Insurer of the Year

It takes a big effort to stay ahead in the fiercely competitive insurance business, but it has paid off yet again

It’s a four-peat for Budget Direct after another year of relentlessly pursuing lowcost and good-value insurance products for its customers.

Throughout the year Budget Direct achieved two major milestones in its offering. In a win for consumers, the insurer has updated its home and contents product disclosure statement (PDS) to make it easier to read and understand what you’re covered for and how to make a claim. Not only has the PDS been tested on customers, with their endorsement, it’s been recognised internationally for its high standard of plain language.

In November 2019, Budget Direct also launched its Money Manager app. A free and exclusive tool for customers, the app tracks the income and expenses in your bank and credit card accounts, and allows you to create a budget and set financial goals.

Jonathan Kerr, chief marketing officer at Budget Direct, says the consistent focus on having insurance solved for customers is why it has won Money magazine’s Insurer of the Year for the past four years.

“It is testament to Budget Direct’s ability to provide better-value car and home insurance than the other national insurers,” says Kerr. “To win this highly coveted award for four years in a row is an unrivalled achievement and demonstrates that we really do have insurance solved for our customers.

“We’re extremely proud of this achievement and the win is great validation of our team’s passion and hard work to provide value for our customers.”

Alex Dunnin, executive director of research and compliance at Rainmaker Information, says Budget Direct’s intense digital focus allows it to be a national brand. “As a primarily digital business it can process claims 24 hours a day and guarantees all repairs to cars and homes nationwide.”

He says the insurer constantly reviews and assesses its systems and customer experiences as part of its strategy to stay ahead in the brutally competitive insurance market.

Highlighting the need for insurance, a Budget Direct-commissioned survey of 1000 Australians in September 2019 found that more than 540 of them couldn’t cover a $1000 emergency expense. Meanwhile, about 550 participants could only cover living expenses for up to three months.

Of the 8300 reviews on Budget Direct’s website as at June this year, more than 6000 rated it five stars, while a further 1600 rated it four stars. It currently offers a 30% discount if you purchase home and contents insurance online.

Earlier this year Budget Direct also launched a Bushfire Recovery Fund with grants of up to $20,000 to assist communities affected by the fires and to repair or replace damaged facilities or equipment that wasn’t covered by insurance.

Holding second place for several years in these awards, CGU remains an excellent insurer. Dunnin points out the business has been running in Australia for 165 years, is part of the Insurance Australia Group (IAG) and is also noted for its wide range of products, especially its emphasis on insuring businesses, farmers and tradespeople.

In third place for the second year, GIO also has a comprehensive policy range and is part of the Suncorp group.