Dial Direct Takes On Insurance Brokers |
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August 20 - The IBC (Insurance Brokers Council) has accused direct insurance providers of false advertising in the sense that cutting out insurance brokers saves the public money. The IBC would have you believe that companies like Dial Direct spend your premiums on advertising, and if the premiums are lower that's because your coverage is lower as well. The IBC also claims that companies like Dial Direct also pay commission to their in-house sales people so one cannot say that you save money by not paying commission to an insurance broker. But this argument reeks of sophistry to us, and shows that the IBC has a case of sour grapes. First of all, companies like Dial Direct pay their staff a once-off commission for a sale. It is a certain % of your first month's premium. On the other hand, insurance brokers earn residual commissions for the life of the policy! Every single month they take a cut from the insurance company. When you assume that your broker has your best interests at heart keep in mind who really pays his bills. His income is derived from the insurance company, he is not some disinterested, objective observer. So, why not simply go straight to the company itself and deal with them? Forget about whether or not it is cheaper - it does appear to be substantially cheaper to insure your car and home with dial direct in South Africa - but surely it is a lot more convenient and makes sense when the time comes to make a claim? Think about that the next time direct insurance is tackled by insurance brokers - they can take them on and beat them at their own game. Related Insurance Articles: * Santam Rated Primary African Insurer for 2006 * Dial Direct Bucks Back Bonus Explained * Dial Direct Insurance Policy Application Questions * Dial Direct Rewards Safe Drivers With Bucks Back Bonus * SA Now Part of Ace Insurance Network * Dial Direct Protects Your Possessions * Low-Cost Insurance Product Launched * Dial Direct South Africa Covers Far More Than Cars 
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| 3/14/2010 7:06:19 AM | |||||||||||||||||||||
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