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CityPress - - Business -

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

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