Something new?

Hollard Broker Solutions (HBS) is now offering improved benefits at no additional cost to existing policyholders for its Dread Disease and Specific Cause Debility covers.

This "living rates" concept is basically about enhancing existing products to reward clients for their past loyalty and to retain their future business says Pat Fletcher, head of marketing and sales support at HBS.

According to the company the approach addresses the need for updates and enhancements of existing cover without having to cancel policies and take out new ones – the dreaded 'churn' factor which is believed to be running at anything up to 30% of new business industry-wide right now.

Fletcher points out that to enable these automatic upgrades of existing policies, most of HBS' independent brokers have actually foregone commission as they would have been paid for upgrading their clients' policies.

On the other hand, for these brokers it has to do with brand building, client loyalty and growth from a stable client base she says.

Spelling out the benefit Fletcher says that, for the Dread Disease cover, the previous term up to age 65 has been extended to the lifetime of the policyholder and benefits such as severe burns, blindness and post claims reinstatement introduced, the latter allowing for multiple claims.

For Specific Cause Debility cover the benefit term has also been extended to the policyholder's lifetime and new benefits introduced for severe spinal debility with100% payout and partial spinal debility with a 50% payout.

Fletcher says the enhancements reflect the quality of the HBS book, actuarial fine-tuning and negotiated reinsurance and insurer cost reductions which are being passed on to existing policyholders.