State Farm ranks highest among small commercial insurers
TROY, Mich.–(BUSINESS WIRE)–A toxic combination of business disruption and economic uncertainty strained relationships between small businesses and their commercial lines insurers during the pandemic, causing customer satisfaction to decline starting in 2020 for first time in seven years. According to the JD Power 2022 US Small Business Insurance Study,℠, released today, that trend has reversed, with overall small business customer satisfaction climbing 13 points (on a scale of 1,000 points) at only 2 points lower than its pre-pandemic level.
“It’s worth noting that we’re seeing increased satisfaction across all factors—including price—at a time when 30% of small business customers have experienced an increase in their insurance premium,” said Stephen Crewdson, senior director of global insurance intelligence at JD Power. “This is the highest percentage of customers experiencing price increases that we have seen in the last eight years. Insurers who notify their small business customers in advance of a price increase and proactively work with them to mitigate the financial effects of these premium increases are finding that it is possible to drive strong customer engagement and high levels of of customer satisfaction even in a difficult economic environment. .”
Below are some key findings of the 2022 study:
- Customer satisfaction improves after pandemic era decline: Overall small business customer satisfaction with commercial insurers is 842, up 13 points from 2021. Customer satisfaction improves across all factors studied and is driven by interaction; billing and payment; and policy offerings. Customer satisfaction with commercial insurance rose steadily from 2013 until the pandemic, reaching an all-time high of 844 in 2019.
- Smaller small businesses are least satisfied: Although overall customer satisfaction improves in all business categories assessed in the study, the micro category – which consists of businesses with fewer than five employees – has a lower overall satisfaction score (826) than medium (841) and larger (852). ) small businesses.
- Proactive premium increase communication affects satisfaction: Customer satisfaction with the price of their small business insurance policies is up 3 points this year, despite 30% of small businesses experiencing a premium increase. The study finds that proactive communication plays a large role in this 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 went up—they are almost as satisfied with the price as customers who did not experience an increase at all.
Ranking of studies
State Farm ranked highest in overall customer satisfaction with a score of 856. Chab (855) ranks second and On a national scale (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 consists of five factors (in alphabetical order): billing and payment; pretends; interaction; policy offers; and the price. The study took place 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.
See the press release online at http://www.jdpower.com/pr-id/2022105.
About JD Power
JD 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 provided intelligent 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.
About JD Power and Advertising/Promotion Rules: www.jdpower.com/business/about-us/press-release-info