This figure is set to grow in the coming years making financial aggregators a force to be reckoned with.

Amanda Thomas, general manager of online insurance aggregator site hippo.co.za says that insurance aggregation in South Africa has gained considerable momentum due to the speed and convenience with which they can deliver relevant, consolidated insurance quotes for comparison.

In South Africa, 35% of insurance policies are initiated online via either an insurer’s website or an aggregator whereas five years ago, only 5% were.

While the direct insurance channel is constantly being bullied by brokers, it’s fast becoming the channel of choice for consumers.

While doomsayers may argue that aggregators provide ‘stripped down’ quotes to attract consumers, Thomas begs to differ.

“Before you receive insurance quotes to compare from hippo.co.za, you’ll complete all of the traditional underwriting questions to determine your risk profile.  Thereafter, you’ll speak to a consultant to complete the sale and if there is a difference in premium, it will be minimal.  The same could happen in traditional broker market,” notes Thomas.

Whether or not aggregation is your cup of tea, it’s here to stay.  “At the end of the day, until you have shopped around, you can’t be sure that your insurance needs are being properly serviced at the most competitive price.  An aggregator is without question the simplest, fuss-free way to shop for insurance,” says Thomas.