Short-term thinking

Johannesburg - If you've ever wondered what exactly is meant by the term "short-term insurance", you're not alone. But new kid on the insurance block iWYZE has clarified things by changing the term to "valuables insurance", as part of a bid to get a foothold in the saturated market.

"We have simplified all client communication including policy contracts," explains CEO Willem Smith.

To do this, Jae Brits, creative director of the ad agency Chillibush, called in a team of lawyers to wade through insurance jargon and convert it into plain language.

One misconception, says Brits, was that some respondents said the term "covered something over a short term such as three or six months". The jargon also kept many people from a real understanding of exactly what they were covered for.

The language was intimidating and few went in-depth into what was being offered, hoping instead they were getting what they signed up for.

This unease was reflected in the TV ad that launched iWYZE (a partnership between Old Mutual and Mutual & Federal). In it, people are seen doing things with one arm, the other behind their backs with fingers crossed. The only family operating with ease is covered by iWYZE.

The research also revealed a large mass market that was uninsured because of lack of knowledge. According to Smith, mass market penetration is less than 10%. This is the gap the insurance provider is looking to close. Brits adds that LSM 6-8 has been the focus, but the response "has been great from LSM 4".

Brits explains that the next part of the online strategy is to extend the plain language policy even further. "We want people to understand that some of the things they think are extras and presented as such by insurers, like roadside assistance, have actually become standard."

 - Fin24.com