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Insurance Claims and Servicing - Canada - January 2017

Published By :

Mintel

Published Date : Jan 2017

Category :

Banking

No. of Pages : N/A

Increasing the adoption of usage-based insurance will mean convincing customers to trade in their privacy to obtain benefits such as better rates and a smoother driving experience.

Table of Content

Overview
Regional classifications
Income
Definitions

Executive Summary
The issues
Four in five Canadians have auto and around three in five have home insurance
Figure 1: Ownership of insurance products, November 2016
About one in four are willing to use driving tracking devices
Figure 2: General attitudes about auto insurance, November 2016
Satisfaction with auto claims is high but there is some dissatisfaction about real-time status checks
Figure 3: Satisfaction with auto insurance claim, November 2016
Satisfaction with home claims is high but there is some concern about impact of claim on renewal price
Figure 4: Satisfaction with homeowners insurance claim experience, November 2016
The opportunities
Increasing ownership among younger consumers
Smart homes and home insurance
Increasing adoption rates of usage-based insurance
Practical measures to enhance the auto claims experience
What it means

Market Factors
The evolving world of telematics
Robo-insurance advisors
Smart homes and insurance
Sharing economy and insurance

Key Players – What You Need to Know
Economical insurance activates multi-channel distribution with launch of direct channel
Desjardins insurance engages key cultural communities
Belairdirect launches simplified home insurance quote tool
Facebook says no to insurance quoting effort
Insurer launches UK’s ‘first driverless car policy’
Apps facilitate mobile claims reporting
Slice offers on-demand insurance for home sharing

Industry Developments
Economical Insurance activates multi-channel distribution with launch of direct channel
Intact Financial Corporation makes strategic investment in Metromile
Ontario approves insurance plan aimed at Uber
Aviva Canada announces the acquisition of RBC General Insurance Company
Belairdirect launches simplified home insurance quote tool
Facebook says no to insurance quoting effort
Ford, Toyota form telematics alliance with other automakers, suppliers

Innovations
Adrian Flux launches the world’s first driverless car insurance
Robo-insurance advisors
Ageas and Trov launch on-demand insurance apps
Lemonade and other companies bring the sharing economy to insurance
Risk unit based policies
Sure’s on-demand ‘micro-duration’ insurance policies
Slice offers on-demand insurance for home sharing
Assisto and Claim Di facilitate mobile claims reporting

Marketing Campaigns
Sonnet Insurance launches with an optimistic campaign
Desjardins Insurance engages key cultural communities
TD’s insurance campaign around customer experience
Select campaigns from Mintel Comperemedia
TD highlights its convenient one-stop auto claims solution
Figure 5: TD insurance auto insurance claims print advertisement, September 2016
Belairdirect positions itself as a straightforward, trustworthy company
Figure 6: Belairdirect direct mail campaign, December 2015
Desjardins promotes switching savings
Figure 7: Desjardins direct mail switching advertisement, march 2016

The Consumer – What You Need to Know
Four in five Canadians have auto and around three in five have home insurance
Around a third of auto insurance and a fifth of home insurance consumers have submitted a claim in the past seven years
Intact and TD are the leader in a competitive market
About one in four are willing to use driving tracking devices
Satisfaction with insurance claims experience is high

Insurance Ownership
Four in five Canadians have auto and around three in five have home insurance
Figure 8: Ownership of insurance products, November 2016
Over-55s have the highest auto and home insurance ownership rates
Figure 9: Auto and home insurance ownership, by age group, November 2016
LGBTs over-index on renters insurance
Figure 10: Ownership of auto and home insurance, Overall population vs. LGBTs, November 2016
Increasing auto and home insurance ownership among younger consumers
Renters insurance and Millennials

Auto and Home Insurance Claims Incidence
Around a third of auto insurance owners have submitted a claim in the past seven years
Figure 11: Auto claim submission incidence, November 2016
Young men more likely and older women less likely to have submitted an auto insurance claim
Figure 12: Auto claim submission incidence, by gender and age, November 2016
About one in five have submitted a home insurance claim in the past seven years
Figure 13: Incidence of homeowners insurance claim submission, November 2016
Young men more likely to submit a home insurance claim
Figure 14: Incidence of homeowners insurance claim submission, by gender and age, November 2016

Companies Used for Auto and Home Insurance Claims
Intact and TD are the leaders in a competitive market
Figure 15: Companies used for auto insurance claims, November 2016
Among 18-34s, TD is the leading company
Figure 16: Companies (select) used for auto insurance claims, by age, November 2016
Intact and TD/Meloche Monnex are also the leaders in home insurance
Figure 17: Companies used for homeowners insurance claims, November 2016
TD & Wawanesa stronger among younger, Allstate among older consumers
Figure 18: Companies (select) used for homeowners insurance claims, November 2016

Auto Claims Attitudes and Experience
About one in four are willing to use driving tracking devices
Figure 19: General attitudes about auto insurance, November 2016
Increasing adoption rates of usage-based insurance
Most consumers are aware of their auto insurance coverage details
Less than half of claim filers would recommend their auto insurer to others
Figure 20: Attitudes related to satisfaction with auto claims, November 2016
Around three in five claimants believe their claim was handled fairly
One in ten read online reviews about auto claims experiences
Figure 21: Attitudes related to auto insurance and mobile phones, November 2016

Homeowners Insurance Attitudes and Experience
Half of consumers agree their home insurance claim was handled fairly
Figure 22: Attitudes related to satisfaction with homeowners insurance, November 2016
Around one in eight consumers read online reviews about home insurance claims
Figure 23: Attitudes related to channels used for home insurance claims, November 2016
Younger consumers and digital channels
Smart homes and home insurance

Satisfaction with Auto and Home Claims
Satisfaction with auto claims is high but there is some dissatisfaction about real-time status checks
Figure 24: Satisfaction with auto insurance claim, November 2016
Over-45s are more satisfied with their claims experience
Figure 25: Satisfaction with recent auto claims experience (any satisfied), 18-44s vs over-45s, November 2016
Practical measures to enhance the auto claims experience
Satisfaction with home claims is high but there is some concern about impact of claim on renewal price
Figure 26: Satisfaction with homeowners insurance claim experience, November 2016
Key driver analysis
Methodology
Explanation of claim adjustment and empathy of staff are attributes that auto insurers need to prioritize in order to drive satisfaction
Figure 27: Key drivers of satisfaction with auto insurance claims and servicing, November 2016
Explanation of claims process and ability to check real-time claim status are attributes that home insurers need to prioritize in order to drive satisfaction
Figure 28: Key drivers of satisfaction with homeowners insurance claims and servicing, November 2016

Appendix – Data Sources and Abbreviations
Data sources
Consumer survey data
Abbreviations and terms

Appendix – Key Driver Analysis
Interpretation of results
Figure 29: Level of satisfaction with auto insurance claims and servicing – Key driver output, November 2016
Figure 30: Level of satisfaction with homeowners insurance claims and servicing – Key driver output, November 2016

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