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Customers stay loyal despite pricing concern | Insurance News

The vast majority of general insurance customers do not bother checking alternatives at renewal time, according to Roy Morgan research.

This is despite “better premiums” being the main reason for switching or shopping around.

Local insurers dispute assertions by consumer groups here and in the UK that loyal customers are often charged significantly more than new customers, despite the fact that more is spent on acquisition than retention.

However, Roy Morgan surveyed 50,000 Australians who carry more than 120,000 general insurance policies to establish that, in the past year, 77.4% of policies were renewed with the same insurer without any other companies being approached for quotes.

This is down marginally from 79.3% five years ago, but the researcher says it represents “only a gradual change in buyer behaviour in this highly competitive market”.

Almost 20% of the more than 120,000 policies were subject to review, but even then most customers decided to stick with their current insurer.

Read complete article here:

Customers stay loyal despite pricing concern – Local – Insurance News – insuranceNEWS.com.au.

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