Despite a significant increase in weather-related insurance claims, Canadian customer satisfaction with insurances providers is improving, according to the J.D. Power 2014 Canadian Home Insurance Study.
The study examines customer satisfaction by examining five factors: interaction; price; policy offerings; billing and payment; and claims.
Year over year, the number of weather-related claims has increased by 32%; yet, overall customer satisfaction has improved nationally to 770 (on a 1,000-point scale) from 761 in 2013. Satisfaction improved by 17 points in the Atlantic/Ontario region to 771 and by 11 points in the Western region to 752, while satisfaction declined by 13 points in the Quebec region to 794.
Two out of five (41%) home insurance claims were for weather-related damage. Among customers who filed a weather-related claim, satisfaction with the claims process averages 790, up from 764 in 2013 when 31% of claims were for storm damage. Claims satisfaction among customers whose homes suffered non-weather-related water damage—the second most common type of claim (21%)—averages 808.
While the national average claims satisfaction score is trending upward, regional patterns vary. The Western region has the largest portion of weather-related claims (45%) and, despite a 35-point improvement from 2013, the lowest claims satisfaction at 773.
The Atlantic/Ontario region has the greatest increase in weather-related damage—up 35% from 2013—while the average claims satisfaction score in the region has improved by 65 points to 817.
Non-weather-related water damage is nearly as common as weather-related damage in the Quebec region (26% vs. 32%, respectively), where overall claims satisfaction scores average 787, down by 4 points from 2013.
A larger proportion of customers in 2014 indicate their insurer fully covered everything they thought should be covered, compared with 2013 (87% vs. 82%, respectively), which significantly increases claims satisfaction by more than 200 points on a national level.
The Personal (807) ranks highest in the Atlantic/Ontario region. Allstate, Co-operators and State Farm rank second in a three-way tie at 791.
SSQ General (805) ranks highest in the Quebec region, closely followed by La Capitale (804) and The Personal (803).
BCAA ranks highest in the Western region for a third consecutive year, with a score of 819. Following BCAA in the rankings are Portage Mutual Insurance (774) and Wawanesa (770).