Wednesday, September 12, 2018

Investec Life reveals big shift towards insurance online in SA

Investec Life says its focus on innovation has helped the company issue cover to the value of R1 billion in the six months since its launch in 2017.
“The stark reality is that we have a life insurance industry faced with a fundamental need to change. If it does not evolve to offer a more compelling proposition then any group with its own footprint within a meaningful client base can – and likely will – move quickly to close the gap with financial solutions that clients feel better meet their personal needs,” said Investec Life CEO, Michael Goemans.
“The SA life market is an innovative and dynamic one. While it hasn’t always been as client centric as it could be, reduced complexity and increased levels of client personalisation and flexibility with the strong application of technology will be what defines a compelling proposition,” he said.
“We have spent a significant amount of our focus looking at how we change traditional life products to better suit the private client. The flagship of the Investec Life product range, Mortgage Protection Cover challenges market convention with premiums that reduce every month as clients pay off their home loans. Clients only pay for the cover they need, freeing up savings that can be invested elsewhere,” Goemans said.
Investec Life noted that more than 65% of clients took out insurance end-to-end online underscoring the trend towards personalised, self-directed services.
Clients accessed the online application system at some interesting times – early mornings, late at night – even Christmas day.
It said that the biggest product uptake has been on mortgage protection cover – one of five offerings in the Investec Life suite of products, along with life cover, disability, income protection and severe illness Cover.
In one case, a 41-year-old client was able to take out R30 million in life cover on the Investec digital platform within 22 minutes.
“Using the Financial Needs Analysis tool, and thanks to the automated underwriting functionality that doesn’t require additional medical tests for clients that are generally healthy, the client was able to avoid all of the traditional life insurance pain points and make the purchase by themselves, online.”
In another case, a client took out R6 million in Mortgage Protection Cover online in 3 minutes, Investec said.


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