Examining the performance of the fastest growing new brands in the general insurance market (Bingle, Budget Direct, Coles, Real and Youi) reveals the impact these providers are having on the market leaders.
Examination of the performance of five of the fastest growing new brands in the general insurance market (Bingle, Budget Direct, Coles, Real and Youi) reveals the impact these providers are having on the market leaders. These are the latest findings from the Roy Morgan Research Consumer Finance Survey of over 50,000 interviews per annum.
Although the majority of policies taken out for the first time or switched between providers are held with the major players, the new brands are rapidly growing their presence and subsequent customer base. Collectively the brands examined here, including Bingle, Budget Direct, Coles, Real and Youi, represent 4% of the general insurance market in terms of the overall number of policies.
Examination of their growth over a 12-month period shows these providers are capturing 7% of all new general insurance policies and 15% of all policies switched from other providers.
Further examination reveals that this growth comes at the expense of a range of major players including AAMI, GIO, NRMA and Allianz; the chart below illustrates sources of total policy growth for these challengers over a 12-month period.
Source:Roy Morgan Single Source (Australia), 12 months to March 2013, sample size = 955.
Base: Australians 14+ General Insurance customers who have taken out a new policy with (or switched an existing policy to) Bingle, Budget Direct, Coles, Real or Youi in the last 12 months.
Norman Morris, Industry Communications Director, Roy Morgan Research, says:
“Traditionally the general insurance market has been dominated by four players — Suncorp, Insurance Australia Group, QBE and Allianz. Over recent years, the online channel is stirring up competition in the general insurance market, as online brands look for ways to drive down costs to enable more attractive pricing options. These challenger brands are growing at a faster rate than the rest of the general insurance sector. With the ease of online comparison between providers, major players concerned with retention need to focus on the additional value they provide to justify the price premium they charge.”
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