Brokers’ relationship skills may have played a part in two broker companies finishing among the Top 3 in an inaugural consumer survey of auto insurance claims satisfaction in Canada.
J.D. Power’s 2013 Canadian Auto Claims Satisfaction Study measures consumer satisfaction with the claims experience for auto physical damage loss, based on responses from 2,458 auto insurance customers in Canada. It ranks customers’ satisfaction with eight insurers on a scale of 1,000 points.
Intact Insurance and
Aviva Canada, both of which sell their products through the broker channel, finished second and third in the rankings. RBC Insurance finished first with a score of 815 points.
The study found claims settlement is the most important factor of overall satisfaction among both total loss and repair claimants. Next is the first notice of loss, which is the first phone call a customer makes to their insurance provider after they have been in a vehicle accident or experienced damage to their car.
The consumer’s initial call to a broker or agent, which averages 18 minutes, sets the tone for the rest of the claims process, according to the survey.
This is where a broker can shine, said Lubo Li, senior director in the Toronto office of J.D. Power and Associates. “A key element in the claimant’s satisfaction is communication,” he said. “Customers expect to find a smooth line of communication with a company.
"They want to be fully informed about the process – what’s covered, what’s not covered, and how long it will take. Also, they will want to hear updates from the firms throughout the entire process.
“When that is the case, it is important that the agent or broker, who is working on behalf of the clients, is engaged and proactive.”
The broker’s role is different than that of claims handlers at insurance companies, said Anne Cooper of Ostic Insurance Brokers Limited.
Some of the larger companies accommodate a large volume of claims by establishing automated and/or impersonal claims handling processes.
“Companies have so many claims that the client can get lost,” she said. “Whereas a broker who works on behalf of a client wants to make sure their client is happy. We have the empathy. We can put ourselves in our customers’ shoes.”
Li noted the significance of the size of the broker companies appearing in the Top 3 list.
“When you look at the rankings, it seems to follow the size of these companies,” he said. “They have significant financial strength. They are able to provide the kind of claims that customers expect, because at the end of the day the settlement determines the customer’s experience.”
Here is how the eight eligible insurers in the survey rated (top score = 1,000):
1) RBC Insurance: 815
2) Intact Insurance: 806
3) Aviva Insurance: 803
4) State Farm: 802
5) TD Insurance: 796
Industry Average: 787
6) Johnson Insurance: 783
7) Co-operators: 782
8) Wawanesa: 761
