These are the latest findings from Roy Morgan’s Single Source survey of over 50,000 consumers per annum, including over 30,000 with comprehensive car insurance.
Satisfaction with comprehensive car insurers shows small decline in 2017
Overall satisfaction with comprehensive car insurers declined marginally over the last year from 82.9% down to 82.3% but some insurers defied this trend and showed improvement. The biggest improvers were Shannons (up 2.6% points), YOUI (up 1.9% points), AAMI (up 1.9% points) and RAC (up 1.6% points). The major brands to show declines in satisfaction over the year were GIO (down 6.3% points), RACV (down 2.7% points), Allianz (down 2.5% points) and APIA (down 2.5% points).
Satisfaction with Comprehensive Car Insurance (Largest Sixteen Insurers)
1. Includes brands not shown Source: Roy Morgan Single Source (Australia). 12 months to October 2016, n= 32,606, 12 months to October 2017, n = 31,787 Base: Australians 14+ with comprehensive insurance
Shannons (92.6%) and RAA (90.8%) were the clear leaders in satisfaction, followed by RAC (88.4%) and APIA (88.0%). NRMA the market leader in terms of the number of policies, had 85.0% customer satisfaction and was above the market average (82.3%) and showed an improvement of 1.1% points over the year. The second largest player is AAMI and it also scored above average with 84.0%, having improved by 1.9% points over the last 12 months.
Satisfaction improves likelihood of customer retention
Customer retention is important in a market where around 2.5 million (20%) comprehensive car insurance policy holders per annum either change their provider or at least consider doing so. Policy holders that say that they are ‘extremely likely‘ to renew their insurance with the same company have a satisfaction rating of 93.1%.
Likelihood of Renewing Car Insurance with Same Company and Satisfaction Level
Source: Roy Morgan Single Source (Australia). 12 months to October 2016, n= 32,606, 12 months to October 2017, n = 31,787 Base: Australians 14+ with comprehensive insurance
As the likelihood of renewing with the same company declines, we see that this is associated with much lower satisfaction levels. Among policy holders who are unlikely to renew with the same company they have a satisfaction rating of only 44.5%, compared to 83.5% for the ‘total likely’ to renew segment.
Norman Morris, Industry Communications Director, Roy Morgan says:
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