More than three quarters, or 77.5%, of general insurance consumers don't approach other companies when renewing their policy, while a further 14.8% approach other providers but don't change their policy, according to Roy Morgan's latest General Insurance Industry Currency Report.
The report also revealed the three insurers which have the most loyal customers based on the proportion of policyholders that renew without approaching another company: CGU, with 85.0%, RACV, with 82.8%, and CBA, with 82.6%. The least loyal customers, on the other hand, are with GIO, at 69.0% and AAMI, at 72.7%.
CGU has ranked first for the first time in Roy Morgan's list on loyalty, while RACV retained its second-place spot, but has fallen 1.3% from the July 2017 release. RACQ dropped three ranks from the previous year's top spot, down 2.9% from 85.2%.
Suncorp Insurance also saw a decline – from 82.9% in July 2017 down to 81.7% in March 2018, dropping from fourth place to sixth in the process.
“Roy Morgan data shows that general insurance policy holders primarily say that they change companies or at least shop around due to issues relating to better premiums,” said Norman Morris, industry communications director at Roy Morgan. “Although 14.8% of Australians with general insurance have shopped around, it is a positive outcome for brands that this hasn’t led to customers switching to a competitive brand. It is worth noting that satisfaction with general insurance is associated with higher levels of loyalty. Retaining customers is therefore likely to be impacted by more than price, but also by the many other factors that drive improvements in satisfaction.”
