As generational shifts redefine consumer expectations across industries, Bidvest Life has taken a step by analysing claims data through a generational lens to enhance relevance and address critical gaps in insurance coverage.
In an interview, Nic Smit, Product and Pricing Executive at Bidvest Life, spoke with COVER’s Tony Van Niekerk about the insights drawn from Bidvest Life’s annual claims report and the evolving priorities for life insurers in meeting the needs of younger generations.
A Generational Perspective on Insurance Needs
This year, Bidvest Life presented its claims report through a fresh approach: a generational breakdown of claims data. As Smit explains, the goal was to bring forward insights that resonate with advisers and policyholders, moving beyond traditional statistics. By looking at claims patterns across different age groups, the team uncovered a key finding: millennials are far more likely to file income protection claims than death claims, underscoring a disconnect between what is traditionally sold and what this demographic actually needs.
“Death isn’t front of mind for millennials,” says Smit. “The statistics show they are 55 times more likely to experience a need for income protection than a death claim.” Recognising that the younger generation isn’t as focused on death risks, Bidvest Life tailored its report to emphasise products that better match the lived experiences of this age group, providing advisers with data to inform meaningful conversations with younger clients.
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The Case for Income Protection and Critical Illness Cover
Addressing the gap between needs and existing insurance offerings led Bidvest Life to a significant product innovation: combining income protection with critical illness cover. This approach aims to streamline and improve the experience for policyholders facing long-term health conditions.
“Income protection is not a concept that’s as well understood as life insurance,” Smit explains, adding that it’s challenging to get clients, especially younger ones, to see its relevance. With a focus on preventing cover gaps, Bidvest Life’s Critical Illness Income benefit ensures that clients diagnosed with serious illnesses are not constantly reassessed but are instead supported with uninterrupted cover. This “one-time claim approval” approach reduces bureaucracy and provides a stable financial foundation during recovery periods.
For younger generations, especially those juggling the early stages of their careers with financial responsibilities, the appeal of such a product is strong. As Tony Van Niekerk observes, this innovative structure provides a “no-brainer” solution for advisers, particularly in targeting the insurance gap among younger demographics.
Reaching Younger Generations: A Strategic Challenge for Advisers
One of the critical challenges facing the life insurance industry is not only offering the right products but also effectively reaching younger clients. With a current demographic of older advisers, there is a natural tendency for advisers to market products to clients within their own social circles, often overlooking younger audiences.
Bidvest Life, however, has found an effective strategy to bridge this gap by extending cover to the children of current policyholders. The company offers cover options tailored for students and young adults, such as their Event Based income protection product for university students. By proactively expanding cover in this way, Bidvest Life reaches younger policyholders indirectly, with advisers leveraging existing client relationships to create intergenerational connections.
A Commitment to Fast and Reliable Claims Processing
Another aspect of Bidvest Life’s claims data that Smit proudly shares is their claims payout ratio and processing speed. “For income protection, 91.5% of lodged claims were paid out, with 73% of these settled within one month of lodging,” he notes. Quick, efficient claims processing reflects the company’s commitment to support clients when they need it most, minimising delays and reducing stress.
In addition, Bidvest Life offers clients the option of death cover as an income-based payout rather than a lump sum. This approach, which accounted for a quarter of all death claims payouts last year, aligns with beneficiaries’ needs for sustained financial support, helping them better manage their financial future.
Innovation that Matters
Bidvest Life’s generationally focused claims report is more than just a shift in data presentation—it represents a shift in thinking that reflects the evolving needs of clients. By focusing on products that match real-world risks, innovating with Critical Illness Income protection, and pioneering generationally relevant coverage strategies, Bidvest Life is leading by example in the insurance sector.
“We want to deliver meaningful insights and solutions that speak to our clients’ lived realities,” says Smit. In a fast-changing world, life insurers are tasked with innovating to meet the needs of a diverse and dynamic population.
Bidvest Life’s generational approach to claims is a timely response to this challenge, helping close the protection gap for younger generations while setting a new standard for claims insights in the industry.