Over 1 million Australians consider switching life insurers

Posted: 15 August 2018 4:17 am
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 Fully Underwritten? Terminal Illness Benefit Optional Extras
NobleOak Life Insurance
$15,000,000
69
$3,000,000
TPD cover, Trauma cover
Get your two months free when you buy NobleOak Life Insurance policy. Offer ends 30 June 2021. T&C's apply.
ahm Life Insurance
$1,500,000
65
$1,500,000
TPD cover, Trauma cover
ahm Health members can save 10% off premiums.
Real Family Life Cover
$1,000,000
64
$1,000,000
TPD cover, Trauma cover
Get a refund of 10% of the premiums you've paid (in the first 12 months) with The Real Reward™ .
Zurich Ezicover Life Insurance
$1,500,000
69
$1,500,000
No optional
Get the first month free and a 10% discount if you take out a second life insurance policy (discount applies to second policy). T&C’s apply.
Guardian Life Insurance
$1,500,000
64
$1,500,000
TPD cover, Trauma cover
Cover up to $1.5 million with Guardian Life Insurance.
Insuranceline Life Cover
$1,500,000
65
$1,500,000
Trauma cover
Get a $100 bonus gift after 2 months. Offer ends 30 September 2021. Plus get 12 months cover for the price of 11 if you pay for life insurance annually. T&Cs apply.
Medibank Life Insurance
$2,500,000
70
$2,500,000
TPD cover, Trauma cover
You could win a $2K EFTPOS gift card when you get a Life Insurance quote by 20 July, 2021. There is a new winner every fortnight. Plus, Medibank health members save 10% on premiums every year. T&Cs apply.
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