TORONTO--(BUSINESS WIRE)--One in five auto insurance customers in Canada have shopped for a new insu...

1. J.D. Power Reports: One in 10 Canadian Customers Switch
Auto Insurance Carriers
TORONTO--(BUSINESS WIRE)--One in five auto insurance customers in Canada have shopped for a
new insurer in the past 12 months and 9 per cent have switched, according to the J.D. Power 2014
Canadian Auto Insurance Satisfaction StudySM released today.
Ultimately, each insurance company conquests less than an average of 1 per cent of customers
shopping for a new insurance policy. Brand awareness limits most carriers' ability to attract
shoppers, as they typically limit their search to an average of only 1.5 quotes.
"Even the largest national insurance companies have limited awareness," said Jeremy Bowler, senior
director of the insurance practice at J.D. Power. "Some of the big carriers may be well-known in one
city or province, but have little or no awareness outside of that market. To grow their business, they
need to build brand awareness, which traditionally requires significant advertising investment."
Once an insurer wins a new customer, every touch point they have with that customer is crucial and
can be the difference between a loyal customer and a defector. Study findings show that the three
most critical touch points are the annual or semi-annual renewal notice; when a customer contacts
their insurer for non-claims-related reasons (62 per cent of customers have contacted their insurer
either directly or through an agent in the past 12 months regarding a non-claim-related issue); and
when a customer files a claim (12 per cent of customers filed an auto claim in the past year).
KEY FINDINGS
Price, historically a key differentiator among insurance companies, is having less impact on overall
customer satisfaction. Price satisfaction is highest in Quebec, primarily because the government
insures 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 the
Financial Services Commission of Ontario, which in 2013 implemented its Auto Insurance Cost and
Rate Reduction Strategy, contributing to an increase in price satisfaction of 6 points (on a 1,000-
point scale).
The average growth rate among all insurers included in the study is 4 per cent. The largest growth
rate is 24 per cent, while the largest attrition rate is 11 per cent.
Across the three provinces in the study, overall customer satisfaction drops to 758 in 2014 from 766
in 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 satisfaction
improves.
The study, now in its seventh 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 provinces: Ontario, Alberta and Quebec.
Regional Rankings

2. Customer satisfaction in Alberta averages 744, down 3 points from 2013. Co-operators ranks highest
in customer satisfaction in Alberta with a score of 782. Alberta Motor Association ranks second
(770), followed by Johnson Insurance (754).
Customer satisfaction in Ontario averages 749, down 7 points from 2013. Belairdirect (784) ranks
highest in Ontario, followed by CAA Insurance Company (778) and State Farm (773).
Customer satisfaction in Quebec improves 2 points in 2014 to 804. In Quebec, The Personal ranks
highest for a second consecutive year, with a score of 837. La Capitale ranks second (821) and
Desjardins General Insurance (805) third.
Study Rankings
Alberta
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Overall Customer Satisfaction Index Scores
(Based on a 1,000-point scale)
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J.D. Power.com Power Circle RatingsTM
For Consumers
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Co-operators
782
5
Alberta Motor Association
770
4
Johnson Insurance
754

3. 4
Aviva Insurance
745
3
Alberta Average
744
3
Intact Insurance
740
3
Wawanesa
734
2
TD Insurance
734
2
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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.
Power Circle Ratings Legend
5 - Among the best
4 - Better than most
3 - About average
2 - The rest
Ontario
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4. Â
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Overall Customer Satisfaction Index Scores
(Based on a 1,000-point scale)
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J.D. Power.com Power Circle RatingsTM
For Consumers
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Belairdirect
784
5
CAA Insurance Company
778
5
State Farm
773
4
Grey Power
767
4
Co-operators
763
4
Allstate
753

5. 3
Dominion of Canada
752
3
Johnson Insurance
750
3
Ontario Average
749
3
The Personal
749
3
Desjardins General Insurance
748
3
Intact Insurance
747
3
Gore Mutual
747
3
RBC Insurance
746
3
Economical Insurance

6. 740
3
TD Insurance
736
3
Aviva Insurance
729
2
Wawanesa
725
2
RSA
719
2
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Note: Included in the study but not ranked due to sample size are Primmum and Zenith Insurance.
Quebec
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Overall Customer Satisfaction Index Scores
(Based on a 1,000-point scale)
J.D. Power.com Power Circle RatingsTM
For Consumers

7. Â
The Personal
837
5
La Capitale
821
4
Desjardins General Insurance
805
3
Quebec Average
804
3
Intact Insurance
801
3
Industrial Alliance
800
3
Belairdirect
798
3
Aviva Insurance
794
3
L'Union Canadienne

8. 793
3
National Bank Insurance
778
2
TD Insurance
777
2
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Note: Included in the study but not ranked due to sample size are Allstate, Promutuel, SSQ General
and Wawanesa.
The 2014 Canadian Auto Insurance Satisfaction Study is based on responses from nearly 9,910 auto
insurance policyholders. The study was fielded in January and February 2014.
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