The Efma-Accenture Innovation of the Month acknowledges excellent entrants to the Innovation in Insurance 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.
Historically, a life insurance coverage coverage was related to safety for the household in case of loss of life. However, Vida Viva Bradesco has designed protection for anybody from 18 to 80 years outdated, which supplies related protection for every life stage.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 offers a series of benefits focused on the quality of life of the policyholder, against unforeseen and unexpected losses. Therefore, it is a secure alternative to keep financial conditions in order if you cannot afford bills due to illness, unemployment, or temporary disability. Life insurance provides financial support in the most different situations, whether for those who have already achieved a condition of independence, with children raised, or for those who still depend on income to provide to their families. With the various coverages and assistances available, in many cases, it is more advantageous to have life insurance than to keep the money as an emergency reserve.”
The improvement of this product is in response to modifications in buyer wants and world developments. All over the world, customers 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 up the idea of on-demand merchandise for the life insurance coverage market, they shaped the concept 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, “Consumers are interested in on-demand insurance mostly because the price is adjustable based on the chosen usage or features of the policy. We see this as a trend that is here to stay in customers’ lives. In the case of life insurance, we have from simpler options, which offer death coverage with funeral assistance, to more complex and sophisticated products, including coverage that can be used in life, a factor that has influenced the demand for insurance. The on-demand model provides the client with more flexibility, agility, and autonomy to fit the policy to their needs. This format also encourages a permanent review of what was contracted, so that the insurance always meets the real needs of this consumer.”
He provides, “On-demand insurance offers a relatively more affordable premium amount per insurance policy and greater flexibility in terms of coverage and assistance. In other words, the customer can activate or cancel the contracted product much easier through self-service. This type of model takes a customer-centric approach, offering products that meet exactly what the customer needs.”
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 had 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 clients 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 says, “We were delighted to see a traditional and often static insurance offering brought to customers in a relevant and engaging way. Indeed, the support offered to customers through a hyper-personalised online experience is right on trend with the industry developments needed to bring insurance into the 21st Century.”
Submissions to the Efma-Accenture Innovation in Insurance Awards at the moment are closed. Find out extra in regards to the choice course of, and particulars on the awards ceremony.
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