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Brokers are invited to join the King Price expansion

21 October 2013 Jonathan Faurie
Jonathan Faurie, FAnews Journalist

Jonathan Faurie, FAnews Journalist

Gideon Galloway, CEO, King Price

Gideon Galloway, CEO, King Price

After spending a year establishing itself as one of South Africa’s fastest growing short-term insurers, King Price made the decision on 1 September to diversify its insurance model by expanding it to now also include the broker market. The company reports that the main motivation behind this is that King Price feels that consumers need choice and the constant demand from numerous brokers could no longer be ignored.

 

"Brokers will add a lot of value to our business model as we can now enter a market that we previously did not have access to. We want to make insurance affordable for everybody. Some clients just prefer to work through brokers,” says CEO Gideon Galloway.

Since the company's launch around 14 months ago, they have gained more than 35 000 policyholders; covering car, buildings and all other short-term insurance items. Galloway adds that the company is still growing at an average pace of more than 4 000 new policies per month.

Benefits to the broker?

Brokers throughout South Africa, who are registered financial service providers (FSPs), can now apply to become part of the King Price family. "There are many reasons why brokers should join us,” says Galloway. "Firstly, we offer a unique insurance pricing model where we decrease car insurance premiums monthly, as the value of the car depreciates. And secondly, we have low attrition rates when compared to the rest of the industry.

He adds that incorporating a broker based model with its existing direct model is an easy fit. He points out that commission will be fairly structured according to industry regulations. "There will also be no cross pollination between our direct and our broker driven business” says Galloway.

Brokers will be backed by the benefits of a traditional broker support service that is enhanced by modern technology. Business will mostly be done telephonically and King Price will handle all of the administration, the broker will have no extra paperwork.

No change in price

When King Price launched in 2012, it launched with the premise that insurance premiums would decrease monthly as the value of a car depreciates. While this is a model which is suited towards a direct insurer, it might pose a problem with a broker centred model. However, Galloway says that higher closing ratios and extremely low cancellation rates will more than counteract this.

He points out that the client will pay the same rate as when he goes direct. "If a client's financial affairs have been handled by a trusted broker for many years, why should he or she deal with anyone else? We'll rather bring cheap premiums to clients by making it available through brokers too. For us, it makes no difference whether we're paying for advertising or paying brokers' commission. As long as our clients get the best premium possible,” says Galloway.

Editor's Thoughts:
By following this model, King Price will be joining the ranks of a number of other insurers who follow a direct and broker led distribution model. This diversification model has proven to be fairly successful in the past, can King Price follow suit? Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts jonathan@fanews.co.za.

Comments

Added by Samtosh, 02 Feb 2018
Hi please guys think kingprice insurance they are not what they say they are I am with kingprice from 2014 never in my life to here bull s**t from kingprice insurance all my years my insurance was paid fully up until today they service is bull s**t they say you someone is gonna call you shortly but they never call I got involved in a accident in December one guy has bang me at a stop stress from the back of my car it was every bad my sound system at the was damages my car is fully covered today they tell me sorry they can't help me over one month is gone they come back to you what bull s**t is this guys please think about kingprice please look at other insurance but not kingprice
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Added by ryan, 26 Nov 2013
Thanks for the info. Funny, I was just reading a review about king price (http://carinfo.co.za/king-price-insurance/) and there they also talk pretty positively about them. According to this review their hellopeter ranking is like 3 compliments to each complaint...that seems really good for the insurance line of work doesn't it? anyway, i'm going to contact them and if their prices are decent I might just give them a try.
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Added by Petro, 25 Oct 2013
Please can a Consultant contact us
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Added by Fergus, 24 Oct 2013
Is King Price a member of the South African Insurance Association or are they still operating outside of it?
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Added by Broker department, 22 Oct 2013
Please forward all enquiries re King Price Brokers to brokers@kingprice.co.za
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Added by Thomas, 21 Oct 2013
Is this a oxy moron or what??????

Are their insurance products available directly or through brokers…
Insurance companies, who make use of brokers to recruit new clients for them, pay them substantial sums of commission and incentives. These insurance companies’ income is generated from insurance premiums paid by their clients. It is therefore safe to assume that the consumers are actually paying the brokers commission through increased premiums. It would make much more sense to directly deal with insurance companies like King Price Insurance, where we underwrite all of our own insurance products.

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Added by Thomas, 21 Oct 2013
Can King Price contact us for further discussion re a contract?.
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Added by Roshan Singh, 21 Oct 2013
We would like to know what are the excesses and the claims process.
If a broker consultant can contact us, we would appreciate it.
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Added by Karin van der Berg, 21 Oct 2013
We would like King Price to come and see us to go through their model with us and our Short term Directors.

kind regards
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