In uncertain times, insurance becomes one of those services that seems to come to the fore. As well, with the economic downturn, and the petrol price seeming to rise inexorably, price-conscious consumers also start looking at how to make their money go as far as possible.

Perhaps that is why we are seeing a number of innovative insurance and fintech solutions emerging this year. One of the latest of these to launch is InsureTech startup BetterCompare.co.za.

In a nutshell, the startup offers users a new way to compare top car insurance rates from different insurers and compare them side-by-side

Bringing the competition

The company stresses that it is neither an insurance broker nor an insurance company, but rather is a free to use insurance price comparison service that “helps give consumers the control to find their own insurance partner in their own time.” The company further elaborated that the service uses the latest digital technology to retrieve quotes directly from the various insurers’ rating engines. This, explained the company’s MD, Derek Wilson, is intended to help save users time and hopefully a lot of money on their premiums each month by helping them find the best deal for their unique profile (personal, car, usage, etc.), quickly and easily without having to call around for quotes.

Users can get quotes online or via the Better Compare call centre by requesting a Call Me Back on the website.

“All car insurance companies price differently according to their own unique rating calculations and business model. Every shopper too has their own unique personal and car profile, that will be different to the next person,” explained Wilson. “In addition, the market keeps changing, such as car values. So, no two car insurance quotes are ever likely to be the same. Therefore it is probably always better to compare at least three quotes,” he advised.

Some things in life are free

The business strategy of the company is interesting, particularly as it is both free to use, and free to insurers wishing to market their products on the platform. Rather than being supported by advertising, Better Compare earns a marketing fee from each insurer when they introduce a new client. Wilson stressed that this fee does not influences the prices quoted on the platform.

Indeed all prices that are quoted are identical to would consumers would receive if they viewed the insurers directly. Rather, the value proposition lies in enabling users to more easily compare one insurers’ rate to the next.

As with any financial related product though, or online portal, security is a major issue. Thus the company reassured that its “strong website” and data security protects its users by supporting Encryption Everywhere - HTTPS on every page. Addressing the privacy concern, it also assured that visitors’ data will neither be shared, nor sold.

Race to the top

To us, the exciting prospect introduced by the start-up is what impact increased competition could have on insurance rates in general. Indeed, for insurance companies that are being more readily compared to their competitors, it seems likely that the race to offer an even better rate than the next insurer would likely accelerate.

“In an increasingly competitive marketplace insurers are looking at new and innovative ways to protect and indeed grow a profitable client base. As consumers look to digital channels to research, shop and buy financial products, Better Compare is uniquely positioned to help connect clients with insurers,” concluded Wilson.