Direct insurance is increasing in popularity
More people are finding it simpler and quicker to purchase insurance directly, cutting out brokers
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According to Anton de Souza, speaking for 1LifeDirect, South Africans looking
for straightforward life insurance products are going for the direct
insurance option instead of through a broker.
De Souza was giving an interview on Summit Business TV regarding the trend of
South Africans to pick direct insurance and how wise this choice really is in
the long run.
De Souza said that direct insurance was a good choice as long as the
consumer's? needs are relatively straightforward. "A lot of South Africans who
are just entering the life market are looking for something that doesn't have
all the jargon, but is in fact a simple, affordable product that doesn't have
reams and reams of acronyms and things, that says it's pure life cover and this
is what you're covered for, and as long as you've disclosed everything, this is
what you're going to get paid," said de Souza.
He said that if this is the case, the majority of South Africans could go
online and purchase an affordable life insurance product within 20 minutes.
When asked about the exceptions to the scenario of straightforward life
insurance for the average consumer (for example, a serious illness), De Souza
did not seem to think that this poses a huge problem. "What has been developed
internationally and in South Africa is in fact an underwriting system that will
probe the questions - so if you do have a certain medical condition it will
probe those questions for you," he said.
"Once again," added De Souza, "that's not in very difficult medical language
but in straightforward English - it will allow you to do all that online and
then we will go and price for that medical condition."
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