Over 1 million Australians consider switching life insurers

Richard Laycock 15 August 2018 NEWS

Price of cover the number one reason why people are looking to switch.

Not happy with your life insurance? Well, you might not be alone. In the 12 months to June 2018, over one million Aussies considered switching their risk or life insurer, with 242,000 people pulling the trigger and switching their life insurance, according to the latest research from Roy Morgan.

The research found that in addition to the 242,000 policies that switched during this period there were a further 766,000 policies where the policyholder approached another company but ultimately renewed their policy with their current insurer. This brings total policies with the potential to change to 1,008,000 or roughly 10.8% of the total risk and life insurance market.

It may come as no surprise that the cost of cover made up two of the top three reasons people were looking around, with 42.8% citing better rice/premium as their number one reason for looking. This was followed by always shop around (26.8%) and renewal price higher than last year (9.0%).

Who's switching

Those aged between 35 to 49 made up a large chunk of those looking around for better cover, with 425,000 or 42.2% of the total. Roy Morgan industry communications director Norman Morris had some ideas on why.

“This group is also likely to be coping with young families and other cost pressures including mortgages and as a result may not always be interested in taking out risk and life insurance despite the fact that often they have the greatest need," Morris said.

If you're looking to switch insurers it's best to make sure you've compared your options. Use the finder quote tool to compare life, income protection, trauma and total permanent disability cover and see if you can find a better deal today.

Compare cover at a glance

Name Product Maximum cover Maximum Entry Age Minimum Sum Insured Guaranteed Future Insurability Expiry Age Short Description
$1,000,000
64
$100,000
No
No expiry age as long as premiums are paid
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™.
$1,500,000
65
$3,000
No
80
Choice of cover options and flexible premiums to suit your budget. No lock-in contracts and fast application.

$15,000,000
69
$0
Yes
99
Protect your family with NobleOak’s Life Insurance cover. Plus, pay no premium for 2 months with combined cover. T&C’s apply.
$1,500,000
65
$100,000
Yes
99
Tailored life insurance so you know what you're covered for upfront. Take out a policy and get a $100 bonus gift after holding cover for 2 months. Ends 31 March 2019.
$1,500,000
69
$50,000
Yes
99
Receive a 10% discount on the second person when two applications are submitted at the same time, and both policies are issued.
$1,500,000
64
$100,000
No
No expiry age as long as premiums are paid
Cover up to $1.5 million with Guardian Life Insurance.
$2,000,000
74
$100,000
Yes
99
Join Qantas Life Insurance and earn up to 150,000 Qantas points. T&CS apply including minimum premium and policy hold periods apply to earn points.
$1,500,000
65
$100,000
Yes
No expiry age as long as premiums are paid
Go into the draw to win (1 of 10) $1,000 eftpos gift cards when you get a quote for Medibank Life Insurance. T’s and C’s apply.
$1,000,000
65
$100,000
No
No expiry age as long as premiums are paid
Receive one month's premiums off every year if you pay annually upfront. T’s and C’s apply.
$2,000,000
59
$50,000
Yes
99
Get flexible life insurance up to the sum of $2,000,000.

Compare up to 4 providers

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