Trusted Publications & Research for Commercial Insurance Buyers: J.D. Power, AM Best and NAIC

A practical, U.S.-focused ultimate guide for commercial insurance buyers, risk managers and procurement teams. This guide explains what J.D. Power, A.M. Best and the NAIC do, how their outputs differ, how to use them together when buying commercial insurance (BOP, GL, WC, commercial auto, cyber, E&O, etc.), and how to avoid common pitfalls when relying on third‑party data during vendor selection and renewals.

Contents

• Why authoritative third‑party sources matter for commercial buyers
• Quick executive summary of J.D. Power, A.M. Best and the NAIC (what each is best for)
• Side‑by‑side comparison table
• Deep dive: J.D. Power — customer satisfaction insights and what they tell buyers
• Deep dive: A.M. Best — financial strength, BCAR and interpreting FSRs
• Deep dive: NAIC — regulator coordination, complaint data and practical uses
• How to combine these sources in due diligence, RFPs and renewals (checklists & templates)
• Example: sourcing a BOP + Workers’ Comp program (step‑by‑step)
• Limitations, red flags and expert best practices
• Action plan (30/60/90 day checklist) and recommended readings / references

Why authoritative third‑party sources matter for commercial buyers

When you buy commercial insurance for your business, you’re not only buying coverage—you’re buying a claims partner, a balance sheet backing and a service relationship. Trusted third‑party publications and regulators help you:

• Compare insurers on service, satisfaction and real customer experience (J.D. Power).
• Assess financial strength and solvency—how likely the carrier is to pay claims over the long run (A.M. Best).
• Verify regulatory status, complaint history and market conduct at the state and national level (NAIC).

Used together, these sources reduce procurement risk, inform carrier selection and support contractual or policy conditions (e.g., minimum FSR requirements in RFPs). Below is an executive snapshot of each source and why buyers rely on them.

Executive snapshot: What each source is best for

• J.D. Power — Customer satisfaction and service performance (claims experience, digital channels, trust). Helpful when you care about responsiveness, retention and policyholder experience. J.D. Power’s Small Commercial and Large Commercial studies measure satisfaction across multi‑dimensional indexes and sample thousands of customers. (carriermanagement.com)

• A.M. Best — Financial strength ratings (FSRs), capital adequacy and issuer credit ratings. Use A.M. Best to screen carriers by solvency and capitalization and to set minimum rating thresholds in procurement. A.M. Best also publishes model outputs such as the BCAR (Best’s Capital Adequacy Ratio) used to evaluate insurer capitalization. (bestsreview.ambest.com)

• NAIC (National Association of Insurance Commissioners) — Regulatory coordination, consumer complaint data (CIS), model laws and access to state insurance departments. Use NAIC to confirm licensing, search state complaint histories, and access model regulatory guidance that affects policy forms and filings. (content.naic.org)

Quick comparison: J.D. Power vs. A.M. Best vs. NAIC

Feature / Use	J.D. Power	A.M. Best	NAIC
Primary output	Consumer & agent satisfaction studies (index scores)	Financial Strength Ratings (FSR), BCAR, credit analysis	Regulatory guidance, complaint databases (CIS), model laws
Best used for	Service & experience selection, broker evaluation	Solvency screening, RFP minimums, long‑term counterparty risk	Licensing checks, complaint research, state regulatory contact
Cost / Access	Study summaries often public; full datasets & custom research are paid	Public FSRs available; detailed reports/products are paid	Many consumer tools free (CIS); some state datasets may require accounts
Frequency of updates	Annual or periodic consumer studies	Ongoing—ratings reviewed/updated as conditions change (annual checkpoints)	Continuous (state filings, complaint ingestion quarterly/ongoing)
Limitations	Samples and methodology may exclude niche segments	Rating lag; ratings are analyst opinions not guarantees	Complaint indices can be skewed by market share and reporting differences
Ideal procurement use	Narrow candidate list to carriers with strong service metrics	Final solvency screen and contract language (FSR minimums)	Validate licensing, complaints, filings and state enforcement actions

(See the article sections below for detailed guidance and authoritative citations about each output.) (carriermanagement.com)

Deep dive — J.D. Power: Customer satisfaction research and how buyers use it

What J.D. Power measures (short)

• J.D. Power runs multi‑year U.S. commercial insurance studies (e.g., U.S. Small Commercial Insurance Study) that measure overall customer satisfaction on a 1,000‑point scale across dimensions such as trust; price for coverage; product/coverage offerings; ease of doing business; people; problem resolution; and digital channels. Recent U.S. small commercial studies surveyed ~2,800 respondents and reported an industry average near the high 600s (on the 1,000‑point scale). (carriermanagement.com)

How procurement and risk teams use J.D. Power

• Shortlist carriers that consistently score above industry average on claims resolution and issue/problem resolution.
• Use satisfaction dimensions to prioritize service attributes in the RFP (e.g., "claims problem-resolution" weight = 30%).
• Validate broker performance and market reputation when adding a new MGA or wholesale partner.

Example J.D. Power insights and implications

• Finding: customers who understand premium changes tend to exhibit the same satisfaction scores as those who didn’t receive increases—communication about rate changes matters. Procurement implication: require carriers to provide renewal communication plans and pass‑through templates. (carriermanagement.com)

Limitations & cautions

• J.D. Power is a survey of experience and satisfaction—useful for service expectations, less so for balance‑sheet risk.
• Rankings are often at the brand or business unit level and may mask individual underwriting company variations across states.
• Studies typically exclude very large commercial accounts or niche specialty lines—confirm whether your line/segment was in scope.

Recommended procurement clause (sample)

• “Selected insurer must maintain a J.D. Power customer satisfaction index at or above industry average for small commercial (or provide equivalent third‑party service metrics).”

Deep dive — A.M. Best: Financial strength, BCAR and how to interpret ratings

What A.M. Best provides

• A.M. Best is a credit rating agency focused on insurance. Its Financial Strength Ratings (FSRs) and issuer credit ratings indicate an insurer’s ability to meet policyholder obligations. The FSR scale runs from A++/A+ (Superior) downward into the vulnerable categories. A.M. Best also provides analytical products (BCAR — Best’s Capital Adequacy Ratio) that model insurer capitalization under stress. (bestsreview.ambest.com)

How buyers use A.M. Best

• Set minimum FSR thresholds in procurement (e.g., require carriers to be rated at least A- / A).
• Use BCAR outputs for enterprise risk and counterparty concentration analysis—especially for layered programs, captives, or reinsurer panels.
• Verify ratings history (not just current rating) to identify deteriorating trends.

Reading the ratings: practical tips

• A current A.M. Best FSR is a snapshot backed by financial statement analysis and management engagement—it’s an analyst opinion; look for outlooks and “under review” flags that indicate potential near‑term changes. (bestsreview.ambest.com)
• For layered programs, don’t rely solely on the group headline rating—check the specific underwriting entity that will write the risk in each state.

A.M. Best caveats

• Ratings can lag dramatic market events; always supplement with up‑to‑date financial filings, Trend analysis and NAIC statutory data for granular solvency checks.
• For exotic or surplus lines carriers, use national scale ratings and ask for additional capital models (e.g., BCAR output, reinsurance program details). (businesswire.com)

Recommended procurement clause (sample)

• “Primary and reinsurer panels must hold an A.M. Best Financial Strength Rating of A- (Excellent) or better; insurers with a negative rating outlook require prior written approval.”

Deep dive — NAIC: role, complaint data and regulator intelligence

What the NAIC does (in short)

• The NAIC is the U.S. standard‑setting organization governed by state insurance commissioners; it coordinates data, peer standards, model laws and provides tools (like the Consumer Information Source) that consolidate state consumer complaint data, financial transparency and regulator contacts. It supports state regulators and provides consumer guidance—it is not a federal regulator but a coordinating association of state regulators. (content.naic.org)

Key NAIC tools for buyers

• Consumer Information Source (CIS): search an insurer’s closed complaint history, licensing and financial summary. Use CIS to validate license status and complaint trends by line and by state. (content.naic.org)
• Model laws and guides: NAIC model acts and circulars influence state rulemaking—important for policy wording, forms and product approvals.
• State web map & regulator contacts: direct links to state insurance departments for consumer escalations and formal complaint filing.

How to use NAIC in procurement and vendor due diligence

• Confirm licensing in operating states and check whether any market conduct actions or enforcement orders exist against underwriting entities.
• Pull the NAIC complaint index and closed‑complaint reports for the insurer’s underwriting companies that will write your policies. If an entity shows elevated complaint indices in the lines you’re buying (e.g., commercial property), ask for remediation evidence and claims handling SLAs.

Limitations & interpretation cautions

• Complaint indices are useful but can be skewed by small market share, reporting practices and line exposure; they must be interpreted in context of premium volume and state reporting differences. Don’t assume an elevated index equals systemic failure without further inquiry. (marketscreener.com)

Recommended procurement clause (sample)

• “Insurer(s) shall provide CIS Closed Complaint reports for all underwriting entities doing business on the program within 10 business days of request; any material adverse trends must be disclosed and approved.”

How to combine J.D. Power, A.M. Best and NAIC in your buying process (practical playbook)

Use this layered approach—each source answers a different procurement question.

1. Market shortlisting (early stage)

   • Use J.D. Power and industry reports to spot carriers with strong service scores for your market segment (e.g., small commercial retail, hospitality). Prioritize carriers with consistent scores across time. (carriermanagement.com)

2. Financial & solvency screen (mid stage)

   • Apply A.M. Best FSR minimums and review BCAR or capital adequacy reports for carriers proposed for primary or layer limits. Ask carriers to provide recent statutory filings and reinsurance schedules. (bestsreview.ambest.com)

3. Regulatory & complaint check (validation)

   • Use NAIC CIS to confirm licensing, review complaint history in the relevant lines and states, and identify market conduct actions. If NAIC shows state actions, request remediation documentation. (content.naic.org)

4. Broker & MGA vetting

   • Cross‑check broker/MGA satisfaction through J.D. Power commercial broker studies and check licensing and disciplinary actions with NAIC and state departments. Ask for references in your industry.

5. Contracting & SLAs

   • Embed rating & complaint thresholds, notification requirements (e.g., notify buyer if FSR changes or if complaint index > X), and claims KPIs (e.g., average claim closure time by line).

Due‑diligence checklist (printable)

• Licensing & regulator checks

  • Verify each insurer and MGA license in all operating states (NAIC / state website).
  • Pull CIS Closed Complaint Reports for each underwriting entity. (content.naic.org)

• Solvency & financials

  • Confirm current A.M. Best FSR and outlook; collect recent statutory financials and BCAR output if available. (bestsreview.ambest.com)
  • For layered structures, obtain entity‑level RBC (Risk‑Based Capital) and reinsurance recovery concentration.

• Service & claims performance

  • Review recent J.D. Power study scores for the relevant commercial segment (small vs. large) and key dimensions (claims, problem resolution, digital). (carriermanagement.com)
  • Request insurer KPIs: claims acknowledgment time, average indemnity payout time, average days to close, and escalations averaging.

• Contractual protections

  • Include minimum FSRs, notification triggers for rating changes, and hold‑harmless language where appropriate.
  • Specify claims support, catastrophic response plans and audit rights.

• References & proof

  • Request 3–5 commercial references in your industry and check for policy wording consistency across those accounts.
  • Ask for evidence of market conduct compliance and any corrective action plans if complaints are elevated.

Example: sourcing a BOP + Workers’ Comp program for a regional specialty contractor

Scenario: Your firm is a mid‑sized contractor with 45 employees operating in 4 states. You need a multi‑state BOP and a state‑filed workers’ comp program.

Step 1 — Initial shortlist (week 1)

• Identify carriers that historically underwrite contracting risks and that appear in J.D. Power small commercial surveys or have strong trade reviews for claims handling in construction lines. Use J.D. Power results to prioritize carriers for service. (carriermanagement.com)

Step 2 — Financial screen (week 1–2)

• Require A.M. Best FSR ≥ A- for primary carriers and ≥ A for reinsurers that will provide excess coverage. Request BCAR summaries for the last 2 years for carriers writing >30% of the program. (bestsreview.ambest.com)

Step 3 — Regulatory check (week 2)

• Use NAIC CIS to pull closed complaint reports for the specific underwriting entities in each state where you operate, focusing on workers’ comp and commercial property claims ratios. Review any recent market conduct examinations or fines. (content.naic.org)

Step 4 — Service validation (week 2–3)

• Ask shortlisted carriers for:
  • Claims KPIs specific to construction claims (average time to first contact; percentage of indemnity payments within 30/60/90 days).
  • A sample claims communication plan for catastrophe or multi‑claim events.

Step 5 — Contract & governance (week 3–4)

• Insert procurement clauses:
  • Minimum FSRs & notification of rating downgrade.
  • Right to exit/replace carrier if NAIC complaint index for relevant line exceeds X for two quarters in a row without remediation.
  • Quarterly claims reporting and a dedicated claims liaison.

This integrated approach balances service, solvency and regulatory safety.

Limitations, red flags and common pitfalls

• Overreliance on a single metric

  • Don’t use only A.M. Best FSR or only NAIC complaint indices to make final decisions. Each metric answers a different question—combine them.

• Misreading complaint indices

  • Complaint indices should be normalized by premium and market share. Very small writers can have high indices from a handful of complaints; very large writers can have stable indices despite operational problems. Always confirm with state regulator context. (marketscreener.com)

• Lag and “under review” flags

  • Ratings and indexes are updated periodically; a rating “under review” or a sudden negative outlook is an actionable red flag and requires immediate follow‑up with the insurer.

• Entity vs. brand confusion

  • National brands may include multiple underwriting entities with different ratings, complaint histories or states of licensure. Always map the actual contracting entity.

• Specialty lines and surplus lines

  • For surplus lines and admitted vs. non‑admitted differences, rely more on financial models (BCAR), reinsurer strength and contractual protections—some NAIC complaint data may not fully capture surplus markets.

Practical templates & RFP language (select snippets)

RFP: Minimum requirements

• “Carrier must hold an A.M. Best Financial Strength Rating of A- (Excellent) or higher at the time of award and maintain it throughout the contract term; any downgrade or FSR under review must be reported to the buyer within 5 business days.” (bestsreview.ambest.com)

RFP: Service & performance requirements

• “Carrier must provide evidence of customer satisfaction, including J.D. Power commercial study scores where applicable, and provide two examples of improvement initiatives in claims handling during the last 24 months.” (carriermanagement.com)

Contract addendum: NAIC reporting clause

• “Insurer shall provide CIS Closed Complaint Reports for each underwriting entity upon request. The insurer shall disclose any regulatory examinations, fines, or market conduct corrective action plans for the preceding 36 months.” (content.naic.org)

Action plan: 30 / 60 / 90 days

• 0–30 days

  • Map current carriers to underwriting entities and collect latest A.M. Best FSRs and NAIC CIS reports.
  • Pull J.D. Power market segment results for your industry.

• 30–60 days

  • Complete solvency reviews (BCAR/RBC) for primary carriers and reinsurers.
  • Issue an RFP that includes FSR minimums and service KPIs tied to J.D. Power dimensions.

• 60–90 days

  • Negotiate contract addenda with rating downgrade triggers, complaint reporting, and claims SLA.
  • Formalize quarterly monitoring cadence: A.M. Best alerts, NAIC complaint checks and a service survey pulse.

Expert insights (what in‑house counsel & risk teams often miss)

• Combine hard and soft data

  • Use J.D. Power to weight service and communication in vendor selection and A.M. Best for long‑term payout capacity. NAIC fills the regulatory & conduct checks that neither ratings nor surveys capture fully.

• Use the right level of granularity

  • For multi‑state programs, require insurer data by underwriting entity and state. Ratings are sometimes given at the group level while the contract attaches to a single underwriting company.

• Build escalation playbooks

  • If a carrier’s FSR is downgraded mid‑term, have pre‑agreed mitigation steps: additional collateral, reduced limits, or replacement lead carrier paths.

• Don’t forget reinsurance

  • Reinsurer quality and concentration can materially affect claim payment prospects for catastrophic events—request A.M. Best ratings for the reinsurer panel.

Recommended readings & authoritative references

External sources cited in this guide:

• J.D. Power reporting and coverage of the U.S. Small Commercial Insurance Study (examples and methodology reporting). (carriermanagement.com)
• A.M. Best announcements on Best’s Capital Adequacy Ratio (BCAR) model and Best’s Review guidance to the Financial Strength Rating scale. (businesswire.com)
• NAIC overview and consumer guidance including the Consumer Information Source (CIS) and NAIC functions. (content.naic.org)
• Commentary about complaint index interpretation and limitations. (marketscreener.com)

Internal (cluster) resources — continue your research

• Business Insurance Essentials Resource Hub: Official US Government and Industry Links for Buyers
• Top Regulatory Bodies Every US Business Should Know: DOL, OSHA, NAIC and State Insurance Departments
• Major Carrier Guides & Industry Reports: Where to Find Authoritative Commercial Insurance Data
• State Insurance Department Directory: Links to Filing Requirements, Forms and Consumer Alerts
• How to Vet Online Insurance Information: Checklist for Evaluating Authoritativeness and Accuracy

Final checklist for buyers (one‑page)

• Map insurer brand → underwriting entity (state‑by‑state).
• Require A.M. Best FSR minimums and subscribe to rating alerts. (bestsreview.ambest.com)
• Shortlist carriers with above‑average J.D. Power commercial/service scores in your segment. (carriermanagement.com)
• Pull NAIC CIS closed complaint reports and check for market conduct actions before award. (content.naic.org)
• Insert contractual triggers for rating downgrades and sustained complaint‑index deterioration.
• Ask for references and industry‑specific claims KPIs (construction, hospitality, healthcare, etc.).
• Confirm reinsurance program strength and concentration.

Using these authoritative sources together gives commercial insurance buyers an evidence‑based, defensible approach to carrier selection—balancing service, solvency and regulatory risk. If you’d like, I can:

• Produce a tailored RFP template with embedded FSR, CIS and J.D. Power‑informed scoring weights for your industry and size.
• Run a quick due‑diligence summary for up to three carriers you’re considering (license check, latest A.M. Best FSR and NAIC CIS summary). Which carriers or underwriting entities would you like me to review?