Life Insurance Industry Ready to Move Online

December 4 - The days of life insurance products being covered with multi layers and sold through intermediaries are coming to an end, says the company that claims to South Africa's first fully online life insurer, Instant Life.

The group said that today's customer expects a type of product that is affordable and available to everyone.

"The new generation of insurers will shift the focus from the old model of push selling by a commissioned intermediary, to life products that internet savvy and informed clients will want to buy," said the Chief Executive Officer of Instant Life, Jan Kotze.

Instant Life has managed to bring costs down considerably by doing away with an interactive call center and settling with an automated administrative system.

Savings are then given back to the customer through reduced costs.

"We think South African clients are mature enough for the next phase of the e-commerce curve - using the internet to buy more sophisticated products that require online interaction," said Kotze.

Despite tough competition, Instant Life believes that there is still plenty of scope for expansion in the South African market, especially in light of recent statistics which estimate that 50% of all South Africans are underinsured.

"Traditionally life insurance has been 'sold' not 'bought'," said Kotze. "Products have been complex and the clients' needs always clearly defined. We think Instant Life can change that."

Instant Life said that it is currently the only life insurer offering up to R6 million life cover without a full medical - around half the cost of its competitors.

"Our website clearly sets out our products, which are easy to understand, easy to apply for and easy to maintain until the day a claim needs to be processed," said Kotze.