News

Have someone do the shopping for you

News >>


More Australians are looking to shop around for a new insurance provider rather than simply renew their existing cover.
The majority of household Insurance policies are automatically renewed without approaching other insurers. However, there is an increasing trend to shop around prior to policy renewal, according to the latest findings from Roy Morgan Research’s General Insurance Industry Report.
In the 12 months to August 2012, 14% of households approached another company prior to renewal compared to 10% in 2008.

However, this increased trend to compare price before renewal is an indication that policy holders are increasingly price sensitive and as a result, some are deciding not to insure. More than half of all policy holders that shop around before renewing do so because of price.
The report, based on personal interviews with over 9,000 household insurance customers each year, also found home owners of all levels of income have turned their backs on household insurance during 2012 and created a deepening underinsurance problem.
One problem is, cheaper covers can be found but the cover can be greatly reduced. However, something is better than nothing. The proportion of Australian home owners holding a household insurance policy has declined from 92.2% in 2008 to 90.1% in 2012,
The adoption of household insurance is largely dependent on income, with the lowest being the under $15,000 pa households (83.9%) and the highest is the $100,000+ pa group with 93.7%. However, the decline in household insurance is across all household income groups.
Rising premiums and natural disasters including floods in particular have received publicity regarding the extent of coverage and the definitions used by the industry but price still remains the most important consideration.
Having an increasing trend for people to shop around at renewal time is a positive one providing consumers are aware of any change in terms and conditions. Our concern is that they do not.
You do get what you pay for. Balance price with the cover you need.


 

Last changed: Nov 26 2012 at 9:52 PM

Comments

  1. None Found

Add Comment

Latest News

Will you lose the value of a Broker?

If you listen to the Podcast on this link you will here Robert Cooper explain to his Accountant why Small Business stands to lose if Insurance Brokers are not there to advise start up businesses and established businesses about the risks their occupation carries and how they can deal with them. Simply because they will not want to pay the fees that would be charged. Currently instead, Insurance Companies pay the Broker after the Insurance has been placed with them. Perhaps the premiums will appear a bit cheaper in the first year? Then they will question the fees an Insurance Broker puts on top and finds they can go to the Internet and obtain the same cover at the same price. However, they will not have the constant advice and claims advocacy that comes with an Insurance Broker. The big loser is definitely the Consumer as direct insurers give absolutely no advice, only price.

read more

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

read more