In the year to September 2016, satisfaction among motor vehicle insurance policy holders was 82.1%, up from 80.1% over the same period in 2013, and well ahead of a decade ago (74.1% in 2006).
Most of the largest insurers improved their satisfaction scores, with 96.8% of policy holders being at least fairly likely to renew their insurance with their existing company.
These are the latest findings from Roy Morgan’s Single Source survey of over 50,000 consumers pa which includes detailed coverage of over 40,000 motor vehicle insurance policies. The size of this survey enables an in-depth understanding of insurance behaviour and trends, providing unique and detailed insights for brokers involved in this market.
Among the 18 largest insurers, only five showed declines in satisfaction over the last three years. They were QBE (down 3.2% points), Suncorp (down 1.5% points), YOUI (down 0.5% points), Coles (down 0.5% points) and Shannons (down 0.5% points).
Norman Morris, Industry Communications Director, Roy Morgan Research says: “It is a positive sign that the satisfaction levels of motor-vehicle insurance policy holders with their insurers have improved over the last decade, but around a quarter of them are still shopping around at renewal time (although obviously this varies by insurer). Roy Morgan data shows that price is the major reason for looking around but other reasons such as bad claims experience, poor service and changing vehicle all play a part.”
— Roy Morgan (@roymorganonline) November 3, 2016
“To be successful, it is crucial for insurance companies to retain existing customers. But although a very high proportion of policy holders say they are likely to renew with the same company (96.8%), less than one in three (30.5%) indicate that they are ‘extremely likely’ to renew. In order to increase the likelihood that customers will renew, more attention needs to be given to improving the proportion of ‘very satisfied’ policy holders.”
Overall, just over a third (34.4%) of policy holders are ‘very satisfied’ with their insurance company but Shannons (54.1% ‘very satisfied’) and RACT (53.3%) rate well above average. The lowest proportions of very satisfied policy holders are with Comminsure (28.4%) and Budget Direct (30.4%).
Although most policy holders intend to renew with their current insurer, they are not all certain that they will do so when the time comes. A third (30.5%) of the market is the most positive group of those who say they are ‘extremely likely to renew’ and are much more likely to be ‘very satisfied’ with their insurance company.
“Although overall satisfaction with these insurance companies is high at 82.1%, only 34.4% of policy holders are ‘very satisfied’. Increasing this will raise the proportion of policy holders who are likely to renew without shopping around” states Morris.