by Insurance Zombie
More often than not South African consumers pay a hefty price for the lack of competition amongst ‘Big Business’ in South Africa. Monopolies are commonplace and price fixing by banks and food manufacturers regularly make the headlines in national newspapers.
The insurance industry has been relatively competitive for the past few decades, but due to advances in technology and changes in consumer behavior the traditional broker-based insurance companies have been left behind leaving two insurance companies, Outsurance and DialDirect, to compete in the new car insurance market.
Unlike their competitors Outsurance and DialDirect are direct suppliers of car insurance. The consumer can pick up the phone, call one of these companies, complete a telephonic questionnaire/policy and by the time they hang up, be covered by the insurer. These companies are quick to point out that by cutting out brokers they are able to provide cheaper policies. Whether this is actually the case is debatable as traditional insurers claim that the expertise that brokers offer help consumers tailor their policies to their own needs, thereby saving money.
Where DialDirect and Outsurance do stand out from their competitors is in their utilization of ‘New Media’ particularly the Internet. A quick glance at some of the most popular South African websites like Ananzi and MWeb will reveal a plethora of banners and links all pointing to these companies’ websites.
Both companies have engaged in online affiliate marketing using networks like TrafficSynergy and OfferForge to recruit affiliates who further increase these companies’ online presence by placing banners and links on their websites in order to generate referral commissions.
Most significant of all is Outsurance and DialDirect’s virtual monopoly of Google’s search results, both paid and natural, for car insurance related search phrases like ‘car insurance’. In the US and UK owning a website that ranks naturally in the top 10 for insurance terms on Google is almost as good as being allowed to print your own money. On Google.co.za a search for ‘car insurance’ returns 10 websites, all of which market either Outsurance or DialDirect (including sister companies) policies. DialDirect dominates the top 10, with 8 out of the 10 websites either selling DialDirect policies or those of other Budget Insurance group’s companies like 1st for Woman and Auto & General. The absence of traditional motor insurance companies like Hollard is unmistakable. Outsurance is represented by their own website and by the website of an internet marketing agency acting as an affiliate. This gives DialDirect/ Budget Insurance a score of 8 out of 10, Outsurance 2 out of 10 and the others 0. This situation can only be attributed to the lack of understanding by traditional insurance companies of the importance of the Internet. However, what may change the picture altogether is the advent of insurance aggregators.
...08.10.09
Mendham, NJ 10/09 - Car.Insurance123.co.za proudly announces the launch of its education program for insurance seekers. In addition to offering online quotes for auto insurance, the site now offers informative articles about different types of insurance, how rates are set, and how to obtain discounts to lower one’s premiums.
Many insurance providers only look at the money when they sell a policy. They do not really care if the customer is getting the best possible protection, the right protection, or all discounts to which he/she may be entitled. Car.Insurance123.co.za looks at the insurance industry differently.
They want their customers to be educated in all matters concerning their car insurance needs. They want to ensure that customers know the proper questions to ask when shopping for a policy as well as how to get the best deals without having to settle for cheap insurance that does not cover them properly. To this end, they now have a page devoted to articles about car insurance that are written to inform the customer and enlighten him/her about insurance types, coverage, and rate schedules. They also offer a newsletter sent to customers’ email inbox with more information on a regular basis.
Source: WebWire (press release)
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