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Outsurance looks to brokers for future growth

By Kayser Baird | Durban | October 30, 2014

OutsuranceHistorically Outsurance has been critical of brokers and have built their model around saving money for their direct customers by “cutting out the middle man” – Now they look set to change their core strategy by adopting the broker model themselves.

Outsurance are advertising for a new recruit to be tasked with setting up a broker distribution model for their Commercial Insurance product, something that is almost certain to be seen as a U-turn on their main value proposition, cut out the middle man and save money.

We spoke to Outsurance today and they confirmed that Outsurance recognised that some of their clients “still want the personal touch” and that they would offer their Commercial Insurance products through brokers from January 2015.

This is contrast to the message on their website which states;

“At Outsurance, we simply don’t see the point of paying brokers fees or commissions. We’d much rather speak to you directly and help you save money in the process!”

The fact that Outsurance is adopting the broker model doesn’t necessarily come as a big surprise. Most countries including the UK and Australia still have short term insurance markets dominated by brokers, particularly in the Commercial Insurance arena. It is not easy for a Direct Insurer to go it alone, particularly for commercial insurance.

If Outsurance now says that broker insurance is better for businesses, then it does pose the question – why isn’t it better for personal policy holder too?

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