With the P&C insurance market still in a soft or stagnant cycle, insurers are challenged to compete on price. As a result, insurers have had to find new avenues to differentiate to meet the needs of customers. One of these avenues has been service excellence. However, that trend seems to be shifting, and today, within the small commercial insurance marketplace, the divide in satisfaction between larger-size accounts and mid- to micro-size accounts is greater than ever before. It would appear that carriers are aligning their servicing levels to expectations of account profitability and catering to larger accounts. However, insurers may be missing a golden opportunity to cater to smaller accounts that have the potential for growth, especially as the economy continues to strengthen.
It may behoove carriers to come up with different strategies to cater to larger- vs. smaller-size accounts. What type of strategies will be most effective for these different sizes of accounts, and how can insurers best understand how to cater to the needs of small commercial customers?
The J.D. Power U.S. Small Commercial Insurance Satisfaction StudySM provides subscribers with insights directly from small commercial customers about their experiences with and expectations of their insurance policy. For example, the 2017 study found that digital demands continue to impact the small commercial market, as the preference for self-service has grown by a notable 28% since 2015 (48% in 2015 vs. 61% in 2017). The study also showed that while preference has grown, there is still a lack of awareness of digital offerings, which presents insurers with an opportunity to improve their communication with this market.
In addition to key insights directly from small commercial customers, study subscribers also receive an industrywide baseline and benchmarks for customer satisfaction, allowing insurers to identify their own strengths and weaknesses and those of their competitors. Subscribers will also receive information on critical customer issues that impact loyalty and retention.
Study deliverables include:
- Customized executive presentation and in-person discussion that includes data-driven, actionable recommendations for achieving strategic goals
- Competitive survey data and industry reports
- Data and analytical tools for performance insights and competitive peer comparisons
- Access to VoX 3.0—a study that is available on the interactive interface, VoX 3.0