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Commercial lines insurer customer satisfaction among small businesses, which plummeted for two years during the pandemic, is showing signs of recovery, according to a new JD Power study.
Business closures and disruptions, combined with economic uncertainty and supply chain issues during the pandemic, have strained relationships between small businesses and their insurance companies and caused them to chant “I can’t get no satisfaction” from 2020, as compliance declined for the first time in seven years. said JD Power.
But that trend has reversed, with overall small business customer satisfaction rising 13 points (on a 1,000-point scale) to just 2 points below its pre-pandemic high, according to the study.
“Remarkably, we are seeing increases in satisfaction across all factors, including price, at a time when 30% of small business customers have experienced an increase in insurance premiums,” said Stephen Crewdson, senior director of JD Power’s global insurance intelligence. “That is the highest proportion of customers experiencing price increases that we have seen in the last eight years.”
Overall small business customer satisfaction with commercial insurers is 842, up 13 points from 2021. Customer satisfaction improves across all factors in the study and is led by engagement; billing and payment; and policy offers. Customer satisfaction with commercial insurance increased steadily from 2013 through the pandemic, reaching an all-time high of 844 in 2019.
The smaller companies, however, seem the least satisfied. Companies with fewer than five employees have a lower overall satisfaction score (826) than small, medium (841) and large (852) companies.
Customer satisfaction with the price of their small business insurance policies is up 3 points this year, despite 30% of small businesses seeing an increase in premiums. The study finds that proactive communication plays a significant role in that trend. When customers experience an increase but are notified in advance, discuss ways to mitigate the effect of the increase, and fully understand why their premiums increased, they are almost as satisfied with the price as customers who did not experience an increase.
“Insurers that notify their small business customers in advance of a price increase and proactively work with them to mitigate the financial effects of those premium increases are finding that it is possible to drive strong customer engagement and high levels of customer satisfaction. client even in a difficult economic environment. environment,” Crewdson said.
Among individual insurers, State Farm ranked highest in overall customer satisfaction with a score of 856, JD Power said. Chubb (855) ranked second and Nationwide (854) ranked 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 is made up of five factors: billing and payment; claim (es; Interaction; policy offers; and the price. The study was carried out from March to June 2022.