2. A&G and Direct Line: 1984 Initial reaction from intermediaries negative Considerable growth for direct players world-wide since 1984 Direct limited to personal lines Old Debate

3. Most players today accepts it boils down to the preference of the end-user Some prefer the role of the trusted intermediary Others prefer the direct way, whether telephonically or over internet Debate Matured

4. General perception: direct is cheaper because no broker commission Our experience: intermediary often cheaper If direct is not cheaper, why does a large component of the market go direct? Possible answer: direct insurers create perception of being cheaper through massive marketing campaigns Who is the cheapest?

5. Direct insurers claim they rate and underwrite more scientifically Therefore cheaper when risk is lower, and vice versa High underwriting margins of direct insurers lend credibility to this claim Is it a case of convenience rather than premium? Some prefer dealing direct, others through intermediaries Who is the cheapest?

6. Generation X and Y: not loyal to existing brands Want instant gratification Internet, mobile and telephone more conducive to instant gratification Technological advancement enables direct marketing to young and old Marketing Trends

7. Direct Growth in Market Share

9. Both parties claim they do Intermediary: scan the market, structure best package, look after customer’s interest at claims stage Direct: offers speed and convenience and sometimes price Are there objective indicators? Who delivers the best service?

10. Ask Afrika Orange Index Awards

11. Hellopeter.com League Tables

12. Ask Afrika – excludes large intermediaries Hellopeter.com – direct insurers can “direct” customers to the website Inconclusive

13. Room for both The more complex the portfolio, the more room for advice from intermediary Less complex – one home and two cars – more room for direct insurers Finally: personal preference of end-user The winner is: the end-user! My View

14. Room for both The more complex the portfolio, the more room for advice from intermediary Less complex – one home and two cars – more room for direct insurers Finally: personal preference of end-user The winner is: the end-user! My View

15. Thank you