Insurance agencies, also referred to as insurance brokers, facilitate the purchase of insurance policies by individuals or business entities. Recently in South Africa, there has been a movement by insurance companies to discard the use of brokers and agencies and allow individuals and business entities to insure themselves directly. Consumers have been quick to respond to this option as the premiums offered by direct insurers are often lower than traditional insurers since no commissions need to be paid to insurance agencies. There will however always be a market for insurance agencies and brokers as many individuals and business entities have complex insurance needs. They prefer to deal with a single broker or agent who can provide them with sound insurance advice and choices. Thanks to this, insurance agencies continue to have a place in the insurance market.