American Family beats State Farm and Allstate in new JD Power rankings

JD Power has released its latest ranking of small commercial insurers, with American Family coming in first, beating companies like State Farm and Allstate in overall customer satisfaction.

Based on responses from 2,817 small commercial insurance customers, below is JD Power’s overall customer satisfaction index from its 2024 U.S. Small Commercial Insurance Customer Study. Insurers’ ratings were based on a 1,000-point scale.

1. American Family – 727
2. State Farm – 719
3. Allstate – 716
4. Erie Insurance – 706
5. Chubb-703
6. Philadelphia Insurance – 702
7. Nationwide – 701
8. Study average – 697
9. Liberty Mutual – 696
10. The Hanover – 692
11. CNA Insurance – 690
12. The Hartford – 685
13. Farmers – 683
14. Travelers – 679
15. AIG-675
16. Car Owners Insurance – 665

The study was conducted from February to June this year and assessed satisfaction across seven key dimensions: trust, price of insurance coverage, product/insurance offering, ease of doing business, people, problem solving and digital channels.

JD Power found that despite a difficult environment with rising premiums – 36% of small business owners reported an increase in the past year – customer satisfaction, loyalty and willingness to recommend remain high when trust is built with commercial insurers.

“Trust is the most important variable in the customer relationship with commercial insurance providers,” notes Stephen Crewdson, senior director of global insurance intelligence at JD Power.

“On virtually every business metric that is important to insurers – customer loyalty, advocacy, premium retention, share of wallet – small business owners who trust their insurers are significantly more valuable. While some insurers do an excellent job of maintaining that trust, others still have a long way to go.”

Customer satisfaction with commercial insurers averaged 697 points on a 1,000-point scale, with a 77-point difference between the most and least trusted insurers. Insurers with the highest trust scores were praised for their effectiveness in helping customers understand their insurance coverage, address business needs and tailor products to specific requirements.

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