“Comparethemarket.com.au (CTM) welcomes the findings of the Senate Economics References Committee’s inquiry into Australia’s general insurance industry. In particular, the Committee’s recommendation to require insurers to disclose the previous year’s premium on insurance renewal notices, and when requested, to explain to customers why their premium has increased. We believe in the merits of providing consumers with the information they need to empower them to make confident purchasing decisions. The inclusion of last year’s premium on renewal notices will enable consumers to calculate more easily how much extra they will be paying, and if the reasoning behind the increase isn’t satisfactory, then it will act as a prompt to encourage consumers to shop around for a better value product.
“Comparison services enable consumers to compare the price and benefits of a range of competing products side-by-side. This allows consumers to achieve in a matter of minutes, what would otherwise take hours if they were to visit insurance websites individually. Given the time-consuming nature of completing numerous question sets in order to receive quotes, consumers are ‘sapped of the will to compare’ (as neatly captured by the title of the Committee’s report). Without the support of comparison services, consumers are much less likely to find and switch to a policy that better meets their needs.
“The major general insurers’ continuous refusal to participate in comparison services denies consumers a quick and easy way to compare to see if there is a better product available. It also stifles competition, as insurers face less pressure to improve their pricing, product features and customer service if there is not an easy way to compare them directly to their peers.
“Our belief in the consumer benefits of comparison encouraged us to lend our support to a government-led general insurance comparison tool. We support the Committee’s recommendation for the government to complete a detailed proposal of such tool and offer our advice during this process.”
Abigail Koch, spokesperson, comparethemarket.com.au
Comparethemarket.com.au is an online comparison service that takes the hard work out of shopping around. We help Australians to quickly and easily compare and buy products from a wide range of providers. Our easy-to-use comparison tool enables consumers to find a product that best suits their needs and their back pocket. We’re also in the business of comparing personal finance products, utilities and can help find the lowest fuel prices in your area. Whether it’s car, health or home & contents insurance, we provide a completely free service, that empowers Australians to make buying decisions with greater trust, knowledge and savings. We’ve got your back, simples.