Insurance is something that every person needs . Fear , security and risk buoys the insurance industry and yes The insurance companies are making millions by the day ,not to say there are also losing millions by the day ( as can be witnessed by the recent perth freak storms) . But on the whole the Insurance companies have definitely big fat wallets and now Kmart Wants a piece of the pie.
Kmart vying for the insurance $$
Kmart Australia yesterday started signing up its first few customers for insurance. kmart with its reach all over australia with its many stores is definitely well positioned to tap the vast insurance sector ( specially given that they also have the Kmart auto chain which is Auto related , it might just make getting car insurance much easier)
KMART HAS 251 Auto and tyre stores in Australia
Hardly has Kmart entered the Insurance market , when there are rumors that QBE is planning to enter the Car and Home Insurance sector. Car insurance is a big piece of the pie in the Auto insurance sector and there will be many companies local and overseas trying to get into the action. Merrill lynch reports state that the big insurers IAG and Suncorp get 25% of their profits from car insurance.
So not only Kmart and Coles are set to enter the Insurance sector but there are many other possible entrants lined up like AUSTRALIA POST , VIRGIN and US based Progressive.
Suddenly the competition is heating up in the insurance sector and there can be only 2 outcomes from this
1,More options for us the customers
2.Cheaper insurance ( hopefully )