More insureds prepared to switch for satisfaction

More insureds prepared to switch for satisfaction | Insurance Business

More insureds prepared to switch for satisfaction
The number of customers switching their car insurance provider has increased on last year with Aucklanders four times as likely to switch compared to those from other regions, according to a Canstar Blue survey.

Derek Bonnar, general manager Canstar New Zealand, said: “This is the third year of our survey, and while most have remained with their current provider, 15% have moved their business, up from 10% the year before.

“Value for money (35%) is the biggest driver of satisfaction, followed by quality of service (23%) and clarity of policy (23%).”

He added: “The car insurance market is competitive, and Auckland exceptionally so. A quarter of respondents reduced their cover in order to manage premiums, with Aucklanders (38%) leading the charge towards lower cost cover.”

Respondents were asked to rank their car insurance provider across seven categories:
  1. Value for money
  2. Claims process
  3. Speed of response
  4. Quality of service
  5. Clarity of policy
  6. Communication
  7. Overall satisfaction (a separate category, not an aggregation)
Taking out the Canstar Blue award in 2015 for overall customer satisfaction was AA Insurance, for the third consecutive year.

Bonnar said: “AA Insurance has achieved a three-peat, topping the overall satisfaction award for three surveys in a row. That’s quite an achievement in a highly competitive market where there is a high level of performance.”

AA Insurance CEO Chris Curtin said the result was a great way to kickstart 2015.

“What makes this award extra special is that not only were we voted for by our customers, we were also chosen from a field of high performing companies. So for us, receiving this award is a huge honour.”

Three IAG companies – AMI Insurance, NZI and State – took second, third and fourth place with Vero, Westpac, ASB and Tower following behind.

The nationwide survey also found that 86% of people supported the view that if you can’t afford insurance then your vehicle should not be on the road.

Bonnar said: “Gen Ys were least likely to agree (65%) compared to Gen Xs and baby boomers. Perhaps that’s because Gen Ys are more likely to be cash strapped compared to older New Zealanders.”

Again, Gen Ys along with Gen Xs and 38% of Aucklanders said they regularly leave valuable items in their car while just 13% of baby boomers did so.
Analysis of claims showed the majority were for accidents (66%) with most being for windows/windscreens.

The most unusual claims shared in the survey were for flood damage, damaged caused by animals (eg lamb ran into car) and a hit and run at the cemetery.