Brand loyalty a double edged sword to the ANZ insurance industry

  • Our latest whitepaper highlights the impending threat of emerging convenient competition and cautions existing insurance providers of complacency
  • Almost 90% of ANZ consumers will only consider between one and three insurers when choosing their next policy, while nearly 80% say they like and trust their current provider.

Results uncovered by Target Group in their latest whitepaper; Myth v Reality, the expectation gap in the ANZ insurance industry, provides tangible evidence of strong brand loyalty. But brand loyalty, Target says, is a ‘double edged sword’: when you already have a large market share as insurers have potentially much more to lose.

The whitepaper highlighted the challenges insurers face to retain business in the face of value-driven policies and more convenient competition, convincing the next generation of insurance customers that they are best placed to meet their needs. In order to continue to meet customer needs, insurers must embrace new models of technology and make them work for them. A strong social media presence, a comprehensive web experience, telephony, as well as any device – a true omni-channel offering combined with an innovative range of value added policies will help give them the edge over the emerging competition.

Four in ten (40%) of 25-34 year olds in Australia expressed a willingness to buy insurance from a social media platform, while over half (58%) of 18-24 year olds spoke with someone in a call centre, suggesting they want a fully integrated experience.

Seven in ten (70%) of respondents in New Zealand used their computers to visit an insurers website, while a further 52% spoke to someone in a call centre regarding their purchase, indicating that consumers want a fully integrated service.

If insurers can match new entrants in terms of usability, cost and cover, they are likely to stay at the top of the industry for a long time to come. The ANZ market is in a fortunate position at the moment, however, it should learn from what has happened in other markets and realise that change is inevitable. In order to meet increasing customer expectations, insurers have to embrace disruption, introduce innovative new product offerings, and simplify the end-to-end customer experience. In such a competitive industry, no one can afford to stand still Richard Holling, Insurance Director

Holling concludes:

“The overwhelming support for major high street and technology brands, such as Apple, Amazon and Google, threatens to rival the market leading position traditionally enjoyed by ANZ insurers. Even though they are not closely associated with the insurance industry, their familiarity has laid the groundwork for a future foray into this field. Insurers need to embrace new technology platforms and offer customers the same reassurance and ease of use that they have come to expect from sites such as Amazon. They need to be prepared to take the initiative and disrupt themselves or new entrants will happily do it for them.”