More than three quarters (77.5%) of general insurance customers don't approach any other insurer when renewing their policy. Another 14.8% approach another company but don't change their policy, new research from market research firm Roy Morgan shows.
The findings from Roy Morgan’s General Insurance Industry Currency Report are that the most loyal customers, based on the proportion of policy holders that renew without approaching another company, are with CGU (85.0%), the RACV (82.8%) and CBA (82.6%). The least loyal are GIO (69.0%) and AAMI (72.7%).
Mr Norman Morris, Industry Communications Director, Roy Morgan said, “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. 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.”