Small Business Eye Insurance Provider Trust, Loyalty and Brand Endorsement

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

A JD Power 2024 US Small Commercial Insurance study found that among small businesses with the most confidence in their insurers, 81% “definitely will renew with their carrier” and 79% “definitely recommend” their carrier.

The survey measured (in order of importance) trust, price for coverage, product/coverage offerings, ease of doing business, people, problem solving and digital channels on a 1,000-point scale.

The average overall satisfaction of small business customers with commercial insurers was 697.

Both small business satisfaction and confidence have increased despite 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, while 16% were due to changing business needs, and 13% result from changes made by customers. their policies.

When customers were given advance notice and understood the reasons behind premium increases, trust was 142 points higher than when they were blindsided by 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 generated an overall mean trust score of 761, and trust was 106 points lower (655) among those who did not receive personalized information.

American Family ranked highest in overall customer satisfaction with a score of 727. State Farm (719) was second and Allstate (716) was third.

The survey was based on responses from 2,817 small commercial insurance customers. It examined overall customer satisfaction among small commercial insurance customers with 50 or fewer employees.