Shopping around but sticking around: fewer people switch insurers
More customers are comparing providers before renewing their insurance policies, but fewer are deciding to switch after looking at the alternatives, according to Roy Morgan Research. In the past year, 9.4 million general insurance policies, or 19%, were considered for change, up from 8.3 million five years ago. But the number of policies actually changed to a different insurer was only 2.1 million, down from 2.7 million five years ago. “It appears more people are looking around at renewal time but fewer are actually switching,” Roy Morgan spokesman Norman Morris told insuranceNEWS.com.au. The latest quarterly update of Roy Morgan’s General Insurance Currency Report says that in the past year 78.4.% of policies were automatically renewed with the same insurer without other companies being approached for quotes – up from 77.5% the previous year. A further14.9% renewed with the same company after approaching other companies, while 4.2% changed companies. Companies with the most customers to renew without looking around were CGU (85.8%) the RACV Insurance (83.5%). The least “loyal” customers among the majors were with Youi at 70.6%, AAMI at 73.3% and GIO at 73.7%. Mr Morris says general insurance policyholders primarily change companies or shop around to seek better premiums. Other motivations can be bad claims experience, a new car, poor customer service, a better policy elsewhere and a recommendation by a family member or friend. Roy Morgan surveys 50,000 Australians a year who carry more than 120,000 general insurance policies.