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Short term Insurance
Saturday, March 1, 2008
Your way

Sanlam, Santam and PSG have joined forces to create a new short-term insurance venture called ‘MiWay’. It evidently builds on the direct marketing ‘outsurance’ concept, but instead does not penalise clients for making claims. It is also an internet-based sales operation.

Its chief executive is René Otto (who was a co-founder of Outsurance, and later CEO of Channel Life). And says he wants to make financial services easier, more user-friendly, transparent and convenient for the consumer. A sort of ‘I did it MiWay.’
He says the company will initially focus on short term insurance, motor warranty, credit life and home loans but aims to offer a full range of financial service products online in the foreseeable future.
“The aim is to continue to evolve as rapidly as consumer needs change,” he says, “developing into a proverbial ‘one stop shop’ for comprehensive personal financial service needs.”
MiWay will offer the customer a full Internet service through which clients will be able to manage their portfolios, including taking out a policy online, so replacing the increasingly criticised call-centre services offered by the likes of Outsurance.
Through MiWay, consumers will be presented with an online hands-on approach in managing their own portfolios. Otto believes that the huge increase in Internet users who prefer to shop, bank and travel online make it imperative for financial institutions to offer products such as short term insurance online to remain competitive.
MiWay provides a ‘MiRewards’ system, which, Otto says, does not penalise clients for claiming, “as is the case with existing cash-back or no-claim bonuses.” As is the case with companies offering cash-back bonuses, clients are also encouraged to have good risk profiles. MiWay believes insurance is there to assist consumers when they have a legitimate claim, not to punish them by taking away their bonus. The bonus is in effect a premium refund for better-than-assumed risks,” says Otto.
Offering multiple products under one roof will allow MiWay to eliminate the need for clients to duplicate information in application forms. It will also allow MiWay to profile a client as a ‘good risk’ when buying a subsequent product — for example, by taking the client’s risk profile on a short term policy into account when determining an appropriate interest rate on a home loan.

Copyright © Insurance Times and Investments® Vol:21.2 1st March, 2008
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