State Farm ranks highly among small commercial insurers
TROY, Mich., August 23, 2022–(BUSINESS WIRE)–A toxic combination of business disruptions and economic uncertainty has strained relationships between small businesses and their commercial lines insurers during the pandemic, leading to a decline in customer satisfaction starting in 2020 for the first time in seven years. According to the JD Power 2022 US Small Commercial Insurance Study,℠ released today, that trend has reversed, with overall small business customer satisfaction down 13 points (on a 1,000-point scale), just 2 points below its pre-pandemic high.
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JD Power 2022 US Small Commercial Insurance Study (Graphic: Business Wire)
“It’s remarkable that we’re seeing an increase in satisfaction across all factors, including price – at a time when 30% of small business customers have experienced an insurance premium increase,” he said. Stephen Crewdson, Senior Director of Global Insurance Intelligence at JD Power. “This is the highest proportion of customers experiencing price increases that we have seen in the past eight years. Insurers are looking to inform their small business customers in advance of price increases and proactively work with them to mitigate the financial impact of those premium increases. Even in a difficult economic environment, strong customer engagement and It is possible to drive high levels of customer satisfaction.”
Some of the key findings from the 2022 study are:
Customer satisfaction improves following pandemic-era dips: Overall small business customer satisfaction with commercial insurers is 842, up 13 points from 2021. All factors in customer satisfaction studies improve and are led by interaction; billing and payment; and policy proposals. Customer satisfaction with commercial insurance rose steadily from 2013 to the pandemic, reaching an all-time high of 844 in 2019.
Small businesses feel less satisfied: Although overall customer satisfaction improved across all categories of businesses evaluated in the study, the micro category — which includes businesses with fewer than five employees — had a lower overall satisfaction score (826) than medium-sized (841) and large (852). ) small businesses.
Active communication about premiums influences satisfaction: Despite 30% of small businesses experiencing premium increases, customer satisfaction with the price of their small business insurance policies rose 3 points this year. The study found that active communication plays a large role in that trend. When customers experience an increase—but are notified in advance, discuss ways to mitigate the impact of the increase and fully understand why their premiums increased—they are nearly as satisfied with the price as customers who did not have an increase.
State Farm Ranked highest in overall customer satisfaction with a score of 856. chub (855) Second and Nationwide (854) ranks third.
The 2022 US Small Commercial Insurance Study is based on responses from 2,254 small commercial insurance customers. The study, now in its 10th year, examines overall customer satisfaction among small commercial insurance customers with 50 or fewer employees. Overall satisfaction includes five factors (in alphabetical order): billing and payment; Claims; interaction; policy proposals; and price. The study was fielded from March to June 2022.
For more information about the JD Power US Small Commercial Insurance Study, visit https://www.jdpower.com/business/insurance/us-small-commercial-insurance-satisfaction-study.
View the press release online at http://www.jdpower.com/pr-id/2022105.
About JD Power
Jedi Power is a global leader in consumer insights, advisory services and data and analytics. A pioneer in the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understand consumer behavior, JD Power has been providing sharp industry intelligence on customer interactions with brands and products for more than 50 years. The world’s leading businesses across major industries rely on JD Power to guide their customer-facing strategies.
JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business. The JD Power Auto Shopping Tool can be found at JDPower.com.
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