More than half of firms with sales between $5 million and $100 million are very satisfied with insurers’ understanding of their needs and the coverage they offered to meet those needs according to a recent business survey by the Insurance Research Council.
Only two percent of the respondents are very dissatisfied with the insurance offered to them, while 30 percent are satisfied. Fifty-six percent reported being very satisfied with the coverages insurers offered to meet their needs.
Satisfaction with agents, brokers and current insurers is also high with these same firms. Seventy-six percent of respondents indicated great satisfaction with their agents and brokers, while 68 percent reported satisfaction with their current insurers.
Only 36 percent of respondents, however, reported they were very satisfied with commercial insurance companies overall. And although 73 percent of respondents are very satisfied with their current coverage, only 39 percent are very satisfied with the price, which is the most common impetus for them to change to a new insurer.
The study also found that, among the same group of companies, there is a belief that they could negotiate a lower premium for their commercial insurance under competition than under state regulation.
The survey of more than 1,200 companies found that 61 percent of respondents believe they would be able to negotiate a better premium, with 15 percent saying they definitely would and 46 percent saying they probably would.
In addition, most firms surveyed said they have the expertise to operate in an environment with less regulatory oversight of insurance policy forms. Nearly 90 percent of these firms are confident they can understand the insurance-related risks they face and can judge whether they have sufficient coverage.
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