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Brightrock is no longer a small player: last year it had annual premium income of R1.6bn and new business of R433m Cover changes Premiums redeployed beneficiaries can choose definitions premiums 40% less claims

At a time when insurtech businesses are cutting out the middleman, Brightrock, just seven years old, stands out as the poster child for the traditional intermediary-based model.

Its total premium income was up 43% in 2018, at a time when its parent company, Sanlam Personal Finance (SPF), saw a modest 4% increase in business volumes.

And Brightrock is no longer a small player: last year it had annual premium income of R1.6bn and new business of R433m. It now has a 12% market share of large-risk policies sold by independent financial advisers (IFAS), making it the fourth-largest player.

Average monthly premiums are R1,400, but there is no minimum if the client has a need for only modest cover.

Brightrock is currently writing half of all lump-sum disability policies.

Brightrock products are distributed by 4,400 IFAS. It takes what is called a needs-based approach which is too complex to manage on the back of a cigarette box. There are in effect six separate mini-policies to cover household needs, debt, childcare needs, death-related costs (such as estate duty), health-care costs and unexpected costs.

When the cover is no longer for debt or for children, premiums can be reweighted to take care of expected increases in the costs of the other benefits. When the need for cover has fallen overall, premium increases can be curbed.

“We have found that clients have switched to Brightrock after getting a 20% premium increase from a competitor,” says CEO

Schalk Malan.

He says the needs-based approach does not just apply to individual life, death and critical illness policies. It has already expanded in the highly commoditised group risk market.