Although no information about trends in buying car insurance online in South Africa could be obtained, we can take a look at local trends in e-commerce.
e-COMMERCE IN SOUTH AFRICA – WHAT IS THE TREND?
Buying car insurance online forms part of e-commerce, and thus looking at the growth trend of e-commerce in South Africa will give you an idea of how likely online shoppers will buy online car insurance.
e-COMMERCE IS GROWING AT A PHENOMENAL RATE
A Fin24 article of 22 February 2017 says that e-commerce in South Africa is growing at an explosive rate. A large increase in e-commerce was attributed to entry of cell phones into the market place, as well as much cross-border shopping.
SOUTH AFRICAN ONLINE SPENDING FORECAST FOR 2018
South Africa’s online spending is estimated to exceed R53 billion by 2018. Much of this will be spent on cross-border buying, involving the US, China, and the UK.
AFTER SOME INITIAL SLOW GROWTH, ONLINE SHOPPING IS SET TO SOAR
According to a Fin24 article, online shopping in South Africa was growing slowly, but over the last few years, all indications are that growth will soar beyond expectations. Research has shown that 58% of all online adults in South Africa spent a staggering R37.1 billion on online shopping during 2016.
WILL THE INCREASED MOMENTUM IN ONLINE SHOPPING CONTINUE?
It is predicted that the recent growth trend will continue. In a survey, 53% of interviewed online adults have indicated that online spending in 2017 will increase even more. Of these 53%, 84% ascribe the continuing rapid growth to the enjoyable ease of shopping online. Another 38% say that this growth is due to people wanting to save more, and another 36% attribute this growth to increases in their disposable income.
2018 TREND IN CELL PHONE COMMERCE
More and more South Africans are using their cell phones to shop online, resulting in a spend of R9.5 billion between 2015 and 2016. This spending trend is expecting to continue, resulting in an estimated increase of 123% by 2018.
SOME ADVANTAGES OF BUYING CAR INSURANCE ONLINE
Online purchasing of car insurance is made available by many insurance companies in Kenya. The article asks what can persuade traditional buyers of car insurance to go online instead?
BUYING ONLINE CAR INSURANCE IS CHEAPER
Buying car insurance online saves you time, as you don’t have to make an appointment and physically drive to an office. Online car insurance can also be also cheaper because no insurance agent is involved.
EASY TO COMPARE ONLINE QUOTES
By going online, it doesn’t take long to compare different quotes on car insurance. You can obtain reviews on online purchases of car insurance, as well as consider any views expressed by clients.
ONLINE PURCHASING MADE EASY BY A CUSTOMER-FRIENDLY INTERFACE
The process for obtaining online quotes is made easy by following a straightforward procedure. All financial transactions are safe and secure.
YOU CAN PURCHASE ONLINE CAR INSURANCE AT ANY TIME THAT SUITS YOU
Everyone is so busy these days, so there is little time left for buying car insurance. It’s so much easier to buy car insurance online from the comfort of your own home. And you can make a purchase even at midnight, if you want to.
IMMEDIATE ACCESS TO INSURANCE DOCUMENTS AND TO MAKING CHANGES
Buying car insurance online means you can print documents straightaway. Any changes you would like to make to your policy can also be done online.
WHAT HAPPENS IF YOU HAVE ANY QUESTIONS?
When in the process of buying online, you may have some questions. Car insurance companies provide good telephonic support for any such queries.
SO WHERE IS PURCHASING OF ONLINE CAR INSURANCE GOING IN SOUTH AFRICA?
The way online shopping is exploding in South Africa, is a good indication that it bodes well for online purchasing of car insurance. At the moment, the car insurance industry is ‘stuck’ with 30 – 35% of insured motorists. Once third party car insurance is made compulsory in South Africa, growth in both traditional and online purchasing of car insurance could explode. The one of the restrictive issues for buying insurance online in South Africa is that not everyone has a computer and access to the Internet, although just about everyone has a cell phone.
It would be interesting to see what percentage of the total of 30- 35% of insured South African motorists have bought car insurance online.
WHY NOT BUY AFFORDABLE CAR INSURANCE WITH PMD BY USING THEIR ONLINE INSURANCE PURCHASE PLATFORM?
You’ve read how beneficial it is to buy car insurance online. PMD has designed an Online Insurance Purchase Platform to make it easy and fast for you to buy their affordable car insurance. You can make a purchase at any time you like, and modify the policy to suit your requirements. But you are not alone – if you have any questions, you can resort to a call-back facility or make use of the audio and video materials.
Disclaimer:
This article was prepared by Eric Sandmann in his personal capacity. The views and opinions expressed in this article are the author’s own and do not reflect the views and opinions of Prime Meridian Direct (Pty) Ltd, FSP41040 (car insurance and life cover products). The views and opinions in the article should not be attributed to anyone but the author unless expressly stated. Nothing in this article should be relied upon as advice, this publication is presented for informational purposes only. No person should act or refrain from acting in reliance on any information found in this article, without first obtaining proper financial advice from the appropriate professional. The author makes no claims, promises or guarantees about the accuracy, or completeness, of any information linked from, referred to, or contained in this article. The author reserves the right, to edit and change the content of this article.