Small business owners struggling through the COVID-19 pandemic are largely unaware of efforts made by their commercial insurance providers to help them, and that has contributed to a decline in overall customer satisfaction.
More than half (59%) of small commercial insurance customers said they are not aware of insurer efforts to assist through initiatives such as modified terms and waived fees or other more creative solutions, according to the JD Power 2020 US Small Commercial Insurance Study. In instances where insurers have reached out proactively to their customers, however, satisfaction scores have climbed significantly.
“The huge financial strain small businesses have been facing throughout the past year is having a negative effect on small business insurance customer satisfaction, particularly when it comes to price,” said JD Power senior consultant of insurance intelligence Robert Lajdziak. “While that creates a tough challenge for insurers, there are things they can do to help. Notably, proactive communication – when an insurer reaches out to a business owner and offers guidance and help – has proven to lift satisfaction scores, even when customers are under significant financial duress.”
Chubb ranks highest in overall customer satisfaction with a score of 853 (on a 1,000-point scale), according to the study rankings. State Farm (852) ranks second while Erie Insurance and Liberty Mutual (850) rank third in a tie.
The study, which was based on responses from 1,854 small commercial insurance customers, examined overall customer satisfaction among small commercial insurance customers with 50 or fewer employees. Overall satisfaction comprised five factors (in order of importance): interaction; policy offerings; price; billing and payment; and claims. The study was fielded in July-October 2020.