Insurance premium survey

The Insurance Monitor has been monitoring home and contents insurance premiums from key insurance brands on a monthly basis since October 2016. Insurers provide these quotes for 11 specific addresses, based on a standard set of specifications which includes: certain physical property attributes, property owner characteristics, and sum insured.

The survey data shows there are large variations in the premiums charged by different insurers for policies offering identical levels of cover.  It is not evident to the Insurance Monitor why insurance quotations for an identical property with identical attributes should vary so greatly in a competitive market.  The quotes strongly suggest that insurance consumers should ‘shop around’ when buying  insurance.

Standard profile information

Standard profile specifications

The following information is supplied to insurers when seeking insurance quotes.  

These standard specifications were developed having regard to the types of information that a customer is required to provide to an insurer when seeking an online insurance quotation.  

Following a review of the standard profile criteria, the Monitor issued  a new request for quotes to insurers, seeking to further standardise the quote request.  The profile of the policyholder and the home & contents details were kept largely the same as previously, however, some details that had not previously been specified were added to the list (marked* in table below).

 The Monitor requests that the quotes provided assume the policyholder does not have any other policies with the insurer, and are in line with online quotes offered.  However, whilst the Monitor requests information on a standard basis, due to the variability of individual insurers products and systems, some information may not completely match the requested criteria. 

Metropolitan residential building standard specifications

Type of cover

Building and contents (classic/standard cover)

Home address

[11 specified addresses]

Permanent residence or Rental/Holiday Home

Owner occupier

Permanent residence live with immediate family, 2 Adults and 2 children under 13

Family home only no business activity/tenancy/boarding on premises

No mortgage on the property*

Is house currently being renovated, being demolished or for sale

No

Home details

 

Year built

1990

Proximity to bushland

N.A

Description

Single story

Free standing house built on slab/foundations

Size 200 sq meters

3 bedrooms*

Average construction quality

Well maintained and in good condition

No outdoor structures or features or fittings (no pool or pool area, no deck no shed etc)

Not heritage listed

Elevation

No – flat ground

Exterior walls

Double brick

Roof

Terracotta tiles

Part of Strata plan

No

Site exceeds 20,000 sq metres

No

Someone normally home during the day

No

Flood cover

Yes*

Cover for damage caused by theft/fusion or power surges

Accidental damage or accidental glass breakage

Specified contents/Portable coverage


No

No

No*

Home security

Key operated locks and deadlocks on all external doors

Key operated locks on all accessible windows

No local/back to base smoke or burglar alarms

No bars/grills on accessible windows

Building sum Insured

Contents sum insured

$450,000

$100,000

Date of birth of oldest policy holder

1 January 1975

Previously/continuously insured

No

Claims/loss history in last 5 years

Nil

Applicant back ground

No criminal charges/conviction/bankruptcy or refusal/cancellation of insurance policy

Building Excess

$500*

Contents Excess

$500*

* New criteria added to data request information from 1 July 2018.

# Flood cover - previously flood cover was only requested in two locations: Hinton and Canowindra.  From 1 July 2018, flood cover is requested at all locations.

Companies surveyed

The Insurance Monitor requests premium quotes based on the standard profile from the following insurers.  Youi was added to the list in July 2018, otherwise, all insurers have provided information since October 2016

AAMI
Allianz
CGU
Coles
CommInsure
GIO
NRMA
OnePath (ANZ)
QBE
Suncorp
Westpac
Woolworths
Youi*

Locations surveyed

The Monitor sought premium quotes based on the standard profile information at 11 different locations throughout NSW.

The locations include inner and outer-Sydney; regional-metropolitan; Blue Mountains, regional inland, coastal and flood or storm-prone locations. Whilst the list of locations sampled is not exhaustive, it provides an indication of what can be expected throughout the State.

Suburbs included in the survey: Bradbury, Byron Bay, Canowindra, Concord, East Gosford, Hinton, Hornsby, Medlow Bath, Randwick, Riverview, and Wollongong.

Monthly standard property profile reports 

April 2019

Survey summary

  • Three insurers reduced home& contents ESL rates this month. The average ESL rate is now 12.7%.  
  • Average Base Premiums increased by $11 compared with last month and $36 compared with last year.
  • The Average Total Premium in the survey is $1,733.  This is $10 higher than last month and $66 lower than a year ago.  

Further information about the April Standard Property Profile Survey can be found in the attached report.

pdf%20icon.png Pdf size: 438KB

March 2019

Survey summary

  • The ESL rates for home & contents policies fell at ten of the 13 insurers surveyed and the average ESL rate is now 13.1%.  
  • Average Base Premiums increased by $1 compared with last month and $25 compared with last year.
  • The Average Total Premium in the survey is $1,723.  This is $22 lower than last month and $75 lower than a year ago.  

Further information about the March Standard Property Profile Survey can be found in the attached report.

pdf%20icon.png Pdf size: 612KB

February 2019

Survey summary

  • The average ESL rate for home & contents policies fell to 14.6%.  
  • Average Base Premiums increased by $2 compared with last month and $25 compared with last year.
  • The Average Total Premium in the survey is $1,744.  This is $5 lower than last month and $47 lower than a year ago.  
     

Further information about the February Standard Property Profile Survey can be found in the attached report.

pdf report

Pdf size: 606 KB

January 2019

Survey summary

•    The average ESL rate for home & contents policies remained at 15.2% this month.  
•    Average Base Premiums increased by $3 compared with last month and $52 compared with last year.
•    Average Total Premiums are up $4 over the month to $1,749, which has premiums at the same level as 12 months ago.  
Further information about the January 2019 Standard Property Profile Survey can be found in the attached report.

pdf report

Pdf size:647 KB

December 2018

Survey summary

  • The average ESL rate for home & contents policies fell further to 15.2%.  
  • Two insurers (IAG & Westpac) reduced ESL rates.
  • Average Base Premiums increased by $9 compared with last month and $47 compared with last year.
  • Average Total Premiums are up $1 over the month down $20 over the year.  
     

Further information about the November Standard Property Profile Survey can be found in the attached report.

pdf report

Pdf size: 657 KB

November 2018

Survey summary

  • The average ESL rate for home & contents policies fell to 15.8%.  
  • One insurer (Allianz) reduced ESL rates.
  • Average Base Premiums increased by almost $10 compared with 1 October 2018 and $19 compared with last year (up 2%). 
  • Average Total Premiums are up $9 over the month down $47 over the year.  
     

Further information about the November Standard Property Profile Survey can be found in the attached report.

pdf report

Pdf size: 599 KB

October 2018

Survey summary

The average ESL rate fell further to 16.2%.  

  • Three insurers reduced ESL rates.
  • Average ESL rates are now significantly lower than historic levels.
  • Average Base Premiums remained almost flat over the month to 1 October 2018 (+$2).  Over the year there was a small increase of 1.1%.  
  • Average Total Premiums are down $7 over the month $47 over the year.  
  • Significant variations sit behind these Average Base and Total Premium changes.

Further information about the October Standard Property Profile Survey can be found in the attached report.

pdf report

Pdf size: 562 KB

September 2018

Survey summary

The average ESL rate fell again this month to 16.8%.  

  • Average dollar amount of ESL collected on a policy is down almost 31% since we began collecting data (October 2016) and 17.8% down since the reintroduction (August-October 2017).
  • Westpac was the only insurer to change ESL rates this month, reducing rates by 4 percentage points.
  • Average Base Premiums remained fairly flat over the month to 1 September 2018, increasing by 0.8%.  Over the year there was a small fall of 0.9%.  
  • Average Total Premiums are up $10 over the month and down $45 over the year.  However, significant variations sit behind these benign average changes

Further information about the September Standard Property Profile Survey can be found in the attached report.

pdf report

Pdf size: 556KB

 

August 2018

Survey summary

The average ESL rate in August 2018 fell again this month to 17.1%.  This compares to 3.3% in August 2017, when ESL had not been fully reintroduced, following the announcement of the deferral of the removal of ESL.  As a result, policyholders renewing in August still faced a large price increase from the previous year.  

  • Three insurers reduced ESL rates this month: AAI (including AAMI, Suncorp and GIO) decreased ESL from 15.5% to 14.5%, QBE and OnePath (which is underwritten by QBE) from 20% to 16.5%. 
  • Average base premiums remained flat over the month to 1 August 2018, and decreased a small amount (-1.4%) over the 12 months.  
  • Average Total Premiums over this period have increased 12.1%, principally as a result of the reintroduction of ESL.
     

Further information about the August Standard Property Profile Survey can be found in the attached report.

pdf report

Pdf size: 539KB

July 2018

Updated request

The Monitor’s request for data from insurers for its standard profile survey was updated from 1 July 2018.  
•    The survey has added a 13th insurer, Youi.  
•    Some refinements were made to the policyholder profile to clarify the basis upon which insurers are to provide their quotes.
When comparing pre-July 2018 data with July 2018 data and beyond, readers should be aware that some changes may be caused by the refinements noted above
The Monitor has granted additional time for insurers to submit their data to allow insurers to make any necessary adjustments to their quotations process.  
 

Survey summary

The average ESL rate in July 2018 was 17.9% compared with zero in July 2017 (when ESL had been removed from premiums by insurers in anticipation of reform, now deferred).  Policyholders renewing in July therefore faced a large price increase from the previous year.  
Two insurers reduced ESL rates this month: The Insurance Group Australia (including NRMA, CGU and Coles) decreased ESL from 21.0% to 17.0%, and Woolworths, also decreased ESL rate, from 20% to 18%.
Across all insurers and locations in the sample:
•    Average base premiums remained flat over the month to July 2018, and decreased a small amount (0.1%) over the 12 months.  
•    Average Total Premiums over this period have increased 17.6%, principally as a result of the reintroduction of ESL.

More detailed information on the July 2018 survey can be found in the attached pdf report.

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Pdf size: 630KB

June 2018

Survey summary

The Monitor's survey results show that all but one insurer – Suncorp - have held ESL rates constant. Suncorp dropped ESL rates from 19% to 15.5% across its three brands (Suncorp, AAMI and GIO).

Suncorp is now charging the lowest ESL rate on combined home and contents insurance within our sample.  Across all sampled insurers, ESL rates are now sitting at an average of 19.0%.  Many policyholders may, however, be facing higher ESL charges compared with this time last year, when ESL rates were averaging around 2.2%.

Base and total premiums have remained relatively flat since May 2018 (refer Tables 1 and 2).  Base premium reductions were experienced by Allianz policies in seven locations as a result of a premium review.

Table 1: Base Premiums - % change since previous month

Base Premiums Randwick Concord Riverview Bradbury Hornsby Hinton East
Gosford
Canowindra Medlow
Bath
Byron
Bay
Wollongong
AAMI 0.6% 0.5% 0.5% 0.5% 0.5% 0.4% 0.5% 0.4% 0.5% 0.4% 0.4%
Allianz -1.3% 0.5% 0.5% -1.3% 0.5% -2.8% 0.5% -4.0% -0.1% -7.9% -3.0%
CGU 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Coles 0.3% 0.3% 0.3% 0.3% 0.3% 0.2% 0.3% 0.3% 0.3% 0.3% 0.3%
CommInsure 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
GIO 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
NRMA 0.3% 0.3% 0.2% 0.2% 0.2% 0.1% 0.2% 0.2% 0.2% 0.3% 0.3%
OnePath 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
QBE 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Suncorp 0.0% -0.1% 0.0% -0.1% -0.1% -0.1% -0.1% -0.1% 0.0% -0.1% -0.1%
Westpac -3.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Woolworths 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.3% 0.2%
Location Average -0.2% 0.2% 0.2% 0.0% 0.1% -0.2% 0.1% -0.2% 0.1% -0.6% -0.2%

 

Table 2: Total Premiums - % change since previous month

Total premiums Randwick Concord Riverview Bradbury Hornsby Hinton East
Gosford
Canowindra Medlow
Bath
Byron
Bay
Wollongong
AAMI -2.4% -2.4% -2.4% -2.5% -2.5% -2.5% -2.5% -2.6% -2.5% -2.5% -2.5%
Allianz -1.3% 0.5% 0.5% -1.3% 0.5% -2.8% 0.5% -4.0% -0.1% -7.9% -3.0%
CGU 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Coles 0.3% 0.3% 0.3% 0.3% 0.3% 0.2% 0.3% 0.3% 0.3% 0.3% 0.3%
CommInsure 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
GIO -2.8% -2.8% -2.8% -2.9% -2.8% -2.9% -2.9% -2.9% -2.9% -2.9% -2.9%
NRMA 0.3% 0.3% 0.2% 0.2% 0.2% 0.1% 0.2% 0.2% 0.2% 0.3% 0.3%
OnePath 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
QBE 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Suncorp -3.0% -3.0% -3.0% -3.0% -3.0% -3.0% -3.0% -3.0% -3.0% -3.0% -3.0%
Westpac -3.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Woolworths 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.3% 0.2%
Location Average -1.0% -0.6% -0.6% -0.7% -0.6% -0.9% -0.6% -1.0% -0.6% -1.3% -0.9%

OnePath, NRMA, CGU and Suncorp have experienced large base premium increases both year on year and since the reintroduction1  of the ESL.  By contrast, Woolworths and Westpac policies benefited from significant base premium reductions over the same period.

Table 3: Movement in Base Premium  

  Jun 17 vs
Jun 18
Since ESL
Reintroduction
AAMI -3.40% -4.30%
Allianz -1.00% -1.00%
CGU 13.50% 13.50%
Coles 9.70% 2.40%
CommInsure -2.50% -0.50%
GIO -4.10% -5.30%
NRMA 16.00% 14.70%
OnePath 10.60% 9.00%
QBE -2.30% -2.30%
Suncorp 13.60% 8.80%
Westpac -14.30% -15.30%
Woolworths -14.50% -18.60%
Average 1.80% 0.10%
Min -14.50% -18.60%
Max 16.00% 14.70%

 1 The reintroduction is different for each insurer with all insurers reinstating the ESL in September 2017, excluding Allianz and Westpac who were in August 2017 and CommInsure in October 2017.

Premiums by location

The June 2018 survey results for each of our sampled insurer and locations are summarised in Tables 4 and 5 below.

Table 4: Total Annual Premiums - June 2018

  Randwick Concord Riverview Bradbury Hornsby Hinton East
Gosford
Canowindra Medlow
Bath
Byron
Bay
Wollongong
AAMI $1,664 $1,568 $1,708 $1,294 $1,403 $1,199 $1,499 $1,024 $1,711 $1,617 $1,262
Allianz $1,273 $1,222 $1,294 $1,334 $1,173 $2,030 $1,455 $1,153 $1,372 $1,187 $1,211
CGU $1,538 $1,558 $1,517 $1,412 $1,271 $5,100 $1,664 $1,414 $1,400 $2,230 $1,516
Coles $1,170 $1,112 $1,226 $1,344 $639 $1,800 $1,175 $2,100 $1,208 $1,943 $1,794
CommInsure $1,811 $1,772 $1,786 $1,661 $1,523 $2,571 $1,892 $2,054 $1,616 $1,763 $1,568
GIO $1,850 $1,401 $1,955 $1,682 $1,637 $1,695 $1,846 $1,751 $2,122 $1,883 $1,674
NRMA $2,225 $2,085 $2,402 $2,183 $2,243 $9,225 $2,395 $1,946 $2,652 $1,976 $1,757
OnePath $2,207 $2,074 $2,258 $1,962 $1,945 $3,554 $2,514 $2,761 $2,170 $2,380 $2,104
QBE $1,878 $1,727 $1,964 $1,538 $1,566 $3,520 $2,113 $2,630 $1,845 $2,427 $1,757
Suncorp $2,003 $1,452 $1,991 $1,708 $1,622 $1,837 $1,883 $1,783 $2,375 $2,020 $1,717
Westpac $1,341 $1,459 $1,465 $1,350 $1,158 $1,479 $1,555 $1,525 $1,446 $1,457 $1,330
Woolworths $1,213 $1,269 $1,251 $1,122 $1,168 $2,070 $1,362 $1,449 $1,346 $1,970 $1,135
Location Average $1,681 $1,558 $1,735 $1,549 $1,446 $3,007 $1,779 $1,799 $1,772 $1,904 $1,569

 

Table 5: ESL Rates - June 2018

ESL Rate Randwick Concord Riverview Bradbury Hornsby Hinton East
Gosford
Canowindra Medlow
Bath
Byron
Bay
Wollongong
AAMI 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5%
Allianz 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0%
CGU 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0%
Coles 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0%
CommInsure 18.5% 18.5% 18.5% 18.5% 18.5% 18.5% 18.5% 18.5% 18.5% 18.5% 18.5%
GIO 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5%
NRMA 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0%
OnePath 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
QBE 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
Suncorp 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5% 15.5%
Westpac 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0% 21.0%
Woolworths 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
Location Average 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0% 19.0%

The quotes obtained by the Monitor continues to display considerable variations between different insurers, even at the same location (Table 6).  Across all locations, the most expensive quote is more than twice the cheapest quote. Total premium quotes at Hinton exhibit the largest low-high variation, followed by Hornsby.  It is unlikely that all of the variation at each location can be wholly explained by the different views held by insurers on risk and insurer cost structures.

Table 6: Variation in Total Premiums

  Randwick Concord Riverview Bradbury Hornsby Hinton East
Gosford
Canowindra Medlow
Bath
Byron
Bay
Wollongong
Lowest $1,170 $1,112 $1,226 $1,122 $639 $1,199 $1,175 $1,024 $1,208 $1,187 $1,135
Highest $2,225 $2,085 $2,402 $2,183 $2,243 $9,225 $2,514 $2,761 $2,652 $2,427 $2,104
Multiple:
highest / Lowest
1.90x 1.88x 1.96x 1.95x 3.51x 7.69x 2.14x 2.70x 2.20x 2.04x 1.85x

Our sample indicates that in Randwick, Concord, Riverview, Hornsby and Medlow Bath, NRMA Insurance is the most expensive whilst Coles is the least expensive.  We note that Coles Insurance, which is part of Coles Financial Services, is backed by the Insurance Australia Group whose leading retail brand is NRMA Insurance (Table 7).

Our sample also indicates that OnePath is the most expensive insurer in East Gosford, Canowindra and Wollongong, and ranks as second most expensive in Randwick, Concord, Riverview, Bradbury, Hornsby and Byron Bay.

Table 7: Insurer ranking based on June 2018 Total Annual Premiums

  Randwick Concord Riverview Bradbury Hornsby Hinton East
Gosford
Canowindra Medlow
Bath
Byron
Bay
Wollongong
AAMI 7 5 7 11 7 12 9 12 6 10 10
Allianz 10 11 10 10 9 7 10 11 10 12 11
CGU 8 6 8 7 8 2 7 10 9 3 8
Coles 12 12 12 9 12 9 12 3 12 7 2
CommInsure 6 3 6 5 6 5 4 4 7 9 7
GIO 5 9 5 4 3 10 6 7 4 8 6
NRMA 1 1 1 1 1 1 2 5 1 5 4
OnePath 2 2 2 2 2 3 1 1 3 2 1
QBE 4 4 4 6 5 4 3 2 5 1 3
Suncorp 3 8 3 3 4 8 5 6 2 4 5
Westpac 9 7 9 8 11 11 8 8 8 11 9
Woolworths 11 10 11 12 10 6 11 9 11 6 12

 Note: 1=Most expensive, 12=Least expensive

May 2018

Survey summary

The survey results for May show that all but one insurer has held ESL rates constant. Comminsure reinstated ESL in October 2017 and has held the rate at 23% until this month when the rate dropped to 18.5%.  Across all surveyed insurers, ESL rates are now sitting around 20%.  Many policyholders may, however, be facing higher ESL charges compared with this time last year, when ESL rates were averaging around 8.6%.

The table below shows the average ESL rates charged by the 11 insurers across all locations included in the survey.

average ESL rates across all survey locatons

Significant increases in total premiums have been reported by Suncorp for quotes provided at all locations except Wollongong since April 2018.  The month increase ranges from $209.82 at Concord to $492.02 at Medlow Bath.  As the price hike comes at a time when policyholders are facing higher ESL charges in their renewal this year, the Monitor is concerned that some policyholders may face price shock.  Our Medlow Bath policyholder for example, is facing a May renewal premium rise of $713.  (See Suncorp premium increases tab below for more information.)

The lift in Suncorp’s base premiums takes its overall year on year (i.e. May 2018 compared to May 2017) base premium increase to 13.6%.  This is a significant rise but is behind Onepath and NRMA, whose base premiums respectively rose 17.5% and 16.1%, year on year.  The Monitor further observes that most of the rise in NRMA’s base premiums has occurred since it reintroduced ESL onto its premiums in September 2017. 

 Base premium Increases

Insurer May 17 to
May 18
Since ESL
Reintroduction
AAMI -3.80% -4.80%
Allianz 0.80% 0.80%
CGU 13.50% 13.50%
Coles 9.70% 2.10%
CommInsure -2.50% -0.50%
GIO -4.10% -5.40%
NRMA 16.10% 14.50%
OnePath 17.50% 9.00%
QBE -2.30% -2.30%
Suncorp 13.60% 8.90%
Westpac -14.00% -15.10%
Woolworths -14.70% -18.80%

Premiums by Location

The quotes obtained by the Monitor continues to display considerable variation between different insurers, even at the same location.  Across all locations, the most expensive quote is more than twice the cheapest quote.  It is unlikely that all of the variation at each location can be wholly explained by the different views held by insurers on risk and insurer cost structures.

Total Annual Premium quotes by Location - May 2018

  Randwick Concord Riverview Bradbury Hornsby Hinton East
Gosford
Cano-windra Medlow Bath Byron Bay Wollon-gong
AAMI $1,705 $1,608 $1,750 $1,327 $1,439 $1,230 $1,537 $1,051 $1,755 $1,659 $1,294
Allianz $1,289 $1,216 $1,288 $1,352 $1,168 $2,088 $1,448 $1,201 $1,373 $1,289 $1,249
CGU $1,538 $1,558 $1,517 $1,412 $1,271 $5,100 $1,664 $1,414 $1,400 $2,230 $1,516
Coles $1,167 $1,108 $1,223 $1,340 $637 $1,797 $1,171 $2,094 $1,204 $1,937 $1,788
CommInsure $1,811 $1,772 $1,786 $1,661 $1,523 $2,571 $1,892 $2,054 $1,616 $1,763 $1,568
GIO $1,903 $1,442 $2,012 $1,731 $1,685 $1,745 $1,901 $1,803 $2,185 $1,939 $1,724
NRMA $2,220 $2,080 $2,396 $2,178 $2,237 $9,218 $2,389 $1,941 $2,646 $1,971 $1,752
OnePath (ANZ) $2,207 $2,074 $2,258 $1,962 $1,945 $3,554 $2,514 $2,761 $2,170 $2,380 $2,104
QBE $1,878 $1,727 $1,964 $1,538 $1,566 $3,520 $2,113 $2,630 $1,845 $2,427 $1,757
Suncorp $2,064 $1,497 $2,052 $1,761 $1,673 $1,894 $1,941 $1,839 $2,448 $2,082 $1,771
Westpac $1,384 $1,459 $1,465 $1,350 $1,158 $1,479 $1,555 $1,525 $1,446 $1,457 $1,330
Woolworths $1,210 $1,266 $1,248 $1,120 $1,165 $2,067 $1,359 $1,445 $1,343 $1,965 $1,133
Location
Average
$1,698 $1,567 $1,746 $1,561 $1,456 $3,022 $1,790 $1,813 $1,786 $1,925 $1,582
Min $1,167 $1,108 $1,223 $1,120 $637 $1,230 $1,171 $1,051 $1,204 $1,289 $1,133
Max $2,220 $2,080 $2,396 $2,178 $2,237 $9,218 $2,514 $2,761 $2,646 $2,427 $2,104
Max. multiple
 of Min.
1.9 1.9 2.0 1.9 3.5 7.5 2.1 2.6 2.2 1.9 1.9

Our sample indicates that in Randwick, Concord, Riverview, Hornsby and Medlow Bath, NRMA Insurance is the most expensive whilst Coles is the least expensive.  Interestingly, we note that Coles Insurance, which is part of Coles Financial Services, is backed by the Insurance Australia Group whose leading retail brand is NRMA Insurance. 

Insurer ranking based on May 2018 Total Annual Premiums
Note: 1 = Most expensive, 11 = Least expensive

  Randwick Concord Riverview Bradbury Hornsby Hinton East
Gosford
Cano-
windra
Medlow
Bath
Byron
Bay
Wollon-
gong
AAMI 7 5 7 11 7 12 9 12 6 10 10
Allianz 10 11 10 8 9 6 10 11 10 12 11
CGU 8 6 8 7 8 2 7 10 9 3 8
Coles 12 12 12 10 12 9 12 3 12 8 2
CommInsure 6 3 6 5 6 5 6 4 7 9 7
GIO 4 9 4 4 3 10 5 7 3 7 6
NRMA 1 1 1 1 1 1 2 5 1 5 5
OnePath 2 2 2 2 2 3 1 1 4 2 1
QBE 5 4 5 6 5 4 3 2 5 1 4
Suncorp 3 7 3 3 4 8 4 6 2 4 3
Westpac 9 8 9 9 11 11 8 8 8 11 9
Woolworths 11 10 11 12 10 7 11 9 11 6 12

Our sample also indicates that OnePath is the most expensive insurer in East Gosford, Canowindra and Wollongong, and ranks as second most expensive in Randwick, Concord, Riverview, Bradbury, Hornsby and Byron Bay.

Suncorp premium increases

Total Annual Premiums - Suncorp

Location Apr-18 May-18 Month Change May Last Year May This Year Year change
Bradbury $1,517 $1,761 $244 $2,482 $1,761 -$720
Byron Bay $1,666 $2,082 $416 $1,479 $2,082 $604
Canowindra $1,472 $1,839 $368 $1,311 $1,839 $528
Concord $1,287 $1,497 $210 $1,140 $1,497 $357
East Gosford $1,674 $1,941 $268 $1,488 $1,941 $453
Hinton $1,572 $1,894 $322 $1,398 $1,894 $496
Hornsby $1,440 $1,673 $233 $1,276 $1,673 $397
Medlow Bath $1,956 $2,448 $492 $1,734 $2,448 $714
Randwick $1,779 $2,064 $285 $1,577 $2,064 $486
Riverview $1,769 $2,052 $283 $1,568 $2,052 $484
Wollongong $1,770 $1,771 $1 $1,503 $1,771 $268

As shown in the table below, the May change in Suncorp’s quotes is dominated by a rise in base premiums.  The increase over the previous month ranges from 16% to 25%.  Given the materiality of the change, the Monitor expects that Suncorp policyholders will be provided with an adequate breakdown and explanation for the rise.  The Monitor has raised its concerns with Suncorp.

Source of Suncorp price change April to May 2018

Location Base Premium ESL GST & Duty
Bradbury $171 $33 $41
Byron Bay $291 $55 $69
Canowindra $258 $49 $61
Concord $147 $28 $35
East Gosford $188 $36 $44
Hinton $226 $43 $53
Hornsby $163 $31 $39
Medlow Bath $345 $66 $82
Randwick $199 $38 $47
Riverview $198 $38 $47
Wollongong $1 $0 $0

 

April 2018

Survey summary

The results for April 2018 point to relatively minor movements in base and total premiums quoted by insurers averaged across all locations when compared with the figures for the previous month. However, the average base and total premiums quoted by some insurance brands have increased since April 2017, as shown below. Some of the increase in average total premiums since April 2017 can be attributed to higher ESL rates currently being charged by insurers. ESL rates for the same month last year were lower than normal as insurers were reducing ESL rates ahead of its anticipated removal by 1 July 2017.

It is also evident that there is a wide range in the prices quoted by the different insurers. The April 2018 figures indicate that the lowest total premium was about half that of the highest total premium.

Most of the quotations for April 2018 fall within a band of +/- 20% of the average (i.e. between $1439 and $2159), except for OnePath and NRMA, whose average total premium were almost $200 and $681 above upper end of that band, respectively.  By contrast, the April 2018 average total premium quotes for Allianz, Coles, Woolworths and Westpac were below the lower end of that band.

Average premium quotes

The table below provides a summary of movements in average base and total premiums quoted by each insurer, across the 11 locations for which quotations are supplied.  It is worth noting the difference between base and total premiums:

  • Base premiums reflect the price the insurer is charging to insure the policyholder for the risks that are covered under the insurance policy, plus operating costs
  • Total premiums comprise base premiums, plus the Emergency Services Levy, plus GST and stamp duty.
  Average Base Premium Average Total Premium
  Apr-17 Apr-18   Apr-17 Apr-18  
AAMI $1,084 $1,041 $1,482 $1,485
Allianz $946 $973 $1,361 $1,389
CGU $1,139 $1,292 $1,563 $1,875
Coles $881 $966 $1,209 $1,402
CommInsure $1,313 $1,281 $1,811 $1,889
GIO $1,333 $1,278 $1,822 $1,823
NRMA $1,681 $1,958 $2,308 $2,840
OnePath (ANZ) $1,395 $1,638 $1,940 $2,357
QBE $1,485 $1,451 $2,066 $2,088
Suncorp $1,182 $1,141 $1,615 $1,627
Westpac $1,138 $978 $1,501 $1,419
Woolworths $1,274 $966 $1,772 $1,390
Monthly Average – All locations $1,238 $1,247 $1,704 $1,799
Lowest $881 $966   $1,209 $1,402  
Highest $1,681 $1,958   $2,308 $2,840  

Quotes by location

Total premiums $ Bradbury Byron Bay Canowindra Concord East Gosford Hinton Hornsby Medlow Bath Randwick Riverview Wollongong
AAMI 1325 1658 1051 1606 1535 1229 1437 1754 1703 1748 1293
Allianz 1352 1329 1201 1254 1509 2142 1204 1373 1289 1328 1301
CGU 1412 2230 1414 1558 1664 5100 1271 1400 1538 1517 1516
Coles 1336 1931 2088 1105 1168 1794 635 1201 1163 1219 1783
CommInsure 1724 1830 2132 1840 1964 2668 1581 1678 1879 1854 1628
GIO 1730 1937 1802 1441 1899 1744 1684 2183 1901 2010 1722
NRMA 2173 1966 1936 2075 2383 9487 2232 2639 2214 2390 1748
OnePath (ANZ) 1962 2380 2761 2074 2514 3554 1945 2170 2207 2258 2104
QBE 1538 2427 2630 1727 2113 3520 1566 1845 1878 1964 1757
Suncorp 1517 1666 1472 1287 1674 1572 1440 1956 1779 1769 1770
Westpac 1350 1457 1525 1459 1555 1479 1158 1446 1384 1465 1330
Woolworths 1117 1960 1442 1263 1356 2064 1162 1340 1208 1245 1130
Location Average 1545 1898 1788 1557 1778 3029 1443 1749 1679 1730 1590
Min 1117 1329 1051 1105 1168 1229 635 1201 1163 1219 1130
Max 2173 2427 2761 2075 2514 9487 2232 2639 2214 2390 2104
Max. multiple of Min. 1.9 1.8 2.6 1.9 2.2 7.7 3.5 2.2 1.9 2.0 1.9

Discussion Paper

Discussion Paper issued April 2018

The Insurance Monitor released a Discussion Paper on 26 April 2018, which outlines the findings of a mid-term review into the basis on which the quotations are obtained and the reliability and consistency of the findings to date.

Consultation has now closed.  Feedback has been received from a number of interested parties.

 

Insurance Monitor's Discussion Paper
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