Large business commercial insurance customers are significantly more satisfied when 11 key performance indicators (KPIs)—best practices that have the most influence on customer satisfaction—are met by brokers and insurers, according to the inaugural J.D. Power and RIMS (the risk management society) 2014 Large Commercial Insurance Report.
The report examines industry-level performance metrics among large business commercial insurers and brokers, and highlights best practices that are critical to satisfying large business insurance risk professionals.
The 11 KPIs focus on three core areas: limiting customer-reported billing errors and renewal issues; understanding the customer’s business; and communicating effectively.
The report measures risk professionals’ satisfaction with commercial property, workers’ compensation and auto insurance providers based on: interaction; programme offerings; price; billing and payment; and claims.
Satisfaction with insurance brokers is also measured on: ease of contacting; fairness of fees; advice and guidance in selecting programme offerings; and timeliness of resolving contact.
Overall satisfaction was highest for brokers, with property insurers second, followed by auto and workers’ compensation.
Billing and payment satisfaction was found to be significantly lower among workers’ compensation customers than among property and auto customers.
ACE, Arthur J. Gallagher & Co, FM Global and The Hartford performed particularly well among the large business commercial insurers and brokers profiled in the report.
“Whether the results of the survey were surprising or expected, we hope that it encourages a meaningful dialogue and actionable performance initiatives,” said Mary Roth, RIMS executive director.
“The primary objective is to foster improved customer satisfaction throughout the large commercial insurance industry.”
Enterprise risk management (ERM) is becoming a more prevalent risk management function at many organisations, according to the survey, with nearly 40 percent of risk professionals indicating that ERM falls within their area of responsibility.
Risk professionals who are not responsible for their organisation’s ERM function generally are more satisfied with their insurers/broker than those risk professionals who hold ERM responsibilities.
Overall satisfaction is lowest among risk professionals who are responsible for their organisation’s enterprise risk management.
“The report findings suggest that risk professionals who are responsible for ERM are underserved by insurers and brokers in this area,” said Timothy Bebout, commercial insurance practice leader at J.D. Power.
“There is an opportunity for insurers and brokers to provide greater support and resources to customers in organisations that use ERM practices.”
