In small commercial lines, millennials are more satisfied with insurance interaction than any other generation, according to the J.D. Power 2016 Small Commercial Insurance Study.

The study reports that millennial satisfaction with small commercial insurance interaction—which includes website performance, agent and broker interaction, and call centers—improved 51 points on a 1,000-point scale since last year—the largest increase of any generational cohort.

Of all J.D. Power satisfaction studies, this is the only one to find Gen Y is the most satisfied generation.

“We find Gen Y actually has a higher rate of face-to-face interaction with their agent, which means they’re seeking out personal expertise and advice with respect to their business,” explains Greg Hoeg, vice president of U.S. insurance operations at J.D. Power. “They seem to have a greater concern about the risks of their business and want those risks to be more fully addressed”—compared to their baby boomer counterparts, whose businesses don’t tend to grow as rapidly.

These findings are especially useful, Hoeg says, for agencies that offer both commercial and personal lines of business. “Someone who is young and starting a small business is looking for the type of trusted relationship they have with their personal lines coverage,” he points out. “They want a risk professional. Independent agents have an advantage because they work with more than one carrier, and they have the expertise to offer to their clients.”

Hoeg advises agents to consider generations and their “significant foundational differences” as time goes on: “Currently, in our study, the biggest proportion of respondents tend to be boomers. But when you consider the satisfaction among Gen Y, companies should be paying attention to differences in attitudes among younger generations and their older cohorts as population shifts.”

In general, the fourth annual study reveals a 30-point jump in overall satisfaction, from 793 in 2015 to 823 in 2016. As insurance rates have steadily decreased over the past three years, small business insurance carriers have turned to customer interaction in order to differentiate themselves—resulting in higher customer satisfaction overall.

While many personal lines agents often struggle with the consumer perception that insurance is a commodity, small business commercial insurance customers value interaction and policy offering more than price, followed by billing and payment, and lastly, claims. Among these five, satisfaction with interaction increased the most this year, recording a 32-point surge from 2015.

“One reason for this is the soft market,” Hoeg says. “There’s been a heightened amount of competition in small commercial in particular in the last couple years, because most carriers have recognized it as an attractive market segment compared to large commercial. Generally, in a market where you have decreasing prices and heightened competition, service will improve.”

Because policy offering is the second most important factor in small commercial insurance customers’ overall satisfaction, independent agents have a leg up over captive agents, given their ability to quote from a variety of carriers.

But there’s still room for improvement. The small commercial insurance sector should consider what may happen if pricing increases or the economy turns, Hoeg says. “Will the idea of service-based competition be a focus of carriers? I think it will be,” he predicts. “Overall, you’re going to see customer satisfaction as much more of a factor for how businesses compete in the insurance world.”

Jordan Reabold is IA assistant editor.