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How Commercial Insurance is Rated by Consumers

Posted By Administration, Tuesday, January 9, 2018

Commercial insurance customers are generally satisfied with commercial insurers. Their approval rating — says the J.D. Power 2017 Large Commercial Insurance Study — went up over 2016’s survey. The reason is because of renewed focus on more tailored and diversified products.

The thumbs up comes from 2,500 very happy risk professionals who say insurance companies are working harder to understand the needs of their clients. Here’s how satisfaction is graded in the fourth annual study:

  Service interaction

  Program offerings


  Billing process



Insurance brokers and agents are graded in nine areas:

  Quality of advice and guidance

  Reasonable fees

  Ease of renewal

  Effectiveness of risk control services

  Variety of program offerings

  Effectiveness of program review


  Given services received

  Billing and payment process

  Claims process


RIMS — Risk Management Services — conducted the survey and graded each item on a 1,000 point scale. Here’s the top three insurers:

1.    XL Catlin — 806

2.    Chubb — 783

3.    The Hartford — 772


The top three brokers:

1.    Lockton — 856

2.    Arthur J. Gallagher — 855

3.    Aon — 822


J.D. Power spokesman David Pfeiffer said, “Amid a sustained period of stagnant rates, top-performing large commercial insurers have set themselves apart from the competition by offering a wider variety of coverage options and services to meet the specific risk needs of their customers. While we expect rates to start rising in certain catastrophe-exposed lines for 2018 after the heavy catastrophic losses experienced during the 2017 hurricane season, the customer expectation for tailored product offerings has now become a critical part of the business insurance product mix.”


Here are some other things found in the survey about insurers:

  The average score for large commercial insurers is 761.

  That’s up 7% over 2016

  That jump is due mostly because of a 10% increase in satisfaction with program offerings

  Cyber insurance premiums hit $1.35 billion in 2016 — up 35% from 2015

  However, cybercrime programs are among 2017’s lowest rated programs averaging 7.26 on a 10-point scale


Findings about insurance customers:

  Commercial insurance customers aren’t likely to become advocates

  Whether a consumer will recommend an insurance product or service is much lower than for services like business utilities or personal auto insurance

  Commercial insurance consumers are very impressed with insurers they believe completely understand their business

  Their average is 827 and a 141-point improvement over 2016

  Compare that to 686 for those perceived as not understanding


Source link: My New Markets

Tags:  How Commercial Insurance is Rated by Consumers  Insurance Content  Insurance Industry  Insurance News  Weekly Industry News 

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