The Efma-Accenture Innovation of the Month acknowledges excellent entrants to the Innovation in Insurance Awards early within the awards program. This month’s successful 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.
Historically, a life insurance coverage coverage was related to safety for the household in case of demise. However, Vida Viva Bradesco has designed protection for anybody from 18 to 80 years previous, which gives 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 affords a sequence of advantages targeted on the standard of lifetime of the policyholder, towards unexpected and sudden losses. Therefore, it’s a safe various to maintain monetary circumstances so as in case you can not afford payments as a consequence of sickness, unemployment, or non permanent incapacity. Life insurance coverage gives monetary assist 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 depend upon earnings to offer to their households. With the varied coverages and assistances accessible, in lots of instances, it’s extra advantageous to have life insurance coverage than to maintain the cash as an emergency reserve.”
The growth of this product is in response to adjustments in buyer wants and world developments. All over the world, shoppers are in search of 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, absolutely 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, “Consumers are enthusiastic about 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 pattern that’s right here to remain in prospects’ lives. In the case of life insurance coverage, we’ve from less complicated choices, which supply demise protection with funeral help, to extra complicated 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 gives the shopper 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 client.”
He provides, “On-demand insurance coverage affords a comparatively extra inexpensive premium quantity per insurance coverage coverage and higher flexibility by way of protection and help. In different phrases, the shopper can activate or cancel the contracted product a lot simpler via self-service. This kind of mannequin takes a customer-centric method, providing merchandise that meet precisely what the shopper wants.”
So far, 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 the important thing latest transformations in Life Insurance 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 change 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 says, “We have been delighted to see a conventional and sometimes static insurance coverage providing dropped at prospects in a related and fascinating approach. Indeed, the assist provided to prospects via a hyper-personalised on-line expertise is correct on pattern with the business developments wanted to carry insurance coverage into the twenty first Century.”
Submissions to the Efma-Accenture Innovation in Insurance Awards are actually closed. Find out extra concerning the choice course of, and particulars on the awards ceremony.
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