Low cost insurance provider Budget Direct says latest research which shows the impact of competition on premium levels is a victory for insurance customers in Australia.
The 2013 General Insurance Barometer by JP Morgan and Taylor Fry reports home and contents premiums would increase by single digits this year, compared to double-digit increases in the past two years, while motor premiums were expected to be flat.
Budget Direct which sold its first policy in Australia in 2000, has long marketed itself as an alternative for customers who want greater choice and better value. As a result, the company’s market share continues to climb, with the greatest increase in recent years being in the home and contents insurance area.
If any further evidence was needed that Australians are desperate to save money on their insurance and are prepared to shop around, Budget Direct’s January results speak for themselves. The company has led an aggressive online discount campaign this year, resulting in its biggest sales month on record. This is surely going to cause pain to the big two insurers, Suncorp and IAG, says Budget Direct’s Director of Marketing Jonathan Kerr.
“We’ve spent years hammering away at premium prices and this report shows it’s paying off for Australian customers,” says Mr Kerr.
“Competition is the foundation of healthy industry. Premium increases cannot be out of the reach of average Australians, to the point they abandon insurance.
“We believe the big players have had it all their way for too long, to see the impact customers are having by exercising their power and shopping around, is a win we believe for the insurance industry in Australia.”
Due to the success of the campaign Budget Direct is extending its online offer of 20% off car insurance and 35% off home and contents insurance until the end of March.