Short-term insurance users are remarkably savvy when it comes to Internet usage, according to a recent report compiled by Analytix Business Intelligence.
Based on AMPS 2010 data, the report explored the consumer segment of South Africa's short-term insurance providers and underlined the differential Internet usage patterns between insurance policy users and non-users. This access is invariably linked to the LSM status of users and non-users, with the affluent LSM 9-10 segments occupying the majority (72%) share of the local short-term insurance market.
The causal link between LSM status and telecommunications usage is well established, with the lucrative upper LSMs possessing far greater access to and familiarity with ICTs. Yet, among all South African adults, only 13% had accessed the Internet in the past seven days compared to 45% of short-term insurance users. These divergent access patterns are indicative of the financial fluidity between lower-LSM South Africans, who cannot outlay the monthly capital required for insurance cover, and upper LSM short-term insurance users, whose usage of online media is a function of their high disposable incomes.
When segmented by the industry's leading brands, closer analysis reveals that Internet access was highest among Auto and General (55%), Hollard Insurance (52%) and Outsurance (49%) customers.
Short-term insurance is traditionally afforded only by the upper LSMs, and for this reason, a cluster of hobbies emerge that are relatively alien to the average South African. E-mail, online search, research and online banking were the most popular Internet activities among short-term insurance customers, signifying a diverse engagement with online media. Interestingly, the use of social networks was highest among Outsurance customers, compared to other short-term insurance companies, which hints at a younger user base of digital natives.
Short-term insurance users' engagement with digital media represents a high degree of Internet access and digital literacy in a nation that is hampered by inadequate provision and knowledge of ICTs. The report provides a unique opportunity for companies seeking to understand the customer profiles of short-term insurance products, while offering a comprehensive analysis of a consumer market that is of value to companies in the financial services and insurance sector.
The full report, entitled: “South Africa Brand Report: Customer Profile of Short-Term Insurance Companies” is available for purchase for R9 000 (excluding VAT). Simply visit www.analytixbi.com to view the brochure and order form or contact us directly on (021) 551-7066.
The report addresses several key questions that are pertinent to an understanding of this competitive sector:
* Who are the key players and brands in the short-term insurance market and how are they currently positioned?
* What are the important consumer and market trends that should be included in your business strategy in order to expand your market share?
* Who are the users (and non-users) of short-term insurance policies segmented by age, gender, affluence (LSM), life-stage and geo-demographic profiles?
* How should you engage with consumers in order to address their divergent lifestyles in terms of media usage, sports and music interests?
* What would be the most effective media channel in order to communicate to - and engage with - these customers?
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