Satisfaction among small business insurance policyholders is significantly higher when insurance brokers and agents provide their clients with more guidance, according to the latest survey from J.D. Power in the United States.
Small business insurance customers are more likely to be satisfied with insurance agents or brokers who understand their customers’ needs, and meet with them in person to discuss their insurance.
Overall customer satisfaction among small business insurance customers was 777 points on a 1,000-point scale, according to the survey, based on 3,742 responses from insurance decision-makers in businesses with 50 or fewer employees that purchase general liability and/or property insurance.
When agents or brokers understand their customers’ business and provide guidance on risk, the satisfaction score was much higher, at 835 points. If neither of those expectations are met, satisfaction is around 645 points, according to the J.D. Power survey.
Policy offerings, rather than price, were the primary reason for selecting an insurer, the survey results suggest. The level of service provided is the primary reason customers said they stay with their insurer for more than two years.
Overall satisfaction was comprised of five factors (in order of importance): interaction; policy offerings; price; billing and payment; and claims.
Customer satisfaction was highest among businesses with 11 to 50 employees (at 790 points), compared with businesses of four or fewer (769 points). J.D. Power attributes this to brokers and agents interacting more with larger customers. Three times as many deal are made outside of the broker’s office with these larger businesses.
“Providing face-to-face consultation, from policy review to helping customers understand price adjustments initiated by the insurer, is crucial for customer retention and satisfaction,” said Jeremy Bowler, senior director of the insurance practice at J.D. Power.
“Those small business customers who have regular face-to-face contact with their insurance agents are more likely to understand their coverage, its value and the reason for a price adjustment should one occur. These customers are more likely to be satisfied and loyal to the insurance brand than those who don’t have regular in-person interactions.”
Bowler also noted that satisfaction is higher when insurers inform small business customers about price changes in person (823 points) than when they inform customers by phone (805) or email (783).
Tell us: How do you interact with your business clients? Are you seeing more success selling face-to-face with business decision makers?
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