Small businesses hit hard by COVID-19 say insurers came up short in 2020
For the first time in 8 years of the J.D. Power study, customer satisfaction amongst commercial insureds declined in 2020.
Businesses across every sector in every corner of the nation faced unprecedented challenges in 2020. Amplifying their struggles, many commercial policyholders were surprised to discover losses incurred as a result of the global pandemic were not covered under their existing policies.
In a new study from J.D. Power, the consequences of these events are proving to have impacted customer satisfaction significantly in 2020, despite any attempts by insurers to help their clients during these unprecedented times.
In its eighth year, J.D. Power’s 2020 U.S. Small Commercial Insurance Study found that more than half (59%) of small commercial insurance customers were not aware of insurer efforts to assist through initiatives such as modified terms and waived fees or other more creative solutions.
In instances where insurers have reached out proactively to their customers, however, researchers note that satisfaction scores climbed significantly.
Ranking the top insurers for customer satisfaction in 2020
For its 2020 study, J.D. Power surveyed 1,854 small commercial insurance customers with 50 or fewer employees. Overall satisfaction is comprised of five factors, in order of importance: interaction; policy offerings; price; billing and payment; and claims.
Taking the number one spot on the list for overall customer satisfaction in 2020 was Chubb, with a score of 853 based on a 1,000-point scale. State Farm ranked second with a score of 852, followed by Erie Insurance and Liberty Mutual tied at third with a score of 850.
Filling out the remaining top 10 spots were Farmers in fourth, followed by Travelers, Allstate, Nationwide and The Hartford.
In a statement, Robert M. Lajdziak, senior consultant of insurance intelligence at J.D. Power explained that the huge financial strain on small businesses in 2020 directly influenced small business insurance customer satisfaction most particularly on price.
“While that creates a tough challenge for insurers, there are things they can do to help,” Lajdziak said. “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.”
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