Australians unsatisfied with life and risk insurance deals
High costs mean we're increasingly looking to compare and switch providers.
Risk and life insurance customers, while "fairly likely" to renew their current policies, are less satisfied than they were a year ago, with increasing costs and a regulatory spotlight on the insurance industry spurring consumers to reconsider their options.
A new survey by Roy Morgan Research has found that in the year to October 2016, satisfaction among risk and life insurance customers fell from 69.3% to 67.5%. However, this figure remains higher than satisfaction levels three years ago (66.3%).
Despite the annual decline, five of the 13 largest funds improved their individual satisfaction ratings.
Almost all risk and life insurance customers (96.8%) said they were "fairly likely" to renew their existing insurance policy, although just one third (35.3%) were "extremely likely" to renew.
Among the largest Australian companies, Asteron Life triumphed in terms of customer satisfaction, rising 10.6% year-on-year to peak at 78.1%.
Despite a drop in policyholder satisfaction, down 5.3% over the last 12 months, Insuranceline was the next highest rated provider at 73.8%. Allianz too suffered a 5% loss in customer satisfaction, finishing in third place with 73.2%.
AMP customers were the least satisfied, returning a rating of just 66.1%.
Customers who said they were "very satisfied" with their insurer were most likely to renew, however, less than a quarter of all policyholders (24.3%) felt this way.
Almost half of all Insuranceline customers (47.7%) said they were "extremely likely" to renew their policy.
A similar proportion of Zurich (43.2%) and AIA Australia (41.4%) customers were "extremely likely" to continue with the same policy, while just one third (32.4%) of Real Insurance felt the same way.
Earlier this month, it was revealed satisfaction among the majority of private health insurance customers had also fallen over the past year, with around 1 in 10 policyholders indicating they would either leave or consider switching their fund in the next 12 months.
And while satisfaction among car insurance customers is at an incredibly high level, the sale of add-on insurance products through car dealers has come under scrutiny in recent months.
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