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Category Life Insurance

FNB Life pays out its biggest proactive claim to date

24 March 2021 FNB

FNB Life has proactively paid out its biggest claim to date, valued at R 6 million, for a customised Life insurance policy. The claim was proactively triggered by the FNB Life’s routine policyholder check, followed by a trace of the beneficiary.

Through the Department of Home Affairs, FNB Life routinely checks via the National Population Registry if any of its policyholders are deceased. The pre-emptive claims process pays-out an average of R 8.2 million to beneficiaries per month with over R174 million in pre-emptive paid to date.

Raj Makanjee, CEO of FNB Retail and Private Banking says, “We are committed to continue providing meaningful value to our customers and their families. As a financial services provider with a focus on money management, we believe that insurance is vital in protecting families against financial hardship. Furthermore, our industry leading proactive pay-out also demonstrates our efforts to always put our customers’ needs at the centre of our solutions. Increasingly, FNB Life is becoming the preferred life insurance provider by our Retail customers and we are consistently augmenting the value to customers through the integration of our eBucks offering.”

Lee Bromfield, CEO of FNB Life, says, “This specific policy was only active for 5 months, and our team worked diligently on tracing the beneficiary to inform them about the policy and helped them to compile the necessary claims documentation for the pay-out to be processed. Often, the beneficiaries of these policies aren’t aware of the benefit, so through our pre-emptive claims system, we are able to initiate the claim on their behalf. Over the years, this has saved families against financial hardship after losing their loved ones who may be bread-winners.”

While this process has eased the claims process for beneficiaries, 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 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 also encourage customers through the eBucks programme to have a valid beneficiary on their policy. Policyholders also need to inform all their beneficiaries and family members whenever they take out various covers. In a situation where you cover a family member, ensure that you have their full names as it appears on their identity documents.

In addition, customers are advised to regularly review their policy information and ensure that they have updated beneficiaries to help ease the process of finding them. We currently pay- out 1 in 5 claims within 30 minutes and the rest within 24 hours upon receipt of the relevant documents,” concludes Bromfield.

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Covid-19 may accelerate certain industry trends. What are we likely to see?

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Adoption of contactless technologies and digital experiences will likely be accelerating emerging technologies further
The consumer will expect safety and precautionary measures, driving the need for enhanced surveillance policies and technologies, which may pose potential privacy concerns
Rising activism among consumers and employees could drive an increased focus on corporate purpose
Value chain disruption is likely to lead to an increase in creative partnerships, which may in turn cause organisations to further invest in developing the mindset and agility to collaborate across sectors in the ecosystem
Cost management will be a critical priority to ensure business continuity based on cash flow requirements, to manage lower margins and revenues during a downturn
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