AIA stands out for consumer satisfaction

AIA Australia saw customer satisfaction increase in 2017

11-Dec-2017

By Sarah Kendell

Email Article Print Article

AIA Australia was the standout for consumer satisfaction among retail life insurers this year, with overall consumer satisfaction in life insurance declining slightly over the past 12 months, according to new research from Roy Morgan.

The research firm surveyed more than 18,000 risk and life policyholders about their opinions of their insurers and found that overall satisfaction with insurers had declined from 67.5 per cent in the year to October 2016 to 66.2 per cent in the year to October 2017.

While a number of major retail insurers including Zurich, CommInsure and OnePath experienced significant declines in satisfaction over the course of the year, AIA Australia saw its consumer satisfaction rating increase by 6.6 per cent to 73.2 per cent.

AIA chief retail insurance officer Pina Sciarrone told financialobserver the result reflected the work the insurer put into relationships with its clients and business partners.

“At AIA Australia our purpose is to make a difference in people’s lives and to support them in living longer, happier, healthier lives,” she said.

“We do this by working closely with our partners and putting clients’ interests at the heart of everything we do.”

AMP and MLC - the two largest life insurers overall - saw smaller declines in customer satisfaction year-on-year, with AMP recording a 65.1 per cent satisfaction rate while MLC rated 66.9 per cent in satisfaction.

Roy Morgan industry communications director Norman Morris said the results indicated that independent insurers were leading the way when it came to customer service.

“It is generally the smaller players in the market that have the highest satisfaction, with none of the majors being among the top five for customer satisfaction,” he said.

Morris also highlighted how important it was for insurers to secure a good customer satisfaction rating in order to reduce policy lapses, with the survey results revealing customers who were more satisfied with their policy were less likely to consider changing policies.

Policyholders who said they were ‘very likely’ to renew with their current insurer had an average 74 per cent satisfaction rating with their policy, while just 30 per cent of those who said they were unlikely to renew were satisfied with their current insurer.

“Although around 80 per cent of risk and life insurance policies are renewed automatically without shopping around, there is a risk associated with having below average satisfaction as this has the potential to discourage renewal and new clients,” he said.

“The link between satisfaction and likely renewal levels has been shown to be very positive and as such it has the real potential to increase long term profitability through its impact on customer retention and acquisition.”

« Back to Articles