Niche Focus and Operational Efficiencies Allow Altrisk to Drive Down Pricing

20 March 2012 Ryan Chegwidden, Actuarial Executive at Altrisk

Specialist long-term risk product provider, Altrisk, today announced a new pricing structure that will see a significant reduction in insurance rates for certain categories of risk. Professionals and women benefit the most from Altrisk’s revised pricing

The announcement comes at a time when consumers are under pressure on all fronts with increasing medical aid and insurance costs now consisting of at least 20% of many household budgets.

“We have reviewed our pricing across all risk profiles and a substantial part of our benefit range. Some premium rates have remained unchanged and there have been some increases. However, we have identified certain assured lives and benefits that show lighter claims experience than that implied by current premium rates in the market and lighter than our previous expectations. Our own claims experience, backed by the data from our treaty reinsurer, has enabled us to take the opportunity to offer lower pricing for certain groups of policyholders. For example we have introduced a new Professional Class which means that clients that meet the criteria for this class could be entitled to lower premium rates than our current best class risk profile.

“Altrisk has always remained focused on niche markets which allows for greater operational efficiencies and lower cost per policy. This lower cost is passed on to consumers and makes us more competitive. Our new pricing will make us the most competitive long-term risk product provider across the identified segments,” says Ryan.

Introduction of a new Professional Class

An analysis of claims experience shows that certain professions have a better risk profile than even those in our current best risk category. The criteria for this professional class are either

· Four-year degree and a selected professional occupation or membership of a listed professional organisation, or;

· Business owner/ manager/director with a three-year degree, R50k pm income and 90% -100% administrative duties.

Altrisk’s new pricing in a nutshell:

- Lower premium rates for:

· Female life cover

· Lump Sum Disability for both males and females.

· Professional class lives for life cover

“While the standard pricing and benefits are just two important factors in the equation, Altrisk continues to place more importance on individual risk assessment through its underwriting. Even though Altrisk strives for simplicity, financial advisors still remain critical in professionally assessing the client’s specific needs through a financial needs analysis and making sure that policyholders understand what they are buying,” concludes Ryan.

Quick Polls


How confident are you that insurers treat policyholders fairly, according to the Treating Customers Fairly (TCF) principles?


Very confident, insurers prioritise fair treatment
Somewhat confident, but improvements are needed
Not confident, there are significant issues with fair treatment
fanews magazine
FAnews June 2024 Get the latest issue of FAnews

This month's headlines

Understanding prescription in claims for professional negligence
Climate change… the single biggest risk facing insurers
Insuring the unpredictable: 2024 global election risks
Financial advice crucial as clients’ Life policy premiums rise sharply
Guiding clients through the Two-Pot Retirement System
There is diversification, and true diversification – choose wisely
Decoding the shift in investment patterns
Subscribe now