Rising climate and health risks spurs surge in Australian consumers’ appetite for insurance cover

Key points

• 45% of Australian consumers say general and health insurance are both more important now than before the pandemic.
• Reputable brands (42%) and low premiums (37%) are rated as the top selection criteria when choosing a general insurance provider.
• Insurers must innovate to retain and attract new customers, with 80% of policyholders open to switching their general insurance provider in the future.

The recent Investment Trends 2024 Consumer Insurance Needs Report – General Insurance highlights significant changes in Australian consumer attitudes, and preferences towards general insurance coverage.

The report shows that 45% of Australian consumers now consider general insurance more important than before than pandemic, resulting in a re-evaluation of general insurance needs. This has been driven by increased awareness of risks and uncertainties such as property damage (35%), financial loss (28%), and personal safety (22%).

“Disasters such as the Black Summer bushfires, floods in NSW and QLD, and more recently the devasting floods in Germany and the extreme heat waves in the Philippines, have heightened the demand for general insurance cover,” said Irene Guiamatsia, Head of Research at Investment Trends. “Australians are not just looking for basic coverage; they want policies that offer better value and more comprehensive protection to safeguard their assets and livelihoods”.

The findings reveal that when selecting a general insurance provider, Australians prioritise reputable brands (42%), low premiums (37%), and existing relationships (21%). Additionally, consumers were found to value an insurer’s ability to provide a seamless online experience and efficient claims processing. Transparency, customer service, and digital engagement were also seen as essential in meeting evolving expectations.

The results indicate a significant shift in customer behaviour with 80% of general insurance policyholders indicating they are open to switching general insurance providers in the future. For that group, premiums and rewards rank far higher on the wishlist than brand does.

“In the highly contested market of general insurance, providers cannot rely on brand alone and need to carefully build value propositions that most comprehensively address the needs of the specific client groups they wish to service,” concluded Guiamatsia.

As consumer behaviour continues to evolve, driven by both global events and local realities, the insurance industry must respond with innovative, customer-centric strategies.

The findings from the Investment Trends 2024 Consumer Insurance Needs Report – General Insurance explores in forensic detail the needs and experiences of current and prospective general insurance users, across various demographic and psychographic characteristics including but not limited to: age, wealth bracket, household income, household type, multicultural background and adviser usage.

 

 

Media Contacts
Dr Irene Guiamatsia, Head of Research Phone +61 420 319 177 Email [email protected]	Sophie O’Neill, Senior Marketing Manager Phone +61 2 8248 8000  Email [email protected]

 

 

 

 

 

 

Research Methodology:

The Investment Trends 2024 Consumer Insurance – General Report provides a detailed analysis of the Consumer General Insurance industry, examining the sentiment, attitudes and needs of Australian consumers. Based on a quantitative online survey of Australian consumers conducted by Investment Trends from December 2023 to January 2024. Total number of responses after data cleaning and validation: n=5,385.

About Investment Trends:

Investment Trends is the leading researcher in the retail online share dealing and leveraged trading markets globally. We combine our analytical rigour and strategic thinking with the most advanced research and statistical techniques to help our clients gain competitive advantage. We have over 10 years’ experience in researching the retail wealth management and global broking markets from which we provide new insights and decision-making support to over 200 leading financial service businesses globally. Investment Trends’ clients include several global banking organisations, all major online brokers and CFD providers as well as industry regulators, advice providers, fund managers, super funds, investment platform providers, and industry associations.