FNB Life proactively pays nearly R50 million in unclaimed policies

FNB Life has paid out nearly R50 million in pre-emptive life insurance claims over the past year. Through a partnership with the Department of Home Affairs, FNB Life routinely checks via the National Population Registry if any of its policyholders are deceased.

In the unfortunate event that a policyholder is deceased, the life insurer proactively processes a pay-out to beneficiaries, many of which have no idea that the policies existed. The pre-emptive claims process has paid an average of R2.9 million worth of claims per month over the past year across different insurance products. The highest individual pay-out was worth R2.25 million overall, R2 million for life cover and R250 000 for funeral cover.

Lee Bromfield, CEO of FNB Life, says, “currently, we are the only life insurer in the country that has been able to initiate a claim payment on behalf of the beneficiary when the policy holder has passed on. More often than not, the beneficiaries of these policies aren’t aware of the claims, so through our award-winning pre-emptive claims system, we are notified when our policyholders pass on, and we initiate the claim on their behalf. We believe that it’s unfair that consumers who have spent their hard-earned money paying insurance premiums have to lose out on their claims as a result of insurers not being able to contact their loved ones, or their beneficiaries not being aware of the policies.”

The life insurer pre-emptive claims process was awarded the best Innovation in Customer Experience at the 2019 BAI Global Innovation Awards. However, tracking beneficiaries comes with its own challenges, one being the inability to trace policy beneficiaries due to incorrect or insufficient beneficiary information. In most cases, the insurer has had to work off a name or initial and surname with no date of birth, ID number or contact details. Another hinderance is the fact that potential beneficiaries refuse to provide their details when contacted to avoid being scammed.

“It is absolutely critical for customers to ensure that they provide the correct beneficiary information and are constantly reviewing their policy details to ensure that they’re all up to date. From our side, we have embedded the capturing of mandatory beneficiary details in the sales process and have introduced a function on Cellphone banking and the FNB website that allows policyholders to conveniently update their beneficiary information. We’ve also encouraged customers through the eBucks programme to have a valid beneficiary on their policy,” says Bromfield.

FNB Life encourages policyholders to actively inform all their beneficiaries and family members whenever they take out various covers. In addition, customers are advised to regularly review their policy information and ensure that they have the following in place to help ease the process of finding claim beneficiaries:

- Update your beneficiaries - make sure your beneficiaries are also kept updated as well as their contact details to enable a seamless pay-out process.

- Make sure you’ve updated all your personal details – up to date information is crucial to your claim being processed quickly, hence FNB Life encourages its customers to regularly update any changes in personal details such as marital status, address and contact details to avoid unnecessary delays.

In instances where a policyholder submits a claim, the life insurer requires a notice of death form and verifies the death through the National Population Register to expedite the pay-out. We currently pay out 1 in 5 claims within 30 minutes and the rest within 24 hours upon receipt of the relevant documents.