December 10, 2014 by Canadian Underwriter
In a recent survey of risk professionals, respondents who were not responsible for enterprise risk management (ERM) reported they were “generally more satisfied” with their organizations’ commercial insurance carriers and brokers than those who were, Risk and Insurance Management Society Inc. (RIMS) suggested Wednesday.
RIMS and McGraw Hill Financial Inc.’s J.D. Power unit announced Monday the release of their 2014 Large Commercial Insurance Report, based on responses from “nearly 1,000 risk professionals or employees of an organization that provide oversight or are members of their organization’s risk management team.”
The respondents’ employers had at least US$100 million in annual revenue or operating budget. Those organizations had bought a property, workers’ compensation or auto insurance policy with a “profiled” insurer or broker.
The report includes “customer satisfaction index” scores of insurers and brokers, with the highest possible score of 1,000.
Related: Risk Elements – How some Canadian organizations apply enterprise risk management
“Risk professionals who are not responsible for their organization’s ERM function generally are more satisfied with their insurers/broker than those risk professionals who hold ERM responsibilities,” RIMS stated in a release. “Overall satisfaction is lowest among risk professionals who are responsible for their organization’s enterprise risk management (541). “
RIMS says the report gives a “measure of overall satisfaction levels among large business insurance risk professionals in the United States and Canada.”
The satisfaction index scores, for insurers, are based on satisfaction with five factors: interaction, program offerings, price, claims and billing and payment.
“Claims, a dominant driver of satisfaction among customers who have filed a claim, is one of the lowest rated factors across property, workers’ compensation, and auto insurance,” RIMS and J.D. Power stated.
In claims, auto insurers had the highest satisfaction index, at 798, while workers’ compensation insurers had the lowest satisfaction index, at 734.
The respondents’ satisfaction with their brokers was based on four factors: ease of contacting; reasonableness of fees; advice and guidance in selecting program offerings; and timeliness of resolving contact.
“The report findings suggest that risk professionals who are responsible for ERM are underserved by insurers and brokers in this area,” stated Timothy Bebout, commercial insurance practice leader at J.D. Power, in a release. “There is an opportunity for insurers and brokers to provide greater support and resources to customers in organizations that use ERM practices.”
Key findings of the report include:
The following large business commercial insurer and brokers are included in the industry averages in the Commercial Insurance Report:
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