Canadian Insurers Make Big Strides on Claims: J.D. Power

Not long after reporting that American consumers' satisfaction with auto insurers is at a record high, J.D. Power & Associates research released today finds that Canadian auto carriers are experiencing a similar bump.

Overall customer satisfaction with the auto claims experience in Canada averages 798 on J.D. Power's 1,000-point scale, an 11-point increase from 2013. Further, customers who recently experienced a claim rate their insurer 40 points higher than those who haven't.

Desjardins Insurance was the highest-rated company J.D. Power measured, with a score of 835. It was followed by Intact (829) and The Co-operators (819). Fourth was State Farm, which sold its Canadian operations to Desjardins earlier this year.

In order to create a top-of-the-line claims experience, J.D. Power says, insurers must establish good vendor relationships. Faster claim settlement times and vehicle return times are big contributors to higher satisfaction.

“Since, in large part, the customer experience rests in the hands of a number of third parties—such as the repair shop, tow operator and rental car company—this presents a challenge for insurers regarding satisfaction,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power, in a statement. “Often customers perceive the quality of the service they receive from the fulfillment partners also reflects on the insurer, and as such, blame the insurer if service fails to meet their expectations.”

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio