Are Small Businesses Satisfied With Commercial Insurance Providers?

Are Small Businesses Satisfied With Commercial Insurance Providers

Are Small Businesses Satisfied With Commercial Insurance Providers – In 2015, Gray filed false loss claims that resulted in hundreds of thousands in compensation payments. In August of 2021, a complaint was filed claiming that Gray had intentionally submitted false claims statements in 2015. According to Waldref, Gray falsely reported a loss of over $35,000 in wheat, resulting in $180,000 in indemnity payments that he was not eligible for.

Waldref says the False Claims Act requires Gray to pay back triple the damages. Gray will be fined $607,284 plus the maximum penalty.

The USDA Risk Management Agency Administrator, Marcia Bunger, said, “We will continue to protect the public’s confidence in the crop insurance system by working closely with OIG, DOJ and other agencies to investigate and pursue cases of crop insurance fraud, misuse and abuse.”

J.D. Power’s Stephen Crewdson (Senior Director of global insurance intelligence) says that small business customer satisfaction continues to grow, even as premiums continue to rise. However, there are some significant differences in small business satisfaction based on size.

For example, small businesses with between five and 10 employees and 11 to 50 employees tend to be more satisfied than micro businesses with less than five employees. This variation should inform more tailored small business strategies for insurers.

Key Findings

  • Customer satisfaction hits record high: Satisfaction with commercial insurers among small businesses has reached 847, an increase of 5 points compared to 2022 and a 70 point increase in the last 10 years, according to J.D.Power. Satisfaction improved across all factors measured in the study, and claims, price and interaction led the way in terms of satisfaction.
  • Smallest Small Businesses Experience Lower Satisfaction: Overall satisfaction has increased across all categories of businesses studied in the study, but micro businesses (less than five employees) have a score of 823, compared to 857 for medium-sized and 857 for larger small businesses.
  • Proactive communication reduces the impact of increasing premiums: The report found that insurers that actively communicate with their small business customers about price changes and work with them to reduce premiums have seen an increase in overall customer satisfaction. For example, 36% of small business customers who modified their coverage to reduce price increases saw an increase in policy price satisfaction of 84 points. Similarly, 25% of those who modified their business processes to reduce risk saw an increase in price satisfaction of 135 points.
  • Social media is essential for communication: Small business customers are eager to receive cost-reduction tips, new product information, and state and federal regulatory updates via social media. According to the report, micro business customers who engage with their insurers through social media show an 88 point increase in overall satisfaction.

 

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