RACT marginally ahead of RAA in general insurance customer satisfaction
The latest Roy Morgan customer satisfaction findings have revealed RACT as the winner of the General Insurer of the Month Award for September 2019, with a customer satisfaction rating of 93%. The insurance arm of the Tasmanian motoring organisation has now attained an unbeatable lead in the general insurer category for the 2019 annual customer satisfaction award.
The Roy Morgan General Insurance Customer Satisfaction Report shows South Australian-based RAA was a close second in the category (92%), followed by People’s Choice Credit Union (90%), Shannons (90%) and Western Australia’s RAC (88%).
These latest customer satisfaction ratings have been drawn from the Roy Morgan Single Source survey, derived from in-depth face-to-face interviews with around 50,000 Australians each year in their homes.
Roy Morgan CEO Michele Levine says that when it comes to customer satisfaction in general insurance, RACT has been the big performer for some time.
“Since first winning the General Insurer of the Year Award in 2015, RACT secured three subsequent victories. A win this year would take its tally to a very impressive five consecutive annual awards.
“RAA’s performance this year has also been noteworthy. It has won two monthly awards, and placed second behind RACT in every remaining month. RAA has also achieved a larger percentage increase to its rating (+3%) than category winner RACT (+2%), compared to twelve months ago.
“Insurance companies often have to battle against quite negative public perceptions, which makes the customer satisfaction ratings of our leading general insurers even more remarkable. Strong satisfaction ratings are a big tick of approval for insurers,” Ms. Levine said.
The four leading general insurers improved their satisfaction ratings when compared to a year ago, with Shannons showing the largest gain of 5%. RAC was the only top five general insurer that slipped in ratings over the same period, although it only declined 1%.
Leading general insurer customer satisfaction ratings
Source: Roy Morgan Single Source Australia, October 2017 – September 2018, n = 15,879. October 2018 – September 2019, n= 15,726. Base: Australians 14+ who hold general insurance policies.
What do we know about RACT customers?
Besides the obvious, that they are located in Tasmania, our research reveals a third of RACT customers are retired and unsurprisingly the typical RACT customer is aged in the 65+ bracket. In addition half of RACT’s customers have a diploma or university degree under their belt.
When it comes to discretionary expenditure, around three-quarters of RACT customers fall into the light or medium spenders categories. The Roy Morgan Value Segment containing the highest number of RACT customers is Traditional Family Life, which is a segment representing the core of 'middle Australia' motivated by security, reliability and providing better opportunities for their family.
RACT customers are more likely than the average Australian to watch television on the ABC and SBS, but less likely to watch channels Seven, Nine and Ten. You’ll often find this group watching the nightly news. RACT customers are 23% more likely than the average Australian to believe globalisation brings more problems than it solves, and well over half believe that corruption is one of the major problems facing our country.
Roy Morgan Customer Satisfaction Awards
While the Roy Morgan Customer Satisfaction Awards focus on satisfaction ratings, there is far more in-depth data available. Roy Morgan tracks a huge range of variables including customer satisfaction, engagement, loyalty, advocacy and NPS across a wide range of industries and brands. Learn more at the new Roy Morgan Customer Satisfaction Dashboard https://www.customersatisfactionawards.com.
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Margin of Error
The margin of error to be allowed for in any estimate depends mainly on the number of interviews on which it is based. Margin of error gives indications of the likely range within which estimates would be 95% likely to fall, expressed as the number of percentage points above or below the actual estimate. Allowance for design effects (such as stratification and weighting) should be made as appropriate.
| Sample Size | Percentage Estimate |
| 40% – 60% | 25% or 75% | 10% or 90% | 5% or 95% | |
| 1,000 | ±3.0 | ±2.7 | ±1.9 | ±1.3 |
| 5,000 | ±1.4 | ±1.2 | ±0.8 | ±0.6 |
| 7,500 | ±1.1 | ±1.0 | ±0.7 | ±0.5 |
| 10,000 | ±1.0 | ±0.9 | ±0.6 | ±0.4 |
| 20,000 | ±0.7 | ±0.6 | ±0.4 | ±0.3 |
| 50,000 | ±0.4 | ±0.4 | ±0.3 | ±0.2 |
