Which Insurance type has the LEAST happy customers?
According to new research, Life & Risk Insurance customers are the least satisfied of the lot and are less satisfied than they were a year ago.
In the year to December 2016 satisfaction with life insurance dropped down to 68.7%, the second lowest of all other major insurance types.
The average satisfaction levels of Life & Risk Insurance customers in the past year were just 67.4%, compared to comprehensive car insurance (82.6%), household building insurance (79.9%), and Private Health Insurance (73.6%).
According to the latest findings from Roy Morgan’s Single Source survey of over 50,000 consumers in a year, less than one in four (23.9%) risk and life policyholders were ‘very satisfied’ with their insurance company.
But why?
Risk and life insurance continues to suffer from negative publicity, especially after recent reports by ASIC and a senate inquiry revealing poor practices in the industry. This negative publicity, coupled with the high cost of insurance, means many Australians are looking to compare and switch providers.
Although private health insurance has copped a lot of criticism regarding the premium increases, it still had a satisfaction level higher than risk and life insurance.
Roy Morgan data revealed that the channel used to purchase insurance impacts satisfaction levels. Risk advisers will be particularly concerned as consumers are most happy to purchase insurance when they go directly via a branch, telephone or over the internet.
Life insurance is not the most compelling topic, but if you have dependents, a business or significant debts it is something we should be thinking and talking about.
Mark Bouris, executive chairman of Yellow Brick Road advises treating your income as though it were a household asset, and one whose absence will be felt if it ceased to exist.
Almost all risk and life insurance customers (96.8%) said they were “fairly likely” to renew their existing insurance policy, although one third (35.3%) were “extremely likely” to renew.
A parliamentary inquiry set up to examine the industry released its initial findings this week that showed elements of the“worst culture and behaviour" of the industry, according to law firm Maurice Blackburn.
The hearing will continue in Sydney on Friday. Hopefully the end result ill be improved consumer confidence in the sector.
Australians pay in excess of $44 billion annually to life insurance companies. Half of these payments are paid from superannuation accounts, according to Industry Super Australia.
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