Life insurers see minor dip in satisfaction levels
Two-fifths see an increase in customer satisfaction.
Life insurers saw their satisfaction levels dip slightly for the year to October, down 1.5% to 66.2%, according to a Roy Morgan study.
But the survey, which rated the largest 13 insurers in Australia, found that 5 of the 13 saw their satisfaction levels go up. All of the top five rated life insurers saw their satisfaction ratings increase.
In the top spot was InsuranceLine with a satisfaction rating of 79.2%, an increase of 5.4% year-on-year and 13% higher than the industry average. In second place was Allianz (75.2%, up 2%) followed by AIA Australia (73.2%, up 6.6%), Real Insurance (72.6%, up 1.2%) and Suncorp Insurance (72.6%, up 0.1%).
The bottom five was made up of some major life insurance brands including Asteron (65.9%, down 12.2%), AMP (65.1%, down 1%) and CommInsure (64.2%, down 4.2%).
In last place was the Swiss giant Zurich (60.9%, down 9.9%), which was edged out by Zurich's latest acquisition OnePath (63.4%, down 3.7%).
Industry communications director for Roy Morgan, Norman Morris, said that the results showed a swing towards smaller funds and that while roughly 80% of risk and life insurance policies are renewed automatically, lower satisfaction can discourage new customers and those renewing their policies.
"The link between satisfaction and likely renewal levels has been shown to be very positive and as such it has the real potential to increase long-term profitability through its impact on customer retention and acquisition," Morris said in a statement.
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