Insurance is often looked at as a grudge purchase, something that one needs but never really fun to purchase as it only benefits you if something bad happens. Having said this anyone that has suffered a loss without insurance can testify that it is a huge benefit when needed.
Insurance can be categorized into two major types: long-term and short term insurance. Long-term insurance usually denotes life insurance policies and life cover as well as home owners insurance, where as short term insurance is for things like car insurance, home insurance, travel insurance, business insurance, medical insurance etc.
The insurance industry in South Africa has had a major revival in the last few years; competition has been ever growing allowing for far more choice to the average consumer. Due to pressure on the different insurance companies to offer best value at a discounted cost, many companies have done away with brokers and have sold insurance directly to the consumer.
The feeling that insurance has always been a grudge purchase, has also been looked at by many of the insurance companies and they have tried to circumvent this by offering cash back no claim bonuses. These have offered the consumer the thought of getting something tangible if they do not claim, and allowed the insurance company the benefit of less claims in the long run.
The major leaders in this new wave of South African insurers has been companies like Outsurance, Dial Direct insurance, Budget, First for women, and more recently Miway. These insurers have taken over from the older more traditional insurance companies, mainly by focusing on customer service, branding and marketing to a newer generation.
It is with all these changes and exciting time for people looking for insurance as the choice and competition has allowed for better product offering and service. It is also on the other hand an exciting time to be in the insurance industry as is shown by the many new entrants into the market on a daily basis.
Most of these new changes have come in the short term insurance arena, but lately the life insurance market is taking a similar route towards making life insurance a more affordable stylish insurance. Many of the newer insurance companies, now that they have become well established as short term providers, have started offering life insurance product choices.
In conclusion, although insurance is a grudge purchase, with the many new and exciting products and companies out there, there is something for everyone. It is also important to note that insurance is only of the key risk analysis steps in any financial planning plan because it takes the burden of risk away should there be any major costly unforeseen circumstances.
To find out more about the insurance environment in South Africa and to see the many choices that are available, and have the information at your finger tips with which to make an informed decision, take a look at our website or contact us to get the best you can out of insurance.