D. Power can identify the multiple drivers of that experience, measure and understand the impact of those drivers, and help drive business results by monitoring and improving performance.
