Suncorp is losing 125,000 customers a month to churn because it is competing on price alone and not offering enough “non-price value”, according to Group CEO Michael Cameron.

Speaking to shareholders at an investor day last week, he said the churn rate “tells me that to compete on price is just not sustainable”.

Mr Cameron says a “wave of activity” from disruptors has the potential to undermine the big insurance players’ competitive advantage.

“To address this opportunity we are driving our existing business to create value for our customers, and the concept of non-price value is critical,” he said.

“We have moved from focusing on products to focusing on customer outcomes and getting more connected customers, and this is where the basis of the platform or the marketplace that we have been working on is so critical.”

This includes making it easier to navigate around Suncorp’s digital sites, giving customers access to the company’s wide range of products and providing other products from third parties.

Mr Cameron says attracting just 50,000 more digital customers would result in around $10 million in revenue.

Mr Cameron also says reducing working claims costs remains his number one priority.

“Over the past few months we’ve seen a big reduction in open claims. They’ve reduced from 64,000 to 51,000 but we also expect a major reduction over the next few weeks and months.”

Suncorp has also invested $5 million in US-based insurance platform Trov, which allows customers to instantly insure individual items.

Trov was launched in Australia this week.

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