Insurance renewal: loyalty or laziness?
Almost 78% of general insurance customers don't compare their options before renewing their policy.
The latest research shows Australians are not doing their research when it comes time to renew their insurance policies, with the majority forgoing a comparison of competitors before extending their agreement.
New research from Roy Morgan's General Insurance Industry Currency Report reveals more than three quarters (77.9%) of general insurance customers don't approach any other company when renewing their policy.
Slightly more than one in ten policyholders (14.6%) approach another company but don't change policies. However, this proportion represents a marginal gain (+3.2%), compared to figures released in 2013.
Over the last four years, there has been a modest fall in the proportion of policyholders who switch companies.
Fewer Australians changed from their current provider to a new one in 2017 (4.6%) than did in 2013 (5.8%).
Consumers who held general insurance policies with RACQ (85.2%), RACV (84.1%) and RAC (83.8%) were least likely to switch to a new provider in 2017. Least loyal were Budget Direct (63.3%) and GIO (67.2%) customers.
The research also found that in the last four years, of the 12 largest general insurance companies, only Youi (+15.3%) and Apia (+5.3%) saw improvements in customers not approaching competitors when renewing.
And it's not just general insurance policies that Australian consumers auto renew. A survey conducted by finder.com.au in March 2017 found that Australians stayed with their health fund for an average of 11.8 years.
Considering a new policy or is it time to renew? Compare insurance quotes online and get protected.