INSURANCE COMPANIES – AUSTRALIA

Satisfaction with private health insurers continues decline

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Original article by Roy Morgan
Market Research Update – Page: Online : 11-Dec-17

A Roy Morgan Single Source survey has found that satisfaction with Australia’s private health insurers declined to 71.0% in October 2017, down by 0.2% points for the month and 3.4% points below the same time in 2016. This level is now well down on the peak of 76.4% recorded in June 2015 and is the lowest satisfaction rating since 2010. The top fund was Teachers Health with 83.4% satisfaction, followed by TUH Health Fund (82.8%), Defence Health (82.8%), CBHS (82.1%) and Health Partners (80.9%). The only funds to show improvements in satisfaction over the last 12 months were TUH Health Fund (up 3.7% points) and Australian Unity (up 2.1% points). Less than half the members of the major health funds would be "highly likely" (with a score of 8 to 10 on a ten point scale) to recommend their fund to friends or colleagues.

CORPORATES
ROY MORGAN LIMITED, TEACHERS HEALTH FUND, TUH HEALTH FUND, DEFENCE HEALTH LIMITED, CBHS FRIENDLY SOCIETY LIMITED, HEALTH PARTNERS, AUSTRALIAN UNITY HEALTH LIMITED, MEDIBANK PRIVATE LIMITED – ASX MPL, BUPA AUSTRALIA PTY LTD, THE HOSPITAL CONTRIBUTIONS FUND OF AUSTRALIA LIMITED

$40bn yearly disaster toll tipped

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Original article by Michael Roddan
The Australian – Page: 21 : 21-Nov-17

The Australian Business Roundtable has urged the federal government to spend more on mitigation and resilience when it comes to managing the impact of natural disasters. The Roundtable, whose members include Munich Re and Insurance Australia Group, argue that too much of the current focus of government spending when it comes to natural disasters is on recovery, and it believes this needs to change. Its research suggests that the cost of cleaning up after natural disasters could increase to nearly $A40 billion per annum by 2050, a figure that does not take into account the impact of climate change.

CORPORATES
MUNICH REINSURANCE COMPANY OF AUSTRALASIA LIMITED, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, WESTPAC BANKING CORPORATION – ASX WBC, QBE INSURANCE GROUP LIMITED – ASX QBE, AUSTRALIA. PRODUCTIVITY COMMISSION, THE INSTITUTE OF ACTUARIES OF AUSTRALIA

QBE makes first insurtech play

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Original article by Alice Uribe
The Australian Financial Review – Page: 20 : 27-Oct-17

QBE Insurance Group has invested in US artificial intelligence firm RiskGenius, with QBE executive Bob James saying it will help the insurer to develop new products more rapidly. The investment in RiskGenius is the first to be made via QBE’s $US50 million ($A64.85 million) "insurtech" fund. QBE CEO John Neal said at the time of the fund’s launch in March that its investments would focus on data analytics.

CORPORATES
QBE INSURANCE GROUP LIMITED – ASX QBE, RISKGENIUS, CB INSIGHTS

Medibank fails to satisfy members

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 24-Oct-17

Morgan Stanley’s latest survey of customer attitudes to health insurance policies has found that 48 per cent were likely to consider changing insurers over the next 12 months, up from 41 per cent. Medibank Private had the lowest percentage of customers who would recommend it to a friend, while 50 per cent of Medibank Private customers indicated they would be likely to "shop around" over the next year, up from 40 per cent.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, MEDIBANK PRIVATE LIMITED – ASX MPL, AHM HEALTH INSURANCE, QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIAN ASSOCIATED MOTOR INSURERS LIMITED, SUNCORP GROUP LIMITED – ASX SUN, NIB HEALTH FUNDS LIMITED, HBF HEALTHFUNDS INCORPORATED, THE HOSPITAL CONTRIBUTIONS FUND OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF HEALTH

Rise in insurer requests for full medical records

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 16-Oct-17

The federal parliamentary joint committee on corporations and financial services is investigating the $A44 billion life insurance sector. The Royal Australian College of General Practitioners has told the committee that its members are receiving increased requests for full patient records, while it believes strongly that such requests should not be allowed. MDA National believes that patients should be informed if an insurance company has made a request to access their records.

CORPORATES
AUSTRALIA. JOINT COMMITTEE ON CORPORATIONS AND FINANCIAL SERVICES, THE ROYAL AUSTRALIAN COLLEGE OF GENERAL PRACTITIONERS, MDA NATIONAL PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN LABOR PARTY, AIA AUSTRALIA LIMITED

Questions over QBE’s plan for $1b buyback

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Original article by Alice Uribe
The Australian Financial Review – Page: 19 : 4-Oct-17

QBE Insurance Group has increased its provision for natural disaster claims in 2017 to $US1.75bn ($A2.24bn), in the wake of a series of such events in Australia and abroad. The insurer has advised that this will reduce its pre-tax earnings by about $US600m. David Ellis of Morningstar and David Spotswood of Shaw & Partners suggest that QBE may have to put its share buyback on hold. QBE recently advised that it has repurchased about 5.5 per cent of its stock to date.

CORPORATES
QBE INSURANCE GROUP LIMITED – ASX QBE, MORNINGSTAR PTY LTD, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, FITCH RATINGS LIMITED, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SUNCORP GROUP LIMITED – ASX SUN, FLORIDA CITIZENS PROPERTY INSURANCE CORPORATION, CITIGROUP PTY LTD, S&P GLOBAL RATINGS

QBE chief out as investors revolt

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Original article by Michael Roddan
The Australian – Page: 19 & 22 : 13-Sep-17

QBE Insurance Group has advised that Pat Regan will succeed CEO John Neal in January 2018. Neal’s resignation after five years in the role follows a 25 per cent fall in the general insurer’s share price since it revealed another earnings downgrade in June. QBE has announced a total of eight such downgrades since he took the helm. Shares in QBE closed 2.5 per cent higher at $A10.50 on 12 September.

CORPORATES
QBE INSURANCE GROUP LIMITED – ASX QBE, VELOCITY TRADE LIMITED, INSURANCE COUNCIL OF AUSTRALIA LIMITED, AVIVA PLC

Most general insurance policy holders renew without approaching other companies

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 11-Sep-17

A Roy Morgan Single Source survey has found that 77.9% of Australians aged 14+ with general insurance do not approach any other company when renewing their policy. An additional 14.6% approach another company but do not change. Roy Morgan’s "General Insurance Industry Currency Report" also shows that the proportion of general insurance policy holders renewing with the same company after approaching others has increased from 11.4% in the year to July 2013 to 14.6% in the year to July 2017. The most loyal customers, based on the proportion of policy holders 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%).

CORPORATES
ROY MORGAN RESEARCH LIMITED, RACQ INSURANCE LIMITED, RACV INSURANCE, RAC INSURANCE PTY LTD, BUDGET DIRECT INSURANCE AGENCY PTY LTD, GIO AUSTRALIA LIMITED

O’Dwyer lashes out at ‘tricky’ insurers

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Original article by Andrew White
The Australian – Page: 21 : 27-Jul-17

Financial Services Minister Kelly O’Dwyer has criticised the way life insurance providers have handled requests by superannuation fund members to opt out of life and disability coverage via their super fund. O’Dwyer says life insurers have been "tricky" regarding the issue of opting out. She also argues that life insurers must demonstrate that the products they offer have value to super fund members, and notes that such coverage may not necessarily be relevant to people under the age of 25.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, FINANCIAL SERVICES COUNCIL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AMP LIMITED – ASX AMP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MACQUARIE GROUP LIMITED – ASX MQG, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Satisfaction with risk and life insurance remains the lowest of all major insurance types

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 21-Feb-17

A Roy Morgan Single Source survey has found that satisfaction among Australians aged 14+ who are risk and life insurance policy holders was 67.4% in the year to December 2016, down from 68.8% in 2015. Less than one in four (23.9%) of risk and life policy holders were "very satisfied" with their insurance company. The survey also shows that satisfaction with risk insurance (covering income protection, disability, accident, trauma, etc) in 2016 was only 66.3%, the lowest of all insurance types and a little below the 68.7% for life insurance. Meanwhile, Allianz leads in customer satisfaction among the 13 largest risk and life insurers (75.7%), followed by Insuranceline (75.2%) and Asteron (74.4%).

CORPORATES
ROY MORGAN RESEARCH LIMITED, ALLIANZ AUSTRALIA LIMITED, INSURANCELINE HOLDINGS PTY LTD, ASTERON PTY LTD