Times are tough and expenses run high. Short term insurance is probably one of the first items on your bank statement that comes under scrutiny each month. Add this to the unlimited amounts of adverts that we are bombarded with daily to switch & save, it comes as no surprise to ask the question: Is it worth having an insurance broker, or should I go direct?
Short Term Insurance Options in South Africa
As per the FSCA there are 56 short‑term insurers in South Africa at this present moment. This group includes a wide spectrum of non‑life insurers, ranging from direct‑to‑consumer insurers such as Auto & General, Budget Insurance , First for Women, MiWay, King Price, and OUTsurance, to traditional intermediated insurers that operate through brokers like G&S Insurance. These broker‑focused insurers include major players such as Santam, Hollard, Bryte, Momentum, and Guardrisk amongst others.
In the almost 40 years that I have been operating in the insurance industry, we have worked with an extensive amount of these insurance players, either directly and indirectly. Ultimately each person and each business requiring short term insurance is different. There are no one perfect option that will suite everyone.
I do however believe that over these four decades, we have built up a pretty good understanding of which company will work with which person and business entity.
Advertising Spent by Short Term Insurance
Before we get to why I believe a professional insurance broker is worth the money, I find it quite interesting to look at the amount of advertising spent on short term insurance adverts.
According to the media monitoring comapany, Ornico’s SA Insurance Ad Spend Report (Q4 2025) and Ornico’s Financial Services Insights (2023), short‑term insurers rank among the highest advertising spenders in South Africa, with the insurance category investing over R1.21 billion in Q4 2025 alone. Insurance had the highest cost‑per‑click (R195.52) and highest cost‑per‑lead (R2,454.36) of all industries in the digital advertising spectrum. OUTsurance alone accounted for 72% of all new executions among major financial brands.
The bottom line is that the competition is fierce, especially in the direct-to-consumers’ market. We hear the switch-and-save adverts almost on a daily basis, but what is the real saving and what do we give up for the initial saving?
Why a Professional Personal Broker Is Worth Having
We all have budgets to make? Life is getting more expensive as you grow older with more responsibilities, so it is just natural to try and save where you can. Cutting insurance premiums goes without saying. However, the true value of short term insurance is often only tested when a claim arises.
A personal broker offers value in several important ways:
1. Professional Risk Advice
Most clients are not insurance experts. A broker can identify risks that a client may not have considered and recommend appropriate cover. And if your broker has got four decades of experience like G&S Insurance, the benefit increase exponentially. For example, we would be:
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- Ensuring all valuables are specified correctly.
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- Highlighting gaps in cover from our own experience.
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- Explaining policy exclusions, which can be a major drawback later.
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- Recommend suitable excess structures.
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- Advising on liability and personal accident cover.
Without professional advice, clients may unknowingly be underinsured or inadequately protected. At G&S our name is of major importance to us and we would not want to risk that.
2. Policy Comparison
Although we have a clear idea of which insurer will work best for your situation, we do believe it is important to compare products from multiple insurers rather than being limited to one insurer’s offering. This means the recommendation is generally based on suitability and value rather than simply selling a particular product.
3. Claims Assistance
From the extensive amount of testimonials that we have received over the years, we know that this is the part where companies like G&S stands head and shoulders above the competition. Isabel, one of our clients were in a motor vehicle accident recently, and wrote the following: “I was in such a flat panic when my collided with another recently. Luckily I have G&S saved under my emergency contacts and they sorted out everything on my behalf. This one experience will ensure that I will never opt to switch!”
Following a loss, many clients find policy wording, documentation requirements, and insurer processes overwhelming. A broker can
- Assists with claim submission.
- Ensures supporting documentation is provided.
- Negotiates with the insurer where necessary.
- Helps resolve disputes.
- Keeps the claims process moving.
As in the event that Isabel described above, we do believe that G&S, as your broker, effectively becomes your advocate during what is often a stressful event.
4. Regular Review of Cover
Life changes continually. You get new vehicles, do home renovations, increased possessions, have a change in income, or your business grows. We do proactive reviews of your cover and helps ensure that your policy remain appropriate as your circumstances change.
Going Direct to an Insurer
Direct insurers market themselves on simplicity and cost savings. The process is often quick and convenient, with policy setup completed online or via a call center. Advantages may include convenience, immediate quotations, potentially lower premiums, direct communication with the insurer.
However, the responsibility for selecting appropriate cover rests almost entirely with the client. If a client misunderstands a question, omits information, or chooses inadequate cover, there will most probably be consequences at claims stage.
As mentioned earlier, each person is different and each situation is different. There is never a one-size-fits-all scenario, but I do believe with my whole heart that myself and the team at G&S Insurance, is committed to ensuring that you are covered at the best possible option available to you.
What’s more is that we can offer you the full range of life insurance, wealth building and even estate planning for yourself and your business. All in one convenient service.