The Financial Services Regulatory Authority of Ontario (FSRA) has published its 2022 Consumer Research Study, a survey of 4,000 adults which shows, among other things, that overall satisfaction with the financial services sector is high among Ontarians, but that insurance providers are generally less well trusted than other regulated entities in the province.
The research probes consumer attitudes, how consumers are engaging with financial services and takes an in-depth look at vulnerability. They say this is being done to help identify key opportunities to respond to the needs of vulnerable consumers.
“By establishing a quantitative baseline, the study will enable FSRA to, over time, monitor the impact of market changes, industry responses and regulatory efforts on consumers, members and beneficiaries,” they write.
Banks and pension plans had the highest levels of trust among survey respondents, with 44 per cent and 39 per cent saying they trust banks and pension plans respectively, either a lot or completely. Insurance agents, brokers and insurance companies earned the same vote from only 21 per cent of respondents – lower than both credit card companies and credit unions. (Comparatively speaking, 30 per cent of those surveyed say they trusted their credit card companies a lot or completely.)
A great deal of FSRA’s research then focuses on vulnerability. Areas discussed include markers of vulnerability, information about a vulnerable consumer’s attitudes, purchasing habits and engagement preferences. (For less vulnerable consumers, a family or friend referral is the most common means of finding service providers. Vulnerable clients, meanwhile, were more likely to do the same using advertising and online search.) It additionally found that the vulnerable are generally much less trusting and less satisfied with the services they receive. The paper also discusses the barriers to access those vulnerable consumers experience.
In looking at the broader set of survey responses, FSRA also learned that 10 per cent of all respondents said they’d been offered a financial product or service at a price or with terms and conditions that were unreasonable – the top six unreasonable products on offer being either credit or insurance products. More, just 57 per cent of customers surveyed report being at least somewhat satisfied with the service when purchasing life insurance; 71 per cent report making their purchase through an agent.
The study further found that awareness about the regulator itself is low, with just five per cent of auto insurance consumers and four per cent of home, health and life insurance being able to identify FSRA. Regarding complaints, they say the research suggests that few who experience issues actually follow up with one.
Among those who had an issue but did not complain, a significant number report saying there would be no point – and the number of those saying this in insurance is notable. Of those who’d experienced a problem but did not make a formal complaint about the issue, 45 per cent of health and life consumers said there would be no point, 56 per cent of home insurance consumers said the same, as did 50 per cent of those who had complaints about the auto insurance sector. Comparatively speaking, only 29 per cent said the same about mortgage brokers, 27 per cent said the same about pension-related problems and 26 per cent said the same about credit unions.
