The COVID-19 crisis has led to significant changes in customer behaviour across many industries, and there is a high likelihood these changes will last well into the future.
But for many Australians, COVID-19 is just the latest in a series of crises that have experienced along with unprecedented droughts, floods, and bushfires.
Such events have dominated the news cycle for the past year, creating conditions that are disrupting people’s loyalties and behaviours, in much the same way as happens during major life events such as moving to a new house or having a baby. This disruption is prompting consumers to review their existing insurance policies and approach renewals with a different mindset.
A challenge and an opportunity for insurers
Recent research conducted by Enhanced Media Metrics Australia (emma) found the percentage of people who intend to seek a new provider almost doubled between December 2019 and June 2020, rising from 3.8 per cent of policyholders to 5.7 per cent.
Although this percentage might sound small, according to APRA data, it represents more than $430 million in premiums revenue.
For insurance brands, this behaviour change creates a challenge to ensure they don’t lose existing policyholders, but also an opportunity to win new business. In either case, the requirement is for brands to be present in the right location with the right brand message when individuals are considering whether to retain or switch providers.