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Satisfaction equals loyalty Nearly 78% of Australians stayed with the same general insurer when their policies were last due for renewal, up slightly from 79.9% in 2013, according to a Roy Morgan Research survey. About 4.6% opted for a change, compared with 5.8% four years ago. The researcher says it indicates customers are satisfied with their present insurers. “It is worth noting that satisfaction with general insurance is closely associated with higher levels of loyalty, as shown by the fact the top performers for loyalty also have well above average satisfaction levels,” Industry Communications Director Norman Morris said. “Retaining customers is therefore likely to be affected by more than price, but also by the many other factors that drive improvements in satisfaction.” RACQ Insurance has the most loyal clients, with 85.2% renewing without checking out other insurers, followed by RACV (84.1%) and RAC WA (83.8%). Suncorp Insurance is fourth with 82.9%, followed by sister brand Apia (80.3%), IAG-owned NRMA Insurance (79.1%), Suncorp’s AAMI (74.8%), Allianz (74%), Youi (70.6%) and QBE (70.4%). Budget Direct is last of the 12 insurers surveyed on 63.3%, with GIO one place above it at 67.2%. Customer loyalty growing, survey shows, 11 September

QBE’s John Neal calls it a day QBE Group Chief Executive John Neal (above left) will step down at the end of December after five years in the top role. The company says Pat Regan (above right), currently Australian and New Zealand Chief Executive, will take over from Mr Neal on January 1 after a four-month leadership transition. Mr Neal began with the company in QBE’s European Operations in 2003 and moved to Sydney in 2011 as chief executive global underwriting operations. “John has led the business through a significant transformation and a challenging period in the insurance industry globally and has been working closely with the board to ensure a smooth transition for his succession,” Chairman Marty Becker said. Mr Regan joined QBE in 2014 and was group chief financial officer before heading the Australian and New Zealand business. “In the last 12 months Pat has led a strong turnaround in the Australian & New Zealand operations highlighting his operational skills and business acumen, and in his previous role had been pivotal in stabilising the balance sheet and enhancing the group’s capital management,” Mr Becker said. QBE’s John Neal to step down, Breaking News, 12 September

Bad bushfire summer ahead Most of the east coast of Australia faces above-normal bushfire risk this summer, according to the Bushfire and Natural Hazards Co-operative Research Centre southern outlook. Below-average winter rainfall has added to long-term drying trends, leading to a marked increase in fire weather severity. “The combination of short and long-term rainfall deficits serves to increase the fire risk in the coming spring and summer seasons,” the report says. Large areas experienced the hottest June-August daytime temperatures on record, which exacerbated the drying of vegetation. The report says New South Wales has above-normal fire potential for eastern forested areas, while grassland areas have normal potential due to reduced fuel loads. Southeast Queensland could suffer due to high winter temperatures, while Victoria and Tasmania could see an early start to the fire season. ACT bushfire potential is above normal due to dry vegetation, with large parts of South Australia similarly affected. The centre’s outlook for northern Australia, released in July, showed increased risk in some parts of Queensland due to damage caused by Cyclone Debbie. In northern Western Australia, above-normal fire potential is reported in parts of the Ord Victoria Plain and Dampierland regions of the Kimberley. The southern half of the Pilbara and central parts of the Gascoyne region also face above-normal fire potential. Experts fear severe bushfire season, 11 September

insuranceNEWS

October/November 2017

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Profile for Insurance News (the magazine)

OCT/NOV 2017 - Insurance News (the magazine)  

As the pace of change in the Australian insurance industry accelerates, IAG is making some big, bold and swift steps to build a new kind of...

OCT/NOV 2017 - Insurance News (the magazine)  

As the pace of change in the Australian insurance industry accelerates, IAG is making some big, bold and swift steps to build a new kind of...