It isn’t easy making sense of the current environment. In order to do so, we need consider the impact of digitisation and the pandemic on our financial services industry. Above all, it’s important to develop a clear view of where your greatest business opportunities currently lie.
How can you grow your business, conduct it easily and simply, but also ensure that you and your clients remain safe?
According to Asisa the current insurance gap is R34.7 trillion. This obviously presents an enormous opportunity for both insurers and financial advisers. But why is this gap so wide?
Financial literacy and education, as well as economic conditions play a major role. But, it’s also important for our industry to bring new processes and technology to the table that can ensure faster, simpler and easier fulfilment.
It’s time to adopt a new way and face the fourth industrial revolution (4IR) head-on. At 1Life, we believe innovation within the 4IR space is very important. Research conducted by Lynne Molloy and Linda Ronnie for a paper presented at the Actuarial Society Convention of South Africa, suggests that the life insurance industry in South Africa is a slow adopter of the 4IR and this is partly because we think robo-advice, when we hear 4IR.
The fact is that 4IR is not about robo-advice, but rather about human-technological collaboration. Creating a definite space for the financial adviser within the 4IR model aimed at an advice-giving perspective.
Technological innovation is moving fast and moving beyond the simple digitisation that we are used to from 10 – 20 years ago. This disruption plays out into a number of opportunities for us and for financial advisers. The trick however is to evaluate these opportunities and find the right one for your business.
We need to consider the impact of digital solutions on the insurance business model
The old and in some cases current sales process takes 3 – 5 weeks to complete, before you have the client’s cover in place. This sales process, as you will know, stretches across a kick-off meeting, FNA, quoting, negotiations, capturing the application, processing the application, then acceptance or underwriting and eventually the client’s cover is in place.
It’s especially the financial needs analysis (FNA) and underwriting process that can take long and that’s why we developed our own digital solution for financial advisers, namely 1Life Vantage, which kick-started our 4IR ecosystem. The solution provides financial advisers with added value, saves on sales time and helps with practise growth.
1Life Vantage is one of the first South African cloud-based, fully integrated digital solutions
Cloud-based applications need not be a scary proposition for your clients. In fact, we are all already doing our banking through cloud-based applications, so why not also our insurance?
Vantage is completely paperless and available on all smart devices. It has real time, straight-through underwriting and processing, with a 97% acceptance rate, all in under 35 minutes. It also supports our entire Life and Wealth product suite.
1Plan, our FNA, is incorporated into Vantage and asks only five questions. 1Plan uses data and the answers to these five questions to come up with an affordable monthly number. No adjusting required. Based on the client’s life stage, 1Plan then calculates how much of that affordable monthly number should be spent on risk products and how much on investing.
Vantage also features four unique IFA commission models. Currently, a great concern is commission risk, given the precarious financial position of so many South Africans. Our commission models provide flexibility from both a remuneration and income perspective.
Adapting during times of crises
There’s something to be said about our human ability to adapt. In fact, we believe that agility currently lies at the heart of any business and this in turn links to our philosophy of change is inevitable, but growth is a choice. That’s why it took us only 3 days to incorporate the remote acceptance of policies into Vantage. This includes the use of electronic signatures and two-factor verification, through a one-time pin, enabling financial advisers and their clients to conclude business remotely and safely.
We already have a number of financial advisers utilising the solution and we have had some great feedback. So, why not book a demo with us and see for yourself. Simply click here and complete your details and one of our specialised broker consultants will be in contact.There’s something to be said about our human ability to adapt. In fact, we believe that agility currently lies at the heart of any business and this in turn links to our philosophy of change is inevitable, but growth is a choice. That’s why it took us only 3 days to incorporate the remote acceptance of policies into Vantage. This includes the use of electronic signatures and two-factor verification, through a one-time pin, enabling financial advisers and their clients to conclude business remotely and safely.