Face-to-face interaction boosts satisfaction among small business insurance customers

Satisfaction among small business policyholders is significantly higher when a broker or agent provides more guidance, the latest survey from J.D. Power in the U.S. suggests.

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.

Overall satisfaction was comprised of five factors (in order of importance): interaction; policy offerings; price; billing and payment; and claims.

When agents or brokers understand their customer’s 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 J.D. Power.

In terms of selecting an insurer, policy offerings were the primary reason for going with a company, rather than price, the survey results also suggest. Level of service is the primary reason customers stay with their insurer for more than two years.

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, as well as being made outside of the broker’s office.

“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).