Changed member behaviour sparks RACQ review
RACQ has vowed to return any significant profit made on personal motor insurance to its members holding a personal motor insurance policy*, as a result of unexpected changes to the way Queenslanders were driving.
RACQ Group CEO David Carter said the pandemic had and will continue to alter the way motorists used their vehicles, and this had prompted the Club to review the way it managed the pricing of car insurance, ensuring members who hold a motor insurance policy* received the best value from their policies.
“We’re now seeing most people back in their cars, but the reality is, the current events in Melbourne show us how quickly things can change. So, while our activity is ramping back up in Queensland, and insurance claims are coming through, we are still yet to see how driver behaviour will change in the longer term,” Mr Carter said.
“That’s why we are pledging to review and return any significant profit we make from reduced activity on motor vehicle insurance claims, through a new rebate scheme.
“Where the administration cost of returning the money to a member is more than the amount to be returned, $10 or less, we’ll donate the funds to our RACQ Foundation to support community groups struggling with the impacts of natural disasters and COVID-19.
“We were proud to recently reduce premiums on motor vehicle insurance policies for three months while Queenslanders were driving less due to travel restrictions, giving back $7 million in discounts, and we’re proud to now deliver this new rebate scheme.
“We are also making the commitment to freeze our roadside membership fee for 12 months from 1 July 2020, to help members through this difficult time.”
A review would be conducted every six months to guarantee any significant profit would be given back to Queenslanders and their communities as a result of unexpected changes to the way Queenslanders were driving.
Mr Carter said RACQ was also reviewing its wider operating model to ensure the Club was ready to cope with other changes to consumer behaviour stemming from the pandemic.
“We’re working to identify areas of our business where we can improve our efficiency and deliver our members what they expect, because that’s changed in recent months,” he said.
“We’ve seen our members move away from traditional channels like call centres and branches, to digital channels, and we believe this change is permanent, so we have to make sure we’re prepared to deliver the best value moving forward.”
The Club’s commitment to the community remained unchanged as initiatives including the ARTIE indigenous driving education program, the long-standing RACQ Air Rescue Network sponsorship and RACQ Foundation continued to support Queenslanders each day.
*Excluding RACQ Compulsory Third Party Insurance.