Insurers NRMA, SGIC AND SGIO have decided to remodel their rewards programs. Industry analysts say customers will be much worse off under the new terms of policies.

sgioComprehensive car insurance policies held for more than 15 years will have their discount slashed from 20% to 10%. Customers with four policies with one insurer will now receive a 7.5% discount instead of the previous 12.5% off.

These savings are estimated to net the three bands’ parent company, Insurance Australia Group, a cool $150 million a year.

SGICMasterColour64146Insurance Australia Group released a statement denying any ‘material impact’ on customers from reducing the loyalty discounts. It claimed that it has only sought to clarify the rewards programs and this was the best way to achieve that. An NRMA spokeswoman said, “We have changed the structure of our discounting (and the) new structure is not directly comparable to the old structure.”

“(The new structure) rewards more of our customers by increasing the range of eligible insurance policies that contribute (to loyalty discounts).”

NRMAInsurance industry analysts have slammed the decision of IAG. The three separate companies should be competing in a free market place. Apparently they have chosen not to compete on price.

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