DailySun
While life insurance plays a crucial role in managing risk, supporting families, and preserving wealth, it has traditionally not been viewed as an innovative field. Yet, in today’s digital age, the sector is evolving and integrating technological advancements just like many other industries.
“These days, you can shop online and receive groceries right at your door. Insurance should follow suit,” says Ryan Switala, head of Simple Life Solutions at Liberty.
This doesn’t mean that everyone will choose to purchase life insurance through an app—much like not everyone opts for online shopping. It simply underscores the industry’s evolution and how new trends are transforming customer views, accessibility, and interaction with life insurance products.
Client-Centric Focus
A lot of the innovations in this field stem from a dedication to meeting specific client needs while enhancing their experience.
“In the past, the underwriting process for life insurance was often lengthy and intrusive,” explains Mark Barberini, head of Comprehensive Insurance at Liberty. “This stands in contrast to making an investment, where you just select your portfolio, invest your money, and it’s completed.”
Historically, a customer would need to meet with an advisor who assessed their needs and proposed appropriate coverage. The advisor would then gather that information and return with different quotes and options.
However, the client still had to navigate an underwriting phase to determine their eligibility for coverage and whether they would face higher premiums due to particular risks.
“This experience is generally unsatisfactory, especially today when people expect quick results,” states Barberini. “We’re moving towards underwriting decisions that can be made in 20 to 30 minutes, only subjecting customers to comprehensive underwriting if uncommon risks arise. Ideally, this should apply in just 5% of cases, not 100%.”
This transformation is powered by technologies like facial scanning, which can rapidly provide essential health data.
“Customers increasingly prefer a faster, less intrusive process, which technology helps enable,” Barberini adds. “This choice may not suit everyone, as giving less information could lead to higher premiums, but it is becoming more viable.”
The Role of Artificial Intelligence
In the future, artificial intelligence (AI) is anticipated to significantly influence this arena.
“AI will afford insurers access to a wide range of data sources,” Barberini notes. “It can synthesize what that data reveals and provide insights that may not be immediately clear to humans. This will simplify underwriting processes.”
This development has the potential to make accessing life insurance considerably easier.
“Much of the industry’s processes have historically been designed to manage the 1% of high-risk cases, often at the expense of the experience for the remaining 99% of clients,” Switala states.
“This emphasis has been vital, allowing the 99% to gain advantages from a sustainable and cost-effective product through risk management.
“Nonetheless, there is enormous potential to transform every aspect of the journey—from receiving advice to completing applications and the entire underwriting process, where applicants previously had to answer a long series of medical questions. We have numerous opportunities to enhance that experience using data and AI for quicker, more precise insights.”
Simplification Trends
This highlights perhaps the most significant trend in life insurance markets: a shift toward simplification.
“In the past, performing extensive medical assessments on simpler products might not have been cost-effective, but technological advancements mean these can now be integrated without compromising customer experience,” Switala explains.
This evolution allows us to introduce digital channels for accessing simpler products, making it more convenient for customers to obtain coverage at an attractive price point.
This trend is already observable for clients looking for life insurance when securing home or car loans from banks, with the process evolving into a fully digital format, allowing for immediate coverage.
Technology also facilitates the development of solutions that reflect an individual’s unique risk profile.
“For example, there’s likely a strong correlation between someone’s banking and credit risk behaviors and their life insurance risk,” Switala emphasizes. “By utilizing that type of data, we can greatly personalize underwriting and pricing.”
Many insurers are also working on simplifying their offerings. Liberty, for example, had over 1,100 products within its investment and insurance portfolio only a decade ago; that number has now fallen to fewer than 70.
“No client wants to receive a service designed 20 or 30 years ago when more modern options are available,” Barberini remarks. “As a result, we’ve been transitioning clients to more contemporary systems, ensuring they receive the same coverage, often with enhanced benefits.”
“Our philosophy is that technology enables us to balance efficiency with the essential aspect of empathy, which is crucial for us at Liberty,” Switala states.
“Ultimately, our goal is to provide fewer options that are more in tune with our clients’ needs and broader aspirations. We are aiming to be a more digital organization, where obtaining insurance is more intuitive, straightforward, and ultimately adds greater value to our clients’ lives.”
Disclaimer
This article is for informational purposes only and does not constitute tax, legal, financial, regulatory, accounting, technical, or any other form of advice. It does not include any personal recommendations. Despite thorough preparation, no member of Liberty guarantees the accuracy or completeness of the information presented and assumes no responsibility or liability in this regard. For financial advice and/or intermediary services, please consult your financial advisor.
Liberty Group Limited is a Licensed Life Insurer and an Authorized Financial Services Provider (no 2409), part of the Standard Bank Group. Terms and conditions, risks, and limitations apply.
About Liberty
Liberty is a wholly owned subsidiary of The Standard Bank Group and one of the largest providers of long-term insurance solutions for South Africa’s retail affluent market. With a strong and relevant brand for over 60 years, Liberty offers a comprehensive, market-leading selection of products and services designed to help clients build and protect their wealth and lifestyle. This is supported by Liberty’s distribution network of 3,000 professionals, who equip customers with the knowledge needed to make financial decisions that enhance value throughout their various life stages. Liberty’s integration into Standard Bank creates synergies and advantages not only in South Africa but across the African continent, positioning Liberty as an essential part of a universal financial services organization committed to delivering outstanding customer experiences and superior value. Liberty’s wholly-owned asset manager, STANLIB, ranks among the largest retail unit trust managers (including money market) in South Africa, with award-winning capabilities in property and fixed income. In collaboration with its market-leading offshore partners, STANLIB offers unique investment opportunities for clients. Liberty Group Ltd is a licensed life insurer and an authorized financial services provider.
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