J.D. Power Reports: One in 10 Canadian Customers SwitchAuto Insurance Carriers

784

www.mhfi.com

Regional Rankings

TD Insurance

Belairdirect

5

778

748

National Bank Insurance

801

The study, now in its seventh year, measures insurance customer experiences with their primaryauto insurer in Canada. Customer satisfaction is measured across five factors (in order ofimportance): interaction; price; policy offerings; billing and payment; and claims. Insurers areranked in three provinces: Ontario, Alberta and Quebec.

Alberta Motor Association

Dominion of Canada

745

2

719

TORONTO--(BUSINESS WIRE)--One in five auto insurance customers in Canada have shopped for anew insurer in the past 12 months and 9 per cent have switched, according to the J.D. Power 2014Canadian Auto Insurance Satisfaction StudySM released today.

837

3

J.D. Power.com Power Circle RatingsTM

3

3

L'Union Canadienne

749

4

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798

4

Belairdirect

746

3

Johnson Insurance

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3

Wawanesa

Co-operators

KEY FINDINGS

770

2

3

782

747

Industrial Alliance

3

3

Â

740

http://www.jdpower.com/about-us/press-release-info

2

Price, historically a key differentiator among insurance companies, is having less impact on overallcustomer satisfaction. Price satisfaction is highest in Quebec, primarily because the governmentinsures against injuries to people, thus bodily injury coverage is not required for vehicle owners,keeping premiums lower than in other provinces. In Ontario, auto insurance is regulated by theFinancial Services Commission of Ontario, which in 2013 implemented its Auto Insurance Cost andRate Reduction Strategy, contributing to an increase in price satisfaction of 6 points (on a 1,000-point scale).

4

3

3

4 - Better than most

Quebec Average

Ontario

Ultimately, each insurance company conquests less than an average of 1 per cent of customersshopping for a new insurance policy. Brand awareness limits most carriers' ability to attractshoppers, as they typically limit their search to an average of only 1.5 quotes.

3 - About average

763

4

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Customer satisfaction in Ontario averages 749, down 7 points from 2013. Belairdirect (784) rankshighest in Ontario, followed by CAA Insurance Company (778) and State Farm (773).

The 2014 Canadian Auto Insurance Satisfaction Study is based on responses from nearly 9,910 autoinsurance policyholders. The study was fielded in January and February 2014.

RSA

2

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5

Â

4

753

3

Intact Insurance

CAA Insurance Company

Overall Customer Satisfaction Index Scores

794

About J.D. Power and Advertising/Promotional Rules

J.D. Power.com Power Circle RatingsTM

793

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Allstate

4

752

773

747

Overall Customer Satisfaction Index Scores

(Based on a 1,000-point scale)

805

Grey Power

734

778

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RBC Insurance

Study Rankings

Aviva Insurance

Alberta

729

777

3

About McGraw Hill Financial

800

Â

Intact Insurance

725

3

Â

Note: Included in the study but not ranked due to sample size are Allstate, Canadian Direct,Dominion of Canada, Economical Insurance, RBC Insurance and State Farm.

Wawanesa

Co-operators

La Capitale

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Power Circle Ratings Legend

(Based on a 1,000-point scale)

Customer satisfaction in Quebec improves 2 points in 2014 to 804. In Quebec, The Personal rankshighest for a second consecutive year, with a score of 837. La Capitale ranks second (821) andDesjardins General Insurance (805) third.

2

3

Economical Insurance

Â

749

767

Desjardins General Insurance

Gore Mutual

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Note: Included in the study but not ranked due to sample size are Primmum and Zenith Insurance.

Â

3

734

State Farm

821

Overall Customer Satisfaction Index Scores

For Consumers

Â

Alberta Average

Â

3

Intact Insurance

TD Insurance

Â

Quebec

750

"Even the largest national insurance companies have limited awareness," said Jeremy Bowler, seniordirector of the insurance practice at J.D. Power. "Some of the big carriers may be well-known in onecity or province, but have little or no awareness outside of that market. To grow their business, theyneed to build brand awareness, which traditionally requires significant advertising investment."

3

For Consumers

The Personal

740

Across the three provinces in the study, overall customer satisfaction drops to 758 in 2014 from 766in 2013. Declines in satisfaction with claims (-29 points), interaction (-13) and billing and payment (-12) account for the majority of the year-over-year drop. Price is the only factor in which satisfactionimproves.

5

3

(Based on a 1,000-point scale)

The Personal

3

Johnson Insurance

804

The average growth rate among all insurers included in the study is 4 per cent. The largest growthrate is 24 per cent, while the largest attrition rate is 11 per cent.

Aviva Insurance

Ontario Average

736

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2

Note: Included in the study but not ranked due to sample size are Allstate, Promutuel, SSQ Generaland Wawanesa.

For Consumers

3

TD Insurance

2

J.D. Power.com Power Circle RatingsTM

Customer satisfaction in Alberta averages 744, down 3 points from 2013. Co-operators ranks highestin customer satisfaction in Alberta with a score of 782. Alberta Motor Association ranks second(770), followed by Johnson Insurance (754).

Desjardins General Insurance

Once an insurer wins a new customer, every touch point they have with that customer is crucial andcan be the difference between a loyal customer and a defector. Study findings show that the threemost critical touch points are the annual or semi-annual renewal notice; when a customer contactstheir insurer for non-claims-related reasons (62 per cent of customers have contacted their insurereither directly or through an agent in the past 12 months regarding a non-claim-related issue); andwhen a customer files a claim (12 per cent of customers filed an auto claim in the past year).

5

Â

744

Aviva Insurance

3

754

2 - The rest

5 - Among the best