A MORE COMPETITIVE MARKET COULD MEAN HIGHER PROFITS FOR SA INSURERS
Wednesday, March 4, 2015
Economics Online defines a competitive market as one in which large numbers of businesses compete with each other to supply to the needs of a large number of consumers. With more and more people using the Internet to compare products and services and shop online, online comparison sites provide the platform for brands to move into a more competitive space.
“Although a competitive market poses the threat of decreasing prices, specifically in the South African insurance industry, there are positive factors as illustrated by Salisbury University’s Journal of Business and Economics Research*,” says Derek Wilson, Head of the online insurance aggregator, Hippo.co.za.
The research shows that whilst online product search and comparison facilities allows for greater competition in terms of price, it also encourages improved reputation and reliability from competing suppliers.
This is due to consumers often placing a higher value on reputation and reliability than they do on price. Greater value added services and benefits can therefore protect suppliers from direct price competition.
“This is great news for service providers entering into the online comparison space as it gives them greater access to the market, and as a result, they may attain higher profits,” says Wilson.
“At Hippo.co.za we provide instant quotes from multiple insurers so that consumers can compare prices and benefits and select the provider that best suits their needs. We also ensure that we look after the privacy and information of consumers and provide them with as much information as possible from our partners,” says Wilson.
“Hippo.co.za is looking to add more insurers to join the panel and we are currently in talks with big name insurers,” confirmed Wilson, “Dotsure.co.za Insurance was recently added to our panel.”
Established in 2007, hippo.co.za is South Africa’s leading comparison website that helps consumers save money by comparing a range of SA providers across financial products such as car insurance, home insurance, life insurance, medical and more. Hippo is free to use and saves consumers the time and hassle of shopping around for the best deal since the Hippo.co.za website instantly retrieves real-time quotes from the different providers using the latest Internet technology. At least 8 out of 10 people could save an average of R427* per month on their car insurance.
Hippo.co.za makes money by simply charging its partners a fee when a customer chooses to find out more about their products. The results consumers see, and the order in which they are presented, is in no way influenced by the fee hippo.co.za charges its partners or any other factors other than the price of the product being compared.
Hippo Comparative Services (Pty) Ltd is an authorized financial services provider (FSP number: 16357).
**Based on a representative market research survey conducted by Kaufman Levin Associates, on behalf of Hippo.co.za in May 2014. Risk Profile Dependent.