Insurers gain a small-biz boost from digital, AI channels: JD Power

Improvements in digital solutions are driving small-business customer satisfaction for commercial insurers, according to JD Power's latest report.

The study found that overall satisfaction with commercial insurers rose 15 points, to 713, on a 1,000-point scale. JD Power attributes this increase largely to improved digital channels that allow customers to more easily manage their insurance policies. As a category, digital channels led in satisfaction increases, jumping 29 points from last year.

Previous JD Power research shows that nearly half of customers buy insurance digitally, and many customers use mobile apps and online portals to manage accounts, make payments, access documents and complete service requests. Insurance shoppers who used AI-powered assistants or chatbots on insurer websites or apps reported an average satisfaction score of 635 points — 132 points higher than those who did not use such tools.

"The fact that fewer businesses are experiencing insurer-initiated rate increases is certainly helping to improve customer satisfaction, but the real story here is the trend toward significantly improved satisfaction with insurers' digital channels," said Stephen Crewdson, managing director of global insurance intelligence at JD Power, in the press release.

Separately, AI adoption is growing among small businesses. According to a survey from ERGO NEXT, small-business owners value using AI tools to research insurance rates even more than they trust agents: 36% of respondents have used AI tools to look up business insurance options, compared to 31% who have asked an agent. Of those who used AI this way, 94% say they trust the information they received from the AI tool. 

"Insurers have spent heavily on improved digital tools that make it easier for customers to engage and manage their policies any time, day or night, and those efforts are paying off in the form of higher levels of overall satisfaction," said Crewdson. "The trend is most significant among the smallest small businesses, which are now able to access a level of service that was not previously available to them."