- Canadian policyholders are unlikely to refer a friend to their insurer, according to a widely used market research customer satisfaction indicator.
- Fewer than 30% of Canadians said they are completely satisfied with their insurance provider’s COVID-19 response.
- Dissatisfaction was particularly high among those who have held their policies for a long time and feel they have lost touch with their providers.
Most Canadians would not recommend their insurance provider, a new study by market research firm Ipsos has found.
Canada’s insurance market scored a –8 net promoters score (NPS). NPS is a market research metric that rates the likelihood a survey respondent would recommend a company to a friend or colleague. NPS can range from –100 to 100.
For comparison, the banking industry in Canada sits at an NPS score of 12.
A negative NPS means there are more people unhappy than happy. It also means that there are obstacles to overcome to minimize the negative outlook clients have about the industry.
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Few Canadians pleased with their insurer’s COVID response
Less than 30% of Canadians said they are completely satisfied with their insurance provider’s COVID-19 response. A similar number (one in three) are happy with the quality of customer service they generally receive.
The study also found that personalized communication is important but lacking. Fewer than 25% of survey respondents are satisfied on this front.
Dissatisfaction was particularly high among those who have held their policies for a long time and feel they have lost touch with their providers.
Ipsos said that compared to other sectors, insurance has always been characterized by low engagement and the pandemic reinforced this trend with fewer people driving or travelling.
It said the pandemic has clarified the need for all industries to do better and focus on the customer and not the product. For insurance companies, in particular, the researchers said the day-to-day claims process must improve along with wait times.
The Ipsos CSI Insurance Study (CSI standing for Customer Satisfaction Index) is based on an Ipsos poll conducted last year. A total sample of 13,000 Canadians who own at least one type of insurance policy aged 18 and over was interviewed online.
Who can you turn towards to find a new provider?
Not everyone is unhappy with their insurer. The study says some insurers (although they’re not named) rank well amongst their policyholders. These are companies the researchers say have “found the right balance between satisfying functional needs such as premiums, variety, accessibility while creating an emotional bond with their clients beyond overall satisfaction – they’re building trust, reliability and finding ways to innovate to simplify customer engagement.”
If you’re unsatisfied with your insurer, there’s no need to stick it out. With InsuranceHotline.com, it takes a few short minutes to compare quotes from our network of over 30 insurance providers. Find a new insurance provider today, one that you would be happy to refer to your friends and family.
With files from Thompson’s World Insurance News. Used with permission.