With the onset of the COVID-19 pandemic came a slump in customer satisfaction among small business policyholders for the first time in seven years, according to J.D. Power, which attributed the decline to a combination of business disruption and economic uncertainty. However, that trend is now in reverse as customer satisfaction reached a score of 842 (out of 1,000), nearing the all-time high of 844 that was set in 2019.

This jump in customer satisfaction came despite an increase in premiums for many small business owners, J.D. Power reported. In fact, satisfaction with pricing increased three points this year, despite 30% of small businesses experiencing premium growth. J.D. Power reported proactive communications, particularly notifying clients in advance of rate increases, drove the gains in satisfaction with pricing.

"Insurers that notify their small business customers in advance of a price increase and proactively work with them to mitigate the financial effects of those premium increases are finding that it is possible to drive strong customer engagement and high levels of customer satisfaction even in a difficult economic environment," Stephen Crewdson, senior director of global insurance intelligence at J.D. Power, said in a release.