Did you know that insurance companies can differ wildly in how they deliver the various types of insurance? Alex explains and points out how to find your ideal insurance match.

Similar to mortgages, where every bank has different products and a different strategy depending on their target market (e.g. think of banks that cater for farmers), so too insurance companies differ in the products they offer depending on their target market. This is important when it comes to the fine print of your cover and how it fits your own needs.

However, before we address that, let’s remind ourselves of the key types of insurance and then we can talk about how they might differ between companies. So, the biggest distinction we should make is between these two insurance categories: Personal Risk Insurance and Fire and General Insurance.

The first category (Personal Risk)  allows you to insure your risks relating to your own person. This works through various insurances like:

• Trauma Insurance (pays a lump sum on the basis of a diagnoses);
• Income Protection (monthly benefit paid when you are unable to work, through illness, sickness or an accident);
• Life Insurance (lump sum payable upon death to cover debt for dependants);
• Medical Insurance (pays for treatment in a private hospital, bypassing waiting lists).

 The second category (Fire and General Insurance) covers (in broad terms) risks associated with the things you own. This may include, amongst others:

• Travel Insurance;
• Fire Insurance;
• Car Insurance;
• Home Insurance;
• Contents Insurance.

 Most insurers specialise in either Personal Risk or Fire and General Insurance, and within this framework, each and every insurer positions itself differently to attract their preferred clientele.

 Some insurers are more attractive for small/medium business owners, others for expanding families, and others are focused on young professionals with plenty of growth potential. Mostly they differentiate their product by offering additional benefits that are either built-in to the insurance policy or can be added to it.

Every insurance company has different pros and cons to it. As insurance advisors it is our job to make sure we get the right insurer for the right person in order to cover their risks best. Although Velocity Financial specialise in Personal Risk insurance we can help you get your other insurances sorted as well.

 Alex Barendregt is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request.