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Africa has always been regarded as a continent that has the potential to offer significant growth opportunities. However, this comes with a certain amount of risk as the country is still largely regarded as an unknown. This is driven by issues such as bribery, corruption and onerous regulation.
The South African financial services industry is presently facing many challenges, which it needs to find solutions to. And fraud looks like it is one of the most pertinent of these challenges. The apparent ease of which certain brokers are able to scam money out of their clients is a bad reflection on the industry and is an affront to credible brokers who make up the majority of the industry and will now be looked at with a certain measure of scepticism.
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.
One cannot help but feel sorry for the South African consumer. Not only do we face the challenge of high petrol prices, a workforce that sits the whole year eagerly anticipating strike season and paying exorbitant prices for imported goods because of high import taxes, now Gauteng residents are being bullied into paying e-toll taxes, as well.
Do you think short-term insurance broking will survive the AI plus humanoid robotics age?