{"id":41848,"date":"2018-08-14T11:20:13","date_gmt":"2018-08-14T01:20:13","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=41848"},"modified":"2018-08-15T07:50:59","modified_gmt":"2018-08-14T21:50:59","slug":"advisers-rank-lowly-in-switching-decisions","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2018\/08\/14\/advisers-rank-lowly-in-switching-decisions\/","title":{"rendered":"Advice Ranks Low in Million Switching Decisions"},"content":{"rendered":"<p>More than one million life insurance policies had the potential to switch providers in the past financial year but a recommendation from an adviser was the key driver in only six per cent of switches, according to research released by <a href=\"https:\/\/www.roymorgan.com\/\" target=\"_blank\" rel=\"noopener\">Roy Morgan<\/a>.<!--more--><\/p>\n<p>The research firm found that in the 12 months to June 2018, 1,008,000 life insurance policies had the potential to switch to another life insurer with the leading reason for making a switch being the cost of the policy premium.<\/p>\n<p>According to Roy Morgan, 242,000 policies switched providers and a further 766,000 policies were renewed with the same insurer despite another insurer being considered before making the decision to renew.<\/p>\n<p>The combined figures represent 10.8 per cent of the total life insurance market and Roy Morgan found that price issues were the leading reason in more than 50 per cent of switching decisions with<\/p>\n<ul>\n<li>\u2018better price\/premium\u2019 the key reason in 42.8 per cent of switches<\/li>\n<li>\u2018renewal price higher than last year\u2019 the key reason in 9 per cent of switching decisions<\/li>\n<li>\u2018always shop around\u2019 was a key factor in 28.8 per cent of decisions<\/li>\n<\/ul>\n<p>Comparatively, professional advice featured in only 6.1 per cent of decisions but was twice as high as advice from family, friends or work colleagues (3.1 per cent).<\/p>\n<h6>&#8230;professional advice featured in only 6.1 per cent of decisions&#8230;<\/h6>\n<p>The research also found that people aged between 35 and 64 had the largest potential to switch making up nearly 78 per cent of those who could change providers.<\/p>\n<p>The 35 to 49 age group had the largest segment of potential switches with 425,000 or 42.2% of the total, and the 50 to 64 age group had 360,000 or 35.7%, with a combined total of 77.9 per cent of the switching potential.<\/p>\n<p>This distribution of potential switchers was linked to the proportion of policies they held in the overall market, according to Roy Morgan Industry Communications Director, <strong>Norman Morris<\/strong><strong>, <\/strong>who added the first group above was likely to be coping with young families and other cost pressures, including mortgages, and may not always be interested in taking out life insurance.<\/p>\n<p>\u201cThis research has shown that there is obviously considerable potential in this market for insurance companies to either gain or lose customers. This is due to the fact that in the last 12 months, one million policies were either switched to another company or were under consideration to do so,\u201d Morris said.<\/p>\n<p>The data was drawn from Roy Morgan\u2019s Single Source survey of 50,000 Australians, including interviews with 10,000 people who held life insurance policies, who switched their life insurance or approached another company about doing so in the 12 months to June 2018.<\/p>\n<figure id=\"attachment_41849\" aria-describedby=\"caption-attachment-41849\" style=\"width: 618px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/riskinfo.com.au\/news\/files\/2018\/08\/Roy-Morgan.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-41849\" src=\"https:\/\/riskinfo.com.au\/news\/files\/2018\/08\/Roy-Morgan.jpg\" alt=\"\" width=\"618\" height=\"374\" srcset=\"https:\/\/riskinfo.com.au\/news\/files\/2018\/08\/Roy-Morgan.jpg 618w, https:\/\/riskinfo.com.au\/news\/files\/2018\/08\/Roy-Morgan-300x182.jpg 300w\" sizes=\"auto, (max-width: 618px) 100vw, 618px\" \/><\/a><figcaption id=\"caption-attachment-41849\" class=\"wp-caption-text\"><strong>Major Reasons For Changing or Approaching Another Company For Risk and Life Insurance in the last 12 months.<\/strong> <em>Source: Roy Morgan<\/em><\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>More than one million life insurance policies had the potential to switch providers in the past financial year but a recommendation from an adviser was the key driver in only six per cent of switches, according to research released by Roy Morgan.<\/p>\n","protected":false},"author":3,"featured_media":41886,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,5],"tags":[4247],"class_list":{"0":"post-41848","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-products","8":"category-services","9":"tag-feature"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/41848","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=41848"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/41848\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/41886"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=41848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=41848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=41848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}