Only 42% of Ontarians Aware of Upcoming Auto Insurance Changes, Insurance Broker Association Study Finds
(Toronto, ON) Today, the Insurance Brokers Association of Ontario (IBAO) is releasing the results of its consumer survey on home and auto insurance, based on the feedback of 1,000 Ontarians. The survey, undertaken by Bond Brand Loyalty, brings to light consumer awareness levels on regulatory changes to auto insurance in Ontario, and reveals how Ontarians feel about insurance in general.
“The guidance insurance brokers provide consumers is a crucial component of the insurance purchasing process,” said IBAO CEO Jim Murphy. “The results of this survey prove consumers seek advice from community-minded brokers who are dedicated to consumer protection.”
AUTO INSURANCE REFORMS
In 2014, the provincial government passed the Fighting Fraud and Reducing Automobile Insurance Rates Act to fight fraud and abuse within the system. In 2015, changes to Ontario’s auto insurance product were outlined in the Ontario Budget. Measures were put in place not only to combat fraud, but to provide greater choice for consumers and help achieve the Ontario governments’ promised rate reduction targets. According to the IBAO 2016 Consumer Survey, only 42% of consumers in Ontario are aware of upcoming changes to auto insurance, effective June 1, 2016.
“Insurance brokers want consumers to know auto insurance is changing,” said Doug Heaman, IBAO President. “Consumers have choice. An insurance broker factors in lifestyle and health elements to ensure clients have the right coverage for themselves and for their family. Given these changes to the auto insurance product, it’s crucial consumers understand the significance and the cost to buy-back enhanced Accident Benefit limits.”
The survey reveals that rates and premiums are mentioned by approximately 50% of consumers as the most important feature of insurance. The second most important feature is the amount of coverage they have.
“While premiums are decreasing on average, rates come into effect June 1st, so it’s early to determine trends,” said Heaman. “Given that the amount of coverage is the second most important feature to consumers in Ontario, it’s important they understand the implications of this auto insurance reform and use their insurance broker for guidance. The cost to increase benefit levels is relatively inexpensive.”
The IBAO 2016 Consumer Survey reveals:
* Two-thirds of Ontarians want the advice of an insurance broker during the process of obtaining insurance (67% for home, 64% for auto).
* The top three attributes broker customers are satisfied with are: providing great customer service; matching policies to their needs; and helping with paperwork.
INSURANCE AS SECURITY
“The top emotion Ontarians feel about insurance is secure,” says Murphy. “We want this to continue throughout Ontario auto reform. We encourage all Ontarians to seek advice from an insurance broker in light of recent product reforms.”
For full survey results, click here.