Phoenix, Ariz., May 1, 2003– CNA National received the first-ever trophy for “Highest Overall Dealer Satisfaction with Service Contract Providers” from J.D. Power and Associates today during the 2003 International Automotive Roundtable, held at the Ritz-Carlton in Phoenix, Ariz. Since 1986, the event has been a premier forum attended by senior-level executives representing manufacturers, suppliers, retailers and related industry services. Speakers at this year’s roundtable included Roger Penske, chairman of UnitedAuto Group and Penske Corporation; Fred Schwab, president and CEO of Porsche Cars North America; and Victor Doolan, president and CEO of Volvo Cars of North America.
The award is the result of the inaugural Dealer Service Contract Satisfaction StudySM recently released by J.D. Power and Associates, which shows that CNA National ranks higher than all other service contract providers, including the auto manufacturers.
A wholly owned subsidiary of CNA Financial, CNA National earned the top score of 844 on a 1,000-point scale. The industry average was 741, with independents averaging 791 while the factories lagged at 719. The results were based on 5,053 dealer responses.
“We have always been committed at CNA National to being the best administrator in the business,” says Joan Saunders, president and chief executive officer. “It is extremely gratifying to receive this recognition from a company as well respected and prestigious as J.D. Power and Associates.”
Joe Becker, chief operating officer, adds, “This award is a true testament to the outstanding service our general agents and employees provide to our dealers and customers day in and day out.” The study looked at such areas as service, products, financial administration and fees, and profitability.
The study revealed that independent providers offer dealers more product choice and flexibility than OEM providers, and the representatives of independent providers are rated far superior to their OEM counterparts. Participation programs are one of the key factors driving higher satisfaction among dealers using independent providers, as these programs yield greater profits.
CNA National offers dealers a choice of participation programs that allow them to share in the underwriting profits and investment income generated by service contract sales, including Profit Equity® for small- to medium-sized stores, and Dealer EquitySM as well as reinsurance for larger dealerships and high-volume groups.
It is the only company whose service contracts have been endorsed since 1995 by the American International Automobile Dealers Association (AIADA), which represents nearly 10,000 franchised dealers nationwide. In addition, it has been the sole administrator of the Harley-Davidson Extended Service Plan since the program’s inception in 1991.
Founded in 1982 as Western National Warranty Corporation, the company was acquired by CNA in 1995 and changed its name to CNA National Warranty Corporation in 2000. About 180 people are employed at the company’s facility in Scottsdale, Ariz.
CNA, which is headquartered in Chicago, has been in business since 1897 and is one of the top 10 insurers in North America. It is rated “A Excellent” by A.M. Best.
J.D. Power and Associates is a global marketing information services firm operating in key business sectors including market research, forecasting, consulting, training and customer satisfaction.