Research by DBM Consultants using Consumer ATLAS data reveals that half (48%) of the 9 million Australians holding both a home and motor insurance policy miss out on multi-policy discounts by failing to bundle these products with the same insurer.
NRMA has the most brand loyal customers, with 65% of their customers holding both a home and motor insurance policy with them. Following NRMA is APIA and motoring clubs RACV, RAA and RACQ who all enjoy the highest customer advocacy levels in the insurance industry
The five worst performing insurers are Woolworths, QBE, Budget Direct, Allianz and CGU, with fewer than 1 in 3 of their customers choosing to bundle home and motor insurance policies with them.
DBM’s Dhruba Gupta, commented “these results highlight a sizeable opportunity for each insurer to capitalise on current opportunities within their own customer base and entice them to bundle their products with compelling value laden offers. The challenge for these insurers is in first identifying which of their customers actually hold a second policy with another insurer. This blind spot could be problematic for all insurers treading a fine line between trying to communicate directly with their existing customers and becoming a nuisance”.
Age and loyalty are intrinsically connected with 18-39 year olds – the least likely to bundle their home and motor insurance policies compared with the 60+ age group.
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Simon Pomfret Client Director
DBM is the leading provider of insights based consultancy to the Australian Financial Services industry. DBM’s Consumer Atlas, based on 65,000 interviews per annum, is the most comprehensive source of information on the banking, insurance and wealth management behaviour of Australians. DBM’s Consumer Atlas complements the DBM Business and Financial Services monitor utilised by Australia’s largest financial institutions to better understand the needs of the business market.
Note about data
Motor insurance excludes CTP insurance. The ‘market average’ is based on the top 15 general insurers which offer both home and motor insurance products, excluding insurance provided directly the ‘Big 4’ banks.