Over nine million general insurance policies at risk of being switched – CGU and RACV top for loyalty

Original article by Roy Morgan
Market Research Update – Page: Online : 20-May-19

A new report from Roy Morgan, ‘General Insurance Industry Market Overview Currency Report’, shows that during the last 12 months, 9.4 million general insurance policies (19.1%) were subject to review. This was made up of the policies that were switched to another company and those that were renewed with the same company after approaching other companies. The report shows that over the last year, 78.4% of general insurance policies were renewed with the same company without approaching any other companies. This was an increase from the previous year when it was 77.5% and currently represents 38.3 million policies. The most loyal customers, based on the proportion of policies that are renewed without the holder approaching another company, are with CGU (85.8%) and the RACV (83.5%). The least loyal customers among the majors are with YOUI (only 70.6% renewed without looking around), AAMI (73.3%) and GIO (73.7%). Roy Morgan’s ‘General Insurance Currency Report’ is derived from Roy Morgan’s Single Source Survey (Australia) which is based on in-depth personal interviews conducted face-to-face with over 50,000 Australians per annum in their homes, including details of over 120,000 general insurance policies.

CORPORATES
ROY MORGAN LIMITED, CGU INSURANCE AUSTRALIA LIMITED, RACV INSURANCE, YOUI PTY LTD, AUSTRALIAN ASSOCIATED MOTOR INSURERS LIMITED, GIO AUSTRALIA LIMITED

Over 600,000 pet owners have pet insurance

Original article by Roy Morgan
Market Research Update – Page: Online : 12-Jun-18

A Roy Morgan Single Source survey shows that an estimated 609,000 Australians aged 14+ had pet insurance in the year to March 2018. However, only 7.1% of the 5.4 million Australians who own a dog have pet insurance, while only 3.8% of an estimated 3.4 million cat owners have pet insurance. Employed people account for 77.4% of those holding pet insurance, well above their population proportion (57.5%). Individuals with annual income of $50,000 or more account for 56.4% of those with pet insurance, but only represents 35.5% of the population. Life stage also has an impact on pet insurance, as shown by the fact that 46.7% with this insurance are paying off their house, well above the population average of 31.0%.

CORPORATES
ROY MORGAN LIMITED

Millennials and Gen Z greatest growth potential for general insurance

Original article by Roy Morgan
Market Research Update – Page: Online : 17-May-18

A Roy Morgan Single Source survey has found that 40.9% of Generation Z and 79.9% of Millennials had any type of general insurance in the year to March 2018. This compares with Baby Boomers (93.0%), Pre-Boomers (91.3%) and Gen X (90.6%). These older age groups are close to saturation with general insurance, leaving the major future growth potential with Millennials and Gen Z. The survey also shows that Gen X currently accounts for 29.5% of the value of the annual domestic general insurance premium market, followed by Baby Boomers with 28.1%. These two generations combined account for 57.6% of the current total estimated annual premium value of $23.3b for this market. Although Millennials account for 23.1% of the total premium value, their general insurance penetration of only 79.9% leaves a large market opportunity as their needs grow over the next decade. Gen Z currently accounts for only 7.4% of market value but with an overall general insurance penetration of only 40.9% there is a great growth opportunity in coming years.

CORPORATES
ROY MORGAN LIMITED

CGU, RACV and CBA have most loyal general insurance customers

Original article by Roy Morgan
Market Research Update – Page: Online : 1-May-18

A Roy Morgan Single Source survey shows that 77.5% of Australians aged +14 with general insurance do not approach any other company when renewing their policy. An additional 14.8% approach another company but do not change their policy. The survey, which was carried out in the year to March 2018, also shows that the most loyal customers, based on the proportion of policy holders that renew without approaching another company, are with CGU (85.0%), RACV (82.8%) and CBA (82.6%). The least loyal are GIO (69.0%) and AAMI (72.7%).

CORPORATES
ROY MORGAN LIMITED, CGU INSURANCE AUSTRALIA LIMITED, RACV INSURANCE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, GIO AUSTRALIA LIMITED, AUSTRALIAN ASSOCIATED MOTOR INSURERS LIMITED, RACQ INSURANCE LIMITED, SUNCORP GROUP LIMITED – ASX SUN

AustralianSuper, Hostplus blast rivals’ premium hikes

Original article by Michael Roddan
The Australian – Page: 18 : 23-Dec-16

Premiums for insurance policies arranged through superanuation funds are rising too fast. Rice Warner reports that the cost of death and total and permanent disability cover has risen 215 per cent on average since the beginning of 2013. IOOF wealth management manager Renato Mota says the rises were necessary because the rates were "unsustainably low".

CORPORATES
RICE WARNER ACTUARIES PTY LTD, IOOF HOLDINGS LIMITED – ASX IFL, AUSTRALIANSUPER PTY LTD, HOST-PLUS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMINSURE, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Insurance jobs under threat from technology

Original article by Ruth Liew
The Australian Financial Review – Page: 25 : 8-Dec-15

Suncorp Group executive Darren O’Connell notes that the growing use of automation in the insurance sector has resulted in the elimination of entry-level jobs in the underwriting industry. He says this will result in a dearth of underwriters with expertise across the industry as older staff retire and their skills and knowledge are lost. O’Connell argues in a research paper that technology can never completely replace people in the underwriting industry, and insurers should reconsider their recruitment procedures.

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, SWISS RE AUSTRALIA LIMITED, IBM CORPORATION