CONSUMERS ARE DRIVING DIGITAL DISRUPTION IN LIFE INSURANCE

THE BUYING preferences of consumers are changing radically and traditional life insurance providers are battling to keep up with the pace of change in consumer behaviour.

Forty-four percent of life insurance quotes generated on FNB Life’s digital channels last month were processed after hours when traditional customer service channels were closed. In January, FNB Life generated more than 20 000 quotes worth more than R35 billion of life insurance cover on FNB’s digital channels.

It’s vital that life insurance providers take full advantage of technological advances to distribute life insurance products to consumers effectively. Consumers have the upper-hand to force providers to accelerate the pace of change, and we are already seeing this through the consistent growth in our digital interactions on life insurance products.

The following consumer-driven trends are forcing traditional life insurance providers to embrace digital disruption:

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According to GMSA, which represents the interests of mobile operators globally, South Africa is a fast-growing market in southern Africa, with 98 million mobile connections. This puts pressure on life insurance providers to enable access to life insurance rapidly through convenient mobile channels.

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Rising mobile penetration. Smart-technology adoption.

The swift adoption of smart technologies is one of the hallmarks of the modern era. Smart technology provides consumers with real-time data that may require them to constantly review decisions about their lives, including life insurance.

◆ The digital era has enabled consumers to do most things on their own and all they require is a reliable platform. While still behind, the life insurance sector is ripe for consumer-centric disruption.

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Consumers’ focus on healthier lifestyles demands increased agility from life insurance and health providers. This means providers need to enable policyholders to manage their policies as and when their lifestyles change.

◆ The DIY culture among some consumer groups comes with an expectation of reduced service costs and puts pressure on providers to demonstrate the value they add to policyholders. This is why value-added incentives have become part and parcel of life insurance decisions.

It is vital for life insurance providers to put the customer at the centre of technology disruption in this sector.

DIY culture. Health and fitness boom. Value for money.

Lee Bromfield is the chief executive of FNB Life.