A FIRM that allows people to bypass agents and buy insurance directly online or over the telephone was launched yesterday.

DirectAsia.com will sell car, travel, home and personal accident insurance policies without clients paying the usual fees and commissions. The site will go live next Monday.

Chief executive Andrew Byrne said the service, which responds to complaints in the Singapore market of escalating costs, will give buyers a chance to 'pay much more competitively (and get) fairly priced premiums'.

Agents take between 10 and 50 per cent of the premiums charged to customers, which is 'a big margin going to a middleman', said Mr Anthony Hobrow, chief executive of the Whittington Group, the global insurance investment business that owns Direct-Asia.com.

He said there was a particularly high level of dissatisfaction among consumers buying vehicle insurance here.

Average car insurance premiums here are $1,250 to $1,300 a year, said Mr Byrne, adding that at least $190 goes in commissions.
In an effort to better match pricing with risk, drivers with good track records and merit certificates will benefit from rates that are about 20 per cent lower, said Mr Byrne.

DirectAsia.com has its own inhouse claims services function operating around the clock to help claimants. Mr Byrne said the firm will allow monthly instalment payments at no additional costs and policies will be 'clear upfront' on what is and is not covered.

The Whittington Group, which is based here, intends to expand the business across Asia with Hong Kong as the next market.

Mr Byrne said similar firms to his will start up, adding that 'there will be other direct insurers that come along, not able to resist the tide of change'.

Aviva opened its online medium for car insurance in April. It has since offered 40,000 quotes online and seen traffic on its website increase over 250 per cent, said Aviva Singapore chief executive Simon Newman. Aviva also offers health, life, travel and home insurance online.

NTUC Income offers travel, home, personal accident and foreign maid insurance on its website.

Some are less optimistic about the online medium. One industry player said: 'Even for consumers, the marginal savings will not be attractive enough to be a viable proposition to buy online', as clients prefer talking to someone they know.