Advertise Here


IconAssociations & Institutes
IconBBBEE Consulting and Verification Agencies
IconBusiness Chambers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCall Centre Outsourcing & Sales
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconEducation and Training
IconHuman Resources
IconInformation Technology and Software Partners
IconLife Insurance Companies
IconLife Insurance Products
IconOutbound Sales
IconPolicy Administration
IconPolicy Trading
IconRe-insurance Companies
IconRegulatory Authorities
IconSales and Sales Management
IconSocial Grants (Government)
IconSurveys and Research
IconTraining Courses & Workshops
IconWellness Programs
  Subscribe To »

Beyond bancassurance - Discovery Life's view






Company Listing: Discovery Life Ltd »
In the 1990s, bancassurance was seen as the way forward for life companies to grow their books and build market share. The idea was a simple one: life companies would take advantage of their relationships with banking groups to sell product through the banks’ branch networks and sales teams. The bancassurance model is essentially a distribution model, and herein perhaps lies its weakness. Even where it works well, it is simply a case of selling existing product to a larger customer base, with often little or no thought given to the actual needs of the customers. More and more one is seeing a need to look at a new model, one which incorporates the needs and interests of policyholders more effectively. We see health management as an exciting basis for the model of the future, since a person’s health risks are intrinsically attached to one’s life cover needs – a healthassurance model, as it were. I will return to this shortly, but first we need to look more closely at some of the background to the issue. Recent developments in the life industry have highlighted the failure of the industry as a whole to put consumer needs at the centre of the life assurance model. Rulings by the pension fund adjudicator, for instance, have highlighted consumer unhappiness with the appropriateness and value-for-money of many products offered to policyholders. This has led the industry to reconsider its practices. Not surprisingly, the recent PricewaterhouseCoopers survey into the insurance industry has placed consumerism as an increasingly important driver of change for long-term insurance companies, behind regulation and the Financial Services Charter. It would come as no surprise if consumerism grows in importance. As stated above, bancassurance works well as a distribution tool, but it cannot address the underlying issue of products that address consumers’ needs. The model of the future for life insurance companies needs to be one which incorporates client needs in a dynamic and innovative way. Ironically, this new approach is not new at all, but rather a return to the life industry’s roots. Life insurers used to be good at life cover, applying their skills in product design in absorbing and reallocating risks. Life companies need to go back to this approach, but apply new techniques and skills to it, in order to meet client needs in a dynamic way. Indeed, this approach has been at the heart of the best innovations in the sector in recent years, such as disability and dread disease cover. Life companies now treat dread disease as a form of accelerated life cover, and price it accordingly – to the benefit of policyholders. Equally, applying this approach to retirement products – for instance applying unneeded life cover at retirement to boost retirement income – can address the very real need to improve the lot of policyholders. Many of the risks a person will typically seek life cover for – death, disability, education needs, severe illness and retirement needs – are all impacted by a person’s health. And there are few issues as emotive and fundamental to an individual than one’s health and that of one’s family. This is where the “healthassurance” model comes in, since it plants health management foursquare at the centre of the life offering. Our experience has shown that participation in a wellness programme by a policyholder reduces that policyholder’s risk of mortality or morbidity by a significant margin. It makes sense then to encourage policyholders to look after their health and to make it worthwhile – in the form of lower insurance costs or improved benefits – for them to do so. Healthassurance is already working well in winning back the confidence of the consumer. And it presents a wonderful opportunity for the industry to grow and add value for policyholders.
Source: Herschel Mayers - CEO Discovery Life
« Back to previous page Print this page » |

Breaking News »

SANDWICH PANELS: A Burning Issue - Understanding the Risk

Sandwich Panel related fires have resulted in major property damage and business interruption losses over the years. What are Sandwich Panels? Sandwich Panels or Composite Panels are structures made ...
Read More »



With a pay-off line 'In it with you' the insurer says the time to rely only on just its innovative heritage is gone. It’s time to evolve, to show up better, to connect more and truly be a life partner ...
Read More »


1Life research: South Africa’s women are financially savvy with more women having life cover, and keeping it, than men!

This Women’s Month, 1Life’s research celebrates South Africa’s women by demonstrating that they are financially savvy and leading the way. The research shows that 12% more women have ...
Read More »


The long-term effects of COVID could affect South Africans for years to come

A report commissioned by Insurer Liberty suggests the long-term health effects of COVID-19 could mean drastic changes ahead for many South Africans. Meanwhile, the medical and financial services industries are ...
Read More »


More News »


Healthcare »


Investment »


Retirement »


Short-term »

Advertise Here
Advertise Here

From The Glossary »


Double Indemnity:

An additional benefit included in, or added to, a life insurance policy providing for payment of an additional death benefit in event of death as a result of accident. See accidental death benefit.
More Definitions »






Contact IG


Media Pack


RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2020. All Rights Reserved.