Do you need to use an insurance broker?

When online short-term insurance offerings were first launched in South Africa more than 15 years ago, the insurance industry underwent a major facelift. Consumers were now able to go direct to insurers, effectively skipping out brokers.

While there was much excitement around this prospect initially, the veneer soon wore off as consumers realised just how overwhelming it was to compare pricing, policies, excesses and pick the right plan offering the best coverage. Short-term insurance can be a minefield, and navigating it without a guide can be downright daunting.

There is nothing worse than signing up for insurance, only to find out when it comes time to claim that you're underinsured or your policy doesn't cover what you thought it did.

This points to the continuing importance of insurance brokers and the critical role they play in bridging the gap between consumers and insurers.

The 2022-23 Insurance Barometer reinforced this, stating that brokers are needed more than ever during tough economic conditions and that they help clients better manage their risks during these times.

In January this year, S&P Global Ratings seemed to echo these sentiments when it said that insurance brokers were poised for growth in 2024.

Working with a broker eliminates the guesswork when taking out an insurance policy. Brokers provide a safety net as well as a direct line of communication to the insurer, preventing important information from getting lost in the enquiry, signup or claims processes.

Brokers streamline short-term insurance in the following ways:

They can find the best-priced insurance offering for your budget

Your broker will work with your monthly income and expenses to help you find the right policy that covers your needs, but still meets your budget. Comparing all the policies on the market to try meet your budget and your needs can be complicated and confusing.

They will ensure you only pay for the cover you need

Experienced brokers will do a needs analysis to establish the extent of the cover you require, and then ensure that you only pay for that. This ensures that the policy you choose is perfectly suited to you, and that you're not wasting money on unnecessary cover.

They will pair you with the insurance company that best suits you

Price and excess are not the only things to look for when choosing an insurance policy; the company behind that policy is just as important. Your broker knows all the industry players, and which ones deliver the best service. They will match you with the insurer that best reflects your priorities.

They deliver solid after sales service

When going direct to an insurer, you have to contact the call centre with queries or in an emergency and wait to be assisted. You're just a number. When working with a broker, you can contact them directly, any time, with queries. Your broker can help you submit your claim and manage any disputes with your insurer on your behalf.

Our extensive industry experience, our solid track record and our long-standing relationships with insurance companies perfectly position us to assist you with all your short-term insurance needs.