A new study in insurance industry found that several important aspects determine the customer satisfaction in commercial insurance market. They include insurer profitability and broker expertise. However, J.D. Power stated in the 2016 Large Commercial Insurance Study that of the two aspects, broker expertise is the most significant attribute. In other words, the quality of advice provided by an insurance broker is more influential than profitability of the insurance company.
What Influences Customer Satisfaction In Insurance
Actually, the research found that, overall, customer satisfaction in commercial insurance is determined by five factors. They are service interaction, price, program offerings, claims, and billing process. A correlation was found between customer satisfaction and broker expertise and insurer profitability. However, customer satisfaction and broker expertise showed the most significant correlation.
In other words, brokers who have in-depth knowledge and expertise on how to the deal with the clients yield the highest level of customer satisfaction, followed by company profitability. The clients will provide positive review when the broker can answer all of their questions in a satisfactory way. The study also revealed that satisfaction with the broker performance was determined by the following factors:
- Quality of advice and guidance
- Ease of application and renewal process
- Fees paid by the clients for the broker (reasonableness)
- Variety of offerings
- Quality of program review
- Risk control services
- The services received by the clients
- Payment process and claim process
J.D. Power reported among the key indicators, quality of advice and guidance provided by the broker is the most critical point. It means that customer satisfaction in commercial insurance industry is highly influenced by the broker’s knowledge and communication skills. In addition, experience may play important roles. Experienced brokers are generally capable of delivering solutions for uncertainties faced by the clients. This is what a risk professional needs to master.