While some direct insurance marketing may suggest that you are saving by cutting out the “middle man”, the numbers don’t support this.
The real driver of premium pricing is how your insurer views your risk profile and the extent to which it applies risk rating.
That was the success behind direct insurer OUTsurance, which used sophisticated risk-rating data and analysis to provide lower-cost insurance to low-risk customers. It is now the largest direct insurance company in South Africa.
While certainly ahead of the curve in terms of risk analysis, many large insurers have caught up and are offering equally competitive quotes via their broker force.
Risks determine premiums