Industry Research : Canadian Customers Least Satisfied with Home Insurance Service Experience
Satisfaction among Gen Y customers who are becoming first-time home owners and homeowners’ insurance buyers in Canada is declining at a faster rate than in any other generational group, suggests the J.D. Power 2015 Canadian Home Insurance Study, released on Thursday.
Only 55% of Gen Y customers "completely" understand their billing statement, study says
The annual study from global market research company J.D. Power examines customer satisfaction with their homeowners insurance company by examining five factors (in order of importance): non-claim interaction (local agent or broker, call centre representative and website); policy offerings; price; billing and payment; and claims. The study is based on responses from 7,466 home insurance customers; satisfaction is calculated on a 1,000-point scale.
Gen Y customers (defined by J.D. Power as those born between 1977 and 1994) are the least satisfied among the generational groups with their home insurance service experience, the survey found, with satisfaction declining by 12 points to 745 from 757 in 2014. This compares to a 10-point decline among Boomers (the largest generation group, born between 1946-1964) and only a one-point decline among Gen X customers (1965-1976).
"The erosion in satisfaction levels among Gen Y customers is largely driven by a significant 14-point decline in the most important factor, non-claim interaction," J.D. Power said in a statement. Satisfaction with homeowners’ insurance among Gen Y customers is lower in non-claim interaction (768) and claims (749), compared with satisfaction among Boomers (815 and 812, respectively).
"Satisfying Gen Y customers with the service interaction experience is critical for insurers to remain competitive in the marketplace," suggested Valerie Monet, director of the insurance practice at J.D. Power, in the statement. "Insurers need to educate customers regarding the issues they most frequently contact their insurer about: policy coverage options; bill payment options; and what to do and expect in the event they have to file a claim."
Understanding the billing statement is one aspect of the interaction experience that Gen Y customers are struggling with more than other generations, the study found, with only 55% saying they "completely" understand their billing statement, compared with the industry average of 66%. Notably, Gen Y experiences more billing errors than the other generations (15% vs. less than 10% for each of the other groups), leading them to turn to their agent or a call centre representative for help.
Posted by Veronica Silva Cusi, news correspondent
Today's Tip of the Day - The Name Game
More Editorial From J.D. Power and Associates
Published: Monday, May 11, 2015