The growth of car insurance services in South Africa
Car insurance services in south Africa have grown to such an extent in last ten years that the market is barely recognisable, there are now so many new players that the old providers of car insurance services in south Africa are being forced to fight tooth and nail to hold onto the customers that they have.
The new companies like OUTsurance Insurance provides car insurance services in South Africa have come into the insurance market very aggressively and they are not scared to rattle a few cages. Many of the new insurance companies that have come along recently offer customers the kind of deals that make their competition nervous, things like offering to match any premium which is lower.
This is good enough on its own, but when you add the fact the these car insurance service providers also offer to give you a cash reward if you can beat their rates, you have a buyers’ market that gives all competitors an even chance of gaining the new business and stealing business away from their rivals.
The rise of online insurance quotes has meant that advertising budgets of the companies, who were the traditional providers of car insurance services in South Africa, have had to be completely reworked. The old firms, who used to rely so heavily on their names and the prestige that went along with them, suddenly find themselves up against newer, hungrier car insurance providers who do not need to spend millions on fancy building to impress customers.
The newer insurers just need to have the backing of a reputable financial house and a good website, to be able to compete at the highest level and since we live in what is fast becoming a global village, it is not unheard of to have a south African car insurance company backed by companies in Europe and the cyber age has meant that IT boffins are now a dime a dozen. This all adds up the fact that the normal barriers that kept new players out of the South African insurance market are now becoming less and less important.