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

D&O premium pool ‘must treble’ to return to profitability

A new report – called "Show Me The Money!" by insurer XL Catlin and law firm Wotton + Kearney – is the second in a series of three white papers on securities class actions and their impact on the Directors & Officers Liability (D&O) market. The main conclusion is that Directors’ and officers’ (D&O) insurance premiums are under-priced significantly and need to rise strongly to restore profitability. The main risk areas are those exposed to securities class actions, 

It says Directors & Officer's Side A, Side B and Side C cover has been chronically underpriced since at least 2011, while the frequency of class actions is increasing as more plaintiff lawyers and litigation funders enter the space.

The analysis suggests last year’s overall premium pool of about $210 million would need to increase by at least three times to establish a profitable market, if it is assumed all other factors stay unchanged.

“Recent market developments would indicate most D&O insurers are now endeavouring to restore some semblance of profitability to their portfolios after years of market losses,” the report says.

read more

75% of Cyclone Debbie claims settled

In the 6 months since Cyclone Debbie devastated Queensland and parts of northern New South Wales:

• more than 31,000 homes and business have been repaired or received settlements from their insurance company

• more than 20,000 families have had possessions replaced

• more than 4,500 motor vehicles have been repaired or new vehicles provided

• hundreds of local builders and trades have been working on properties to repair the damage and destruction caused by the cyclone

• over $5 million has been paid EACH DAY to assist local communities, residents and businesses.

read more