TROY, Mich.–(BUSINESS WIRE)–The toxic combination of business disruptions and economic uncertainty strained the relationship between small businesses and their insurers during the pandemic, causing customer satisfaction to drop from 2020 for the first time in seven years. According to the JD Power 2022 US Small Commercial Insurance Study,℠ released today, that has changed, with small customer satisfaction rising 13 points (on a 1,000-point scale) to 2 points below pre-pandemic levels.
“It is interesting that we see an increase in satisfaction for all reasons – including price – at a time when 30 percent of small customers have obtained additional insurance,” he said. Stephen Crewdson, senior director of global insurance at JD Power. “That is the largest number of customers who are increasing prices than we have seen in the last eight years. Insurers who notify their small business customers in advance of rate hikes and work proactively to mitigate the effects of rising financial stress are finding that it is possible to drive strong customer base and high customer satisfaction even during economic downturns. .”
The following are some of the highlights of the 2022 survey:
- Customer satisfaction improves during the pandemic: Overall customer satisfaction of small and commercial insurers is 842, an increase of 13 from 2021. Customer satisfaction improves on all factors in the study and is led by interaction; wages and salaries; and plastic donations. Customer satisfaction with commercial insurance rose steadily from 2013 to the pandemic, reaching 844 in 2019.
- Small business owners are often dissatisfied: Although customer satisfaction is improving in all business groups analyzed in the study, the small group – which includes businesses with less than five employees – has a lower score (826) than the medium (841) and larger (852) ) small businesses.
- Fast communication at premium increases satisfaction: Customer satisfaction with the value of their small business insurance is up 3 points this year, despite 30% of small business increases. Research has found that positive communication plays an important role in these situations. When customers have an increase—but are notified in advance, discuss ways to mitigate the effects of the increase and have a better understanding of why their payments increased—they are almost as satisfied with the price as customers who have no increase at all.
State Farm ranks highest in overall customer satisfaction with a score of 856. Room (855) is second and All over the country (854) is in third place.
The 2022 US Small Insurance Policy Study was based on responses from 2,254 small insurance customers. The survey, now in its 10th year, examines customer satisfaction among small insurance clients with 50 or fewer employees. Total satisfaction is made up of five factors (in alphabetical order): payment and payment; what to say; interaction; plastic donations; and price. The scholarship is offered from March to June 2022.
For more information on the JD Power US Small Business 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
The power of JD is a global leader in consumer intelligence, 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 business intelligence on customer interactions with brand and products for more than 50 years. The world’s leading businesses in major industries rely on JD Power to guide them through the customer experience process.
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