For small commercial businesses, insurance satisfaction is a matter of trust

Trust affects customer satisfaction, loyalty and brand advocacy more than any other factor when small businesses choose a commercial insurance provider.

JD Power’s 2024 US Small Business Insurance Study found that among small businesses with the most confidence in their insurer, 81% said they would “definitely” renew with their carrier, and 79% said they would “with they will definitely recommend” their operator.

“Trust is the most important variable in the customer relationship with commercial insurance providers,” said Stephen Crewdson, senior director of global insurance insights at JD Power.

The survey, now in its 12th year, measured trust, price for coverage, product/coverage offerings, ease of doing business, people, problem solving and digital channels.

“In virtually every business metric that matters to insurers — customer loyalty, advocacy, premium retention, share of wallet — small business owners who trust their insurers represent significantly more value,” Crewdson said. “While some insurers are doing a great job of cultivating that trust, others have a lot of work to do.”

On the survey’s 1,000-point scale, American Family ranked highest in overall customer satisfaction with a score of 727. State Farm ranked second and Allstate ranked third. The average overall customer satisfaction of small businesses (50 or fewer employees) with commercial insurers is 697.

Small business satisfaction and confidence are facing the challenges of rising premiums. In 2024, 36% of small businesses saw a premium increase, up from 34% in 2023. Of these, the insurer initiated 51% of the increases, 16% were due to changing business needs, and 13% resulted from changes made by customers. policies. When customers are given advance notice and understand the reasons behind a premium increase, trust is 142 points higher than when they are used to unexplained increases, the survey found.

Insurers ranked with the highest trust levels also offered customized products. However, only 55% of small businesses surveyed said they received personalized information from their insurer. Personalization leads to an overall average trust score of 761, and trust is 106 points lower (655) among those who did not receive personalized information.

TOPICS
Commercial Lines