Claims track record is key source of consumer reassurance – Liberty Life
An insurance company’s claims-paying record is becoming a key facet of the marketing process in the interaction with today’s well-informed consumer.
Advisers should therefore arm themselves with up-to-date industry and company statistics on the claims experience.
This ‘advice to the advisers’ comes from Liberty Life, a life assurer that believes a positive message should be carried to the consumer.
Frank Schutte, Divisional Director for Strategic Initiatives - Commercial Units at Liberty Life, notes: “Consumers often begrudge paying premiums month after month to cover risks that have yet to happen. But in reality,things could go wrong and you, as the consumer need to know that you are with a reputable company that will make sure your claim is paid timeously.”
Liberty Life encourages its own marketers to be as open and invite consumer questions on these issues.
Schutte adds: “Strong, well-established companies have a good record and should not be reticent about spotlighting the claims process for what it is – one of the key differentiators in our industry.”
Liberty Life uses its website to carry regular updates on claims matters.
In 2006, life insurance companies in South Africa settled individual claims to a total value of R80 billion.
In the first quarter of 2007 alone, Liberty Life paid out more than R450 million in risk cover. This included R365,5 million in death claims, R32,5 million in disability claims, R18,2 million in monthly income disability claims and R34 million in dread disease claims.
Schutte points out: “We tell our client-facing staff to put consumers at ease on these issues and encourage them to ask questions about claims.
“Asking about claims is not a sign that a consumer is potentially a poor risk. It simply means the prospective client is prudent – and insurance companies like prudent people.
”We believe this is the way to view these questions. Greater transparency is not a threat. It’s a way of spotlighting a track record in which reputable companies take justifiable pride.”
