2021 Insurance Provider NPS Benchmarks
This article first appeared on Clearlyrated
Insurance brokers – like other business service providers – rely heavily on client satisfaction and service quality to retain key accounts and differentiate from the competition. As such, NPS can be a leading indicator of revenue retention, growth, and brand differentiation in a crowded marketplace.
What is NPS?
Net Promoter® Score (NPS) is a client satisfaction and service quality metric based on a single survey question that asks insurance clients how likely they are to recommend your firm to a friend or colleague. Clients respond using a numeric scale of 0-10, ten being extremely likely and zero being not likely at all.
NPS is calculated by subtracting the % of detractors (those who respond with a 6 or lower) from the % of promoters (those who respond with 9 or 10). Click here for a more detailed look at the NPS methodology.
NPS is unique because it offers standardized measurement and reporting on client satisfaction and service quality that can be applied across the insurance industry as a whole, at the company-level, within specific niche areas, even by broker or agent.
Insurance Provider NPS in 2021
Insurance provider NPS is a target topic for ClearlyRated’s annual industry benchmark study, and in 2021 clients of insurance brokers reported an NPS rating of 34% based on overall satisfaction with their provider (our sample focused on corporate insurance clients in the U.S. and Canada).
Year-over-year data shows a remarkable NPS jump for 2021, exceeding highs last seen in 2019. This can be attributed to the effects of the COVID-19 pandemic, and how appreciative clients were for the support they received throughout an unprecedented, challenging year. Insurance providers are gradually improving the level of service they provide to their clients, but their client satisfaction is still below average. Which means that insurance brokers have a unique opportunity to stand apart from the competition by investing in client satisfaction and service quality.
For reference, global NPS standards classify 50% NPS as excellent and 70% NPS as world-class. And recognizable service leaders like Nordstrom have an NPS of 75% compared to Comcast, a notorious service laggard, whose clients give them a -1% NPS. Click here to learn more about the NPS methodology.
How does your company stack up?
If you’re not already leveraging NPS at your organization, we hope you consider this article a call-to-action. Not only do client satisfaction and service quality represent opportunities to differentiate in an increasingly commodified service industry, they are fuel for company growth.
And if “you can’t manage what you don’t measure” – then you certainly won’t be able to improve it either.
Ready to get started with NPS? Contact the ClearlyRated team for insights, best practices, and a tour of our survey platform (designed specifically to support business service providers).