Australians want a more satisfying claims process for home insurance
Satisfaction levels for car insurance claims are much higher.
Australians are less satisfied with home insurance claims than they are with car insurance claims. This could prove challenging to an industry that is already in the spotlight for its rising premiums.
The new research from Roy Morgan shows that only 80% of home insurance claimants were satisfied with how their claims were handled, compared to 87% for car insurance.
No single home insurer achieved the average level of satisfaction found with vehicle insurers, but there is good news at the top. Five of the eight largest home insurers (by number of claims) largely outperformed the home insurance average. Suncorp had the highest rating with 86%, followed by RACV (85%), CGU (84%), APIA (83%) and NRMA (80%).
Roy Morgan industry communications director Norman Morris says the entire industry could learn from these leaders.
“How general insurance companies handle claims is a critical factor in establishing long-term loyalty and trust, as this is the real touch point with members. This research shows that there are major differences in satisfaction levels between companies when it comes to household insurance claimants and that it would be invaluable to learn from the best performers,” Morris said in a statement.
Data from the Insurance Council of Australia shows that home insurance premiums increased an average of eight percent per year for 15 years leading up to 2016 (although it has slowed in recent years). It was only 2% per year for car insurance over the same time period.
This is the first year Roy Morgan included the “claims satisfaction” question in its annual Single Source survey of more than 50,000 Australian consumers. Starting next year, they will be able to show how these satisfaction levels trend over time.
- Australian homes underinsured for as much as $443,000, according to new research
- Greater transparency for home and contents insurance
- You’ll never guess the household item with the highest insurance value
- NSW home insurance premiums set to hike after levy increase
- Are Australians risking heartache by failing to insure this one investment?