Only around one third of consumers are ‘extremely likely’ to renew their life insurance despite around two-thirds indicating they were satisfied with their life insurance provider, according to data released by Roy Morgan Research.
The research, which covered more than 16,000 risk and life insurance policy holders found that while most policy holders intend to renew their insurance with their current provider many were uncertain they would actually do so when the time came.
Roy Morgan Research said only 35.3% of research respondents indicated they were ‘extremely likely to renew’ with that group also indicating they were ‘very satisfied’ with their insurance company.
Of the 13 life insurance providers included in the survey, Insuranceline had the highest proportion of customers (47.7%) saying they are ‘extremely likely’ to renew, ahead of Zurich (43.2%) and AIA Australia (41.4%).
The research group also found that overall satisfaction, for the year to October 2016, among risk and life insurance policy holders was 67.5%, a fall from 69.3% over the same period in 2015 but an increase from 66.3% three years ago. This was not consistent with all insurers with five of 13 providers recorded an increase in satisfaction levels of clients.
“All this bad press is likely to be having an adverse impact on consumer perception of this product and the providers.”
Asteron Life held the highest customer satisfaction numbers at 78.1%, up 10.6% points from a year ago, followed by Insuranceline on 73.8% and then Allianz with 73.2%, all well above the average satisfaction level.
Roy Morgan Research Industry Communications Director, Norman Morris said satisfaction with risk and life insurance still remained lower than other major types of insurance – such as motor vehicle, household and private health insurance – also measured by the research group.
He said pricing was the major reason why consumers were looking to change companies followed by recommendations from a friend or advisers, poor customer service, changed job or change in family circumstances.
“Risk and life insurance have suffered from some negative publicity lately, due to issues such as non-payment of benefits, inappropriate advice, complexity and understanding of policies linked to superannuation etc. Some providers have also indicated that losses are escalating and have sold their business or are looking to sell. All this bad press is likely to be having an adverse impact on consumer perception of this product and the providers,” Morris said.
