New general insurance brands are expanding their customer bases at the expense of traditional market leaders, according to researcher Roy Morgan.

Five of the fastest-growing new brands – Bingle, Budget Direct, Coles, Real and Youi – were tracked for a year.

Although they account for only 4% of the general insurance market, they are capturing 7% of new policies and 15% of switched policies, the study shows.

Suncorp, IAG, QBE and Allianz have traditionally dominated the market, but the online channel is now “stirring up competition” as brands look to cut costs, according to Roy Morgan Industry Communications Director Norman Morris.

“These challenger brands are growing at a faster rate than the rest of the general insurance sector,” he said.

“With the ease of online comparison between providers, major players concerned with retention need to focus on the additional value they provide to justify the price premium they charge.”