As economic pressures rise, people increasingly seek out less costly ways to run their lives. That includes the insurance cover required for cars and other goods, driving the popularity of direct insurance. And, in an increasingly technology-savvy world, customers are realising that cutting out the middlemen means access to the same products, but at a lower cost.
In this environment, those insurers which are able to deliver quality insurance at a low price and with sound customer service, will flourish.
Price and service
Modern consumers want convenience and competitive pricing, so direct insurance makes sense for more people than ever before – especially the ‘internet generation’, which confidently uses online services that don’t necessarily require a personal relationship. That dovetails perfectly with direct insurance solutions.
Strong growth for direct insurance is confirmed by Global Credit Ratings. According to its November 2013 Short-Term Bulletin, direct insurers currently hold a 15% share of the overall market on the back of what it describes as ‘robust growth which continues to outstrip the broader market’. It says the emerging middle class is behind the growth, with young, tech-savvy buyers accustomed to buying products direct from the source to bring down costs.
Together with digital channels, the rise of self-service allows customers to manage their insurance portfolios online, at their leisure. This makes it possible to achieve the balance between low cost (because powerful web-based direct insurance automates many of the tasks and paperwork associated with taking out cover, managing that cover when requirements change, and even claiming) and excellent service.
The rise of the Apps
By extension, mobile apps provide the ability for individuals to access and self-manage their insurance portfolio on a smartphone or tablet, providing further convenience. And if an issue is encountered, there is always the personal touch available, with the insurer’s own contact centre available to help on the phone or via online web chat.
Digital is a growing trend in almost every industry and is likely to continue gaining momentum especially as generational changes take hold in the customer base and more people look to the internet to meet their needs for a range of products and services – including insurance.
MiWay’s early focus on digital channels is reflected in its 2012 introduction of the MiXpress online portal, which allows customers to get quotes, sign up for new insurance policies and update existing policies. It also recently launched the MiWay Mobile app.
People switch insurance for two key reasons: price and customer service. When an insurer can deliver the required solution at a better price and with excellent customer service, why would you go any other way?
MiWay is an Authorised Financial Services Provider (Licence no: 33970)