Outsurance

[AndyD]

Even without knowledge of the policies, or the insurance industry for that matter, I would also be very suspicious of such a big price difference. If there's no obvious reason it might be worth getting a professional to cast a beady eye over the small print and legalese. If it looks too good to be true it usually is.

[ELBiz]

I don't know of any cost-effective insurance out there. Have been with Sanlam, Absa, M&F and Prestasi before. None of them are eager to pay out any claims - there is always red tape .... and you just seem to pay, pay and pay and yet they always seem to find a reason why they won't be liable. Two friends of mine are with Outsurance and both are happy with the service. Both had claims and there was no issue.

[Phil Cooper]

The Financial Mail was interviewing the MD of a Direct Insurer. It makes interesting reading. I think the MD shot himself in the foot - and gave one of the BEST reasons FOR using a Broker.

What do you think?

Or: With friends like this, who needs enemies…

I was reading a well-known financial website the other day when I came across this little insightful gem… It was one in a series of questions asked by a seasoned financial journalist of a well-known direct insurer that isn’t linked to telesure.

“…Q: Why do the direct insurers have lower claims ratios than the broker-based businesses?

A: We are better at selecting risk as we bring in clients one by one. Santam, Mutual & Federal and Zurich get a portfolio of business from a broker and sometimes take on a few bad risks to keep the business. And brokers certainly put pressure on the insurers to pay their clients’ claims. We are not as lenient. …”

I had to re-read the response, specifically the last sentence. I haven’t seen any retractions since that article appeared so I have to assume the CEO signed off on the comment. If that’s the case this sounds like a direct attack on the broker market. This is rather interesting considering that the business is part of a bigger group, which has a rather large broker force that they get business from.

We are not as lenient? Really? That’s something your clients want to hear. Especially those that have chosen to go the direct route because the premiums are lower and they cut out the middleman. While it might make great sense to the shareholders of this listed company, it’s a relatively small portion of their total short-term business, as brokers still play a significant part in the income generation.

This almost sounds like a message to potential clients to rather work through a broker, especially if your are a “bad risk” because the broker will put pressure on the insurer to settle the claim. Oops – another side swipe at the broker for forcing the insurer to undertake ‘bad’ business practice.

In fact now that I think of it, brokers should be thanking this direct insurer for making the business case for brokers, their way. After all they put pressure on insurers to pay out the few bad risk clients. What a crock of smelly poo. Nobody does business like that, except for a few bad apples.

[Dave A]

Phil, are you seriously suggesting brokers don't horsetrade with the insurance companies?

There is another way of looking at the point, though. If you are a low risk client, this suggests you would save money cutting out the broker.

The problem comes at claim time though - which is the real reason I hang onto doing things through my broker. It helps to have the leverage the broker can bring to bear if you have a bad run. And if we could predict when accidents, thefts, insurable losses etc. were going to happen, we wouldn't need insurance in the first place, would we

[Phil Cooper]

Hi

No - of course we horsetrade - that is our job!

BUT - even if you are a "good client" the Direct guys WILL be harsher than with a broker backing you!

Bear in mind - you can have NO claims for 10 years - then 3 in a month - Murphy's law, and I KNOW that! Seen it so often!


THEN see what the Direct Guys do!

I have just had a claim for R350,000 paid for a client which (technically) was outside the ambit of the policy. BUT - because client had had a good run with the Insurer for 5 years - and the rest of my "book" with the Insurer is running well - they found a way to pay it.

Try THAT with a Direct market!

[Dave A]

I think in our different ways we're both batting for the same side, Phil

[Johann D Landsberg]

Been with Outsurance for more than 5 years and had 1 claim. I am happy with the service and the premiums I pay

[tec0]

I have a real problem with Auto & General, They are basically saying that when you move house that you basically “reset” some of your policy benefits, regardless of the fact that you moved to a safer aria. Secondly is there neglect, when we moved house I phoned the broker and gave him my details.

When I phoned them again my details was never even updated... That bothers me because if I had a claim then I would have had some real trouble. As for my broker I told Auto & General that I want a new broker because of this neglect they gave me a number and to-date that number is yet to work.

My advice is, always double check everything, and never trust your broker. I did and it cost me an extra R1200 a year just because he neglected a few other aspects... and I am not getting back pay. Secondly my details were never updated! That IS a problem especially when your broker insists on mobile-phone calls. He knows that the landlines are recorded so to get around his responsibilities I could NEVER reach him on a land line. It was mobile only...

Well I am still with Auto & General but I cannot say that I am not shopping around.

[Peter Princeton]

just for interest...

my future wife recently relocated to the west coast...

she has been with outsurance for a number of years...

she drives an old clio - for which she paid around 560/mo up in potch.

when she started collecting quotes, they ranged from 290 to 360 (with varying stipulations of course)

the new outsurance quote?

508/mo.....

does that sound cheaper?

....

[murdock]

you may not pay for the middle man but who pays for the advertising? anyone ever trid to advertise on television...pay an actor and have a huge call centre...which can answer you call within 4 seconds...it all costs money...the poor little middle man cannot aford the advertising...gets hammered by the client and threatened that they will move at the drop of a hat...you will find the callcentre is contracted out and they are just growing money like the cellphone providers...targeted the housewife at home who controls the house like the ad with poor oke with the screaming wife...it actually the other way around...the housewife has the ad on the tele from 8 am in the morning till lunch time drumming insurance.

my van is insured for bussiness use with various drivers thru a broker...just over R400 per month...my wifes motor vehicle...R470 per month....thru a broker...other quote almost double and some.