Generally, people have perceptions about insurance that hinder them from getting the right policy. Learn about the realities of insurance so that you can make a smart choice for your career, family, assets and business.
Insurance is critical in providing financial stability to your life, family, business and employees should the unexpected happen. Insurance is something that most people understand that they need but deem unpleasant, much like paying taxes. A lot of that is due to misconceptions that can lead to huge risks and losses if not corrected.
As people wade through their Short-Term insurance options, here are a few short-term expectations they may have juxtaposed with the short-term realities they should be aware of when choosing a cover.
Perception: All insurance is the same
After watching a couple of advertisements, it is normal to think that all insurance is the same. It seems like providers offer the same terms, services and promises. So, if insurance is a standard commodity, why not just get the cheapest and save a couple of bucks?
Reality: As a professional, you need something better
As a professional, you need different options for coverage and pricing. After graduation, you are on a growth path and you need an insurance portfolio that reflects that. You will improve your skills, increase your income, move across cities or borders, and even start a business. As you grow professionally, you need an insurance portfolio that caters to you.
PPS is an insurance provider that is run exclusively for professionals and caters to their unique needs. For example, Pro-Insure Business Cover extends to high-risk areas across borders and will grow with you from start-up to practice, and even to enterprise level.
As PPS operates on an ethos of mutuality, profits are steered towards members holding qualifying products. You are extraordinary, so get an insurance provider that recognises that.
Perception: Insurance only pays out on incidents
The basic understanding of insurance is that you pay monthly premiums and the only time you benefit from having insurance is when something goes wrong. The risk could be theft, damage to property or natural disaster, among many things. Sometimes this leads to people seeing insurance as a foreboding omen, which only appears in dark times.
Reality: Receive value-added services and earn Profit-Share
In truth, your insurance does more than paying out following an incident. It is there for you with additional services and perks to make life, work and business better throughout your contract.
If you are covered by PPS Short-Term Insurance, you will get value-added services at no cost or penalty to your coverage. These PPS Short-Term value-added services come with your car and home insurance and include ID protection as well as medical, licence, fine and road assistance.
Also, the short-term insurance options (car and home) from PPS are an integral part of its Profit-Share programme. Remember, PPS operates on an ethos of mutuality, so any profits that it makes go to members holding qualifying products. The PPS Profit-Share Cross-Holdings Booster enables you to leverage your Short-Term insurance holdings to get more profit allocations in your Profit-Share Account.
With the value-added services and Profit-Share Cross-Holdings Booster, your insurance portfolio provides more than risk coverage. You will have access to free services and can build your wealth at no extra cost or paperwork, by simply holding a PPS qualifying product.
Perception: Insurance is time consuming, tedious and rigid
Insurance is a monthly expense that never changes and what you can cover is limited. Not only that but to get started with a provider involves a process that is confusing, long and involves a lot of paperwork. Once you have gone through that process, it is best just to forget about it and continue with your life until you need to claim.
Reality: Insurance is transparent and flexible
Transparency is something that you need in your insurance. You also need a purchasing process that is simple and straightforward. You do not have time to be worried about paperwork and endless administrative procedures.
Insurance providers have been working hard to bring that level of convenience to your life and work. The industry is at the forefront of technology, using automation and artificial intelligence to provide seamless service. So getting new insurance cover is no longer a hassle. Take Pro-Insure Home Insurance which can provide comprehensive protection or a more tailored cover according to your needs.
Technology is making insurance more accessible and cost-effective. Tech advancement is crucial as customers are demanding flexible and personalised insurance products tailored to their risk profiles. According to a PWC survey, 62% of insurance CEOs planned to increase investment in digital transformation in the short term significantly. Other areas of investment by insurers are cybersecurity and data privacy (40%), initiatives to realise cost efficiencies (33%), leadership and talent development (31%), and sustainability and ESG initiatives (21%).
Insurance has also become more flexible regarding its terms. If you or your business need to increase or decrease coverage, your provider can help you with that. Insurance is no longer an expense but a flexible wealth management strategy.
Perception: Insurers dodge when it is time to payout
Insurance providers are money hungry companies that will leave you when you need them the most. It is common to think this, mainly because of the stories read and seen on social media or traditional media channels such as news sites.
In 2020, the industry faced a lot of brand damage due to the business interruption claims that were declined and the ensuing public legal battles. This issue received extensive cover on news sites. Naturally, this led to customers questioning the integrity of insurers.
Reality: Insurance providers payout, a lot
Like most industries, insurance only gets on the news when things go wrong. When things go right, which is most of the time, it is not newsworthy.
When they realised the impact on policyholders’ incomes during the pandemic, insurers offered payment holidays, premium discounts and restructuring of client portfolios. The interventions were vital in helping millions of South Africans who were in financial distress. As such, PPS offers flexible and robust cover through its car, home and business insurance options.
Daily Maverick reports that in 2020, the life industry honoured 434 216 death claims, increasing from 2019, which recorded 317 442 claims. Most of the death claims in 2020 were for funeral policies (266 321), while the rest were for life policies, credit life policies and other policies that provide life cover. The claims resulted in benefit payments worth R522.7 billion received from South African life insurers. To put the figure into perspective, the government provided R335.2 billion for the social development budget for 2021.
You are on a path of growth and it is essential to protect it. For the sake of your career, family, assets and business, get an insurance portfolio that will not only protect them but also grow with them.
PPS is a licensed Insurer and authorised FSP.
Profit-Share is only applicable to Personal Lines policies.
Individual policy Ts & Cs apply.
Please note that the information in this article does not constitute FAIS regulated Advice.