August 25, 2022
What: J.D. Power’s Small Commercial Insurance Study shows that customer satisfaction has largely rebounded from its pandemic lowpoint. The top performers in the study were State Farm, Chubb, and Nationwide.
Why it matters: The carriers with the most money are winning the race for customer satisfaction, which is scary for every other carrier in the industry. Smaller carriers will turn to tech vendors to help bridge this gap.
What: Georgia’s Insurance Commissioner is up in arms because of how Allstate used its “file and use” action to push through several rate increases, resulting in a rate hike of more than 40% this calendar year for auto coverage. The Commissioner is now pursuing legislative means of preventing such actions in the future.
Why it matters: This is the first of many battles where regulators will fight back against broad-brush rate increases. The best results for carrier rate increases will be specialized, segmented increases.
What: While most small business owners still buy insurance through an agent or broker, 85% of those surveyed by Deloitte said they’re interested in alternative channels. This is raising concern for some that the legacy channels for selling insurance could be at risk.
Why it matters: Disintermediation is at risk, but that doesn’t mean that the traditional channels are going away, and it also doesn’t mean that traditional insurers are going away. The traditional agency channel has the potential to really leverage new digital techniques in its existing market control to grow in this evolving industry. Digitization is absolutely required for success going forward.
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