FANews
FANews
RELATED CATEGORIES

Industry-first products and a commitment to matching clients’ needs continues to drive BrightRock’s rapid growth

17 October 2019 BrightRock

Key performance indicators*

• BrightRock increased its market share to 16% in 2018, making it the second largest provider in its segment
• Total cover in force exceeds R270 billion
• Annualised premium income grows to R1,7 billion
• Total claims paid of more than R1,2 billion
• Lives covered grows to over 2,5 million

*Market share percentage is according to Swiss Re New Business Volume Survey 2018 for cover sold by independent financial advisers in the large segment. All other figures are as at 30 June 2019 and include BrightRock’s individual life, group life and life assistance business.

Needs-matched life insurer, BrightRock, has provided an update on its business performance and growth following the recent release of the Swiss Re Individual Volume Survey for 2018. According to the annual survey, BrightRock – which was ranked in fourth position in 2017 – is now the second largest player overall in the large premium segment (policies with a sum assured greater than R2,4 million). The survey indicates that the life insurer accounts for an overall share of 16% of all new business sold by independent financial advisers, up from 12% in 2017.

BrightRock CEO, Schalk Malan, says that the insurer’s strong growth in an otherwise slow market is a testament to the impact of its needs-matched product offering: “We have seen widespread adoption of our unique product features by financial advisers and their clients”.

“For example, more lump-sum disability cover was placed with BrightRock than with any other provider in the market in 2018, while more non-occupational disability cover was placed with BrightRock by IFAs than with all other providers in our market segment combined. This shows that we are seeing real shifts in our industry, thanks to our needs-matched approach.”

According to Malan, through its efficient design BrightRock is able to offer clients up to double the lump-sum disability cover for the same premium and, across their BrightRock life insurance policy, an average of 40% more cover overall for the same premium. It is also the only provider in the market that offers clients the ability to change their choice of a lump-sum pay-out on disability or the option of choosing a recurring income instead, at claim-stage.

BrightRock’s half-year performance figures to the end of June 2019 affirm its growth in the market. The needs-matched insurer continued to deliver strong organic growth with an average year-on-year growth rate of 56.7% in annual premium income (API) for in-force business for the four-year period from 30 June 2015 to 30 June 2019. Starting from a zero base at its launch in 2012, BrightRock’s annual premium income has grown to R1.7 billion as at 30 June 2019, despite tough market conditions. Malan says lapse rates have been lower than expected, an indicator of the value clients place on their needs-matched cover with BrightRock, while claims experience has been positive.

“We are particularly proud of BrightRock’s track record in terms of paying claims. To date, we have paid over R1.2 billion in claims – in many instances, paying out higher amounts and paying for claims that other providers wouldn’t cover. Since our market entry, we’ve been focused on improving claims certainty for clients and removing unnecessary barriers to claim, so it’s really gratifying to see this approach benefit our clients when it matters most.”

Total cover in force now amounts to over R270 billion, with more than two and half million lives covered across its individual life, life assistance and group risk offerings.

Malan believes that BrightRock will continue to increase its market share and see adoption of its needs-matched cover: “We are continually introducing market-leading product features to offer our clients cover that meets their needs throughout their lives. In fact, we have just announced some exciting new product enhancements to our temporary disability cover that I believe will fundamentally change the market”.

Malan says the new product features – available from November – include, among others:

• The most comprehensive list in the market of over 300 clinical conditions covered under temporary disability;
• Increased claims certainty of temporary disability claims for clients in manual occupations;
• Claim-stage choice between a lump-sum or a recurring pay-out, a market first.

 

 

Quick Polls

QUESTION

In terms of vicarious liability, damages should not be borne by companies in all conditions, but only in those circumstances which it is reasonable for them to do so. Do you agree?

ANSWER

Yes, damages should only be borne by companies in those circumstances which it is reasonable for them to do so.
No. If there is a sufficiently close link between the employee’s acts and the purposes and business of the employer, the employer should be held liable for delicts committed by their employees.
As long as the employee is acting within the course and scope of his or her duty… the employer will be held liable.
A E fanews magazine
FAnews October 2019 Get the latest issue of FAnews

This month's headlines

Non-disclosure - a question of fairness
Level of insurance regulation notably tightened
The cost of treating cancer
Employee Benefits… an untapped opportunity
Bound to NHI… whether you like it or not
A stormier world for marine insurers
Examining the application of reinstatement clauses
Subscribe now