The Efma-Accenture Innovation of the Month acknowledges excellent entrants to the Innovation in Insurance coverage Awards early within the awards program. This month’s profitable innovation goes to Vida Viva Bradesco, a Brazilian insurer that’s seeking to change the notion of life insurance coverage with their distinctive, pay-as-you-go mannequin.
Traditionally, a life insurance coverage coverage was related to safety for the household in case of dying. Nonetheless, Vida Viva Bradesco has designed protection for anybody from 18 to 80 years previous, which supplies related protection for every life stage.
Bernardo Castello, Director of Bradesco Vida e Previdência explains the worth of life insurance coverage for any technology:
“Life insurance coverage gives a sequence of advantages centered on the standard of lifetime of the policyholder, in opposition to unexpected and sudden losses. Subsequently, it’s a safe various to maintain monetary situations so as for those who can not afford payments as a consequence of sickness, unemployment, or momentary incapacity. Life insurance coverage supplies monetary help in essentially the most completely different conditions, whether or not for many who have already achieved a situation of independence, with youngsters raised, or for many who nonetheless rely on revenue to offer to their households. With the assorted coverages and assistances obtainable, in lots of instances, it’s extra advantageous to have life insurance coverage than to maintain the cash as an emergency reserve.”
The event of this product is in response to modifications in buyer wants and world tendencies. All around the world, shoppers are searching for extra versatile and customizable merchandise that may be consumed on-demand.
In Bradesco Vida e Previdência’s efforts to attempt to perceive and take in the idea of on-demand merchandise for the life insurance coverage market, they shaped the thought for Vida Viva Bradesco, totally customizable and versatile insurance coverage with 17 protection and 12 help choices.
The query stays, how does an insurer make an on-demand life insurance coverage enterprise mannequin work? Castello says, “Shoppers are concerned with on-demand insurance coverage principally as a result of the worth is adjustable primarily based on the chosen utilization or options of the coverage. We see this as a development that’s right here to remain in prospects’ lives. Within the case of life insurance coverage, we now have from less complicated choices, which provide dying protection with funeral help, to extra advanced and complicated merchandise, together with protection that can be utilized in life, an element that has influenced the demand for insurance coverage. The on-demand mannequin supplies the consumer with extra flexibility, agility, and autonomy to suit the coverage to their wants. This format additionally encourages a everlasting evaluation of what was contracted, in order that the insurance coverage at all times meets the actual wants of this shopper.”
He provides, “On-demand insurance coverage gives a comparatively extra inexpensive premium quantity per insurance coverage coverage and better flexibility by way of protection and help. In different phrases, the shopper can activate or cancel the contracted product a lot simpler by means of self-service. One of these mannequin takes a customer-centric strategy, providing merchandise that meet precisely what the shopper wants.”
To date, the market is responding positively. Between June 14 and August 31, 2021, R$ 2.3 million in premiums and 18,000 insurance policies have been issued in solely two and a half months.
Castello concludes, “One of many key current transformations in Life Insurance coverage is the shift from the idea of safety to that of prevention. As an insurer, this implies working alongside our prospects to construct insurance policies that anticipate dangers and develop into a part of a extra full and constant monetary planning.
Vida Viva Bradesco is an instance of how an insurer can pivot in response to buyer wants and redefine the worth of the product they’re promoting within the course of.
Hannah Moisand, Efma, Head of Content material says, “We have been delighted to see a conventional and infrequently static insurance coverage providing dropped at prospects in a related and fascinating manner. Certainly, the help supplied to prospects by means of a hyper-personalised on-line expertise is true on development with the business developments wanted to carry insurance coverage into the 21st Century.”
Submissions to the Efma-Accenture Innovation in Insurance coverage Awards at the moment are closed. Find out more about the selection process, and particulars on the awards ceremony.
Get the most recent insurance coverage business insights, information, and analysis delivered straight to your inbox.