Score One for the Insurance Industry

Some good news regarding the insurance industry’s reputation: Small-business owners trust independent insurance agents and commercial insurance carriers significantly more than banks, health care companies and stock brokers.

As part of a broader effort to stay appraised of the evolving needs of small businesses, The Hanover Insurance Group Inc., a P&C insurer, commissioned The Pert Group, a third-party independent consulting and research firm to conduct a study. The study, based on a survey of 501 small-business owners with less than 30 employees, reveals that independent agents are trusted 48 percent more than banks, 97 percent more than health care companies and 295 percent more than stock brokers. Carriers are trusted 25 percent more than banks, 66 percent more than health care companies and 150 percent more than stock brokers.

Trust was identified by respondents as the single most important consideration when choosing an insurance agent. Eighty-six percent of small business owners rated trust "very important." Competitive pricing, responsiveness and value were also rated important.

The study also uncovered that small-business owners actually have the highest level of trust in independent agents, compared with all the other financial services industries in the survey. In fact, the majority of small-business owners reported that they consider independent agents trustworthy.

"The trust that small-business owners place in independent agents, underscores Hanover's strategy of partnering closely to distribute our unique portfolio of small-business products and services through a selective group of professional independent agents," said Michael Keane, president, small commercial at The Hanover.