More than three quarters (77.9%) of general insurance customers do not approach any other company when renewing their policy. An additional 14.6% approach another company but don't change, says Roy Morgan's "General Insurance Industry Currency Report".
At the same time, the proportion of general insurance policyholders renewing with the same company after approaching others has increased from 11.4% in 2013 to 14.6% currently, the findings from the market research company show.
The combined result of policyholders that don’t look around when renewing their policy (77.9%) and those that do but don’t move (14.6%), indicates that there has been an overall decrease over the last four years in the proportion who switch.
Major variations in insurance company loyalty
The most loyal customers, based on the proportion of policyholders that renew without approaching another company, are with RACQ (85.2%), the RACV (84.1%) and RAC (83.8%). The least loyal are Budget Direct (63.3%) and GIO (67.2%).
Mr Norman Morris, Industry Communications Director, Roy Morgan Research, said: “Our research shows that general insurance policy holders primarily say that they change companies or at least shop around due to issues relating to better premiums. Although there has been an increase in the proportion shopping around, it is a positive outcome that this hasn’t led to a higher level of switching.
“It is worth noting that satisfaction with general insurance is closely associated with higher levels of loyalty, as shown by the fact that the top performers for loyalty also have well above average satisfaction levels. Retaining customers is therefore likely to be impacted by more than price but also by the many other factors that drive improvements in satisfaction.”