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Car insurance shake-up | The Australian

December 09, 2009

A NEW player has entered Australia's general insurance sector, shaking up competition in the $7.5 billion car segment.

The Progressive Corporation, the fourth-largest car insurer in the US, will today launch Progressive Direct, an internet-based car insurer that allows customers to buy and manage policies and report claims online.

Based in Melbourne and led by Western Australia-born Simon Lindsay, the new venture promises savings on premiums by stripping away many overheads, such as retail outlets.

"We're designed for people who prefer to skip past call centres when buying car insurance or doing basic policy updates themselves that they would otherwise typically do through a call centre," Mr Lindsay said.

"Our customers get not only online control and convenience, but also great value because they can customise their own policy and don't pay for sales and administrative support they don't need."

Phone support for claims would still be available, he said.

For a long time the general insurance market has been dominated by four players -- Suncorp, Insurance Australia Group, QBE and Allianz -- but in recent years there has been a proliferation of smaller, mainly online businesses.

"We are not going to compete head-on with those big guys," Mr Lindsay said. Other new players such as Coles, Australia Post and Virgin are expected to put pressure on the larger insurers to stabilise premiums.

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  • Brisbanes Resident Detailer
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  • Member For: 16y 4m 30d
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  • Location: In my Cabin Outside Brisbane.

Agreed. $200 more than Aami.

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  • Member For: 17y 3m 16d
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  • Location: Blacktown!
  On 09/12/2009 at 12:35 AM, our06t said:

shama the website doesn't work real well try clicking get a quote and nothing happens

you must have a strong pop up blocker on stopping you from using it. I just temporaily allowed the site and works but in saying that dont bother. I just tried with my misses Camry and it was $350 more than what AAMI wanted....

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  • Member For: 17y 11m 14d
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Yeah of course it was. Its just a piece based on a press release the company sent to all the big papers, standard practice. Wait 6 months and see what the customer feedback is like regarding claims, bet its sh*t. Currently aami holds number spot for customer satisfaction.

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