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FNB Insure pays R700 million in pre-emptive life insurance claims

More often than not, people take up insurance policies without informing beneficiaries of the existence of these policies. This makes it harder for loved ones to access the risk benefits that are due to them, when policyholders pass away.

According to the Financial Services Conduct Authority (FSCA), South Africa had R88,5 billion in unclaimed assets in 2022, with unclaimed insurance benefits making up 38% of the total. This led to the creation of a pre-emptive claims proposition in 2018 which is a business-triggered claims notification process, that traces beneficiaries proactively to make them aware that they are beneficiaries of insurance policies which they can claim from. The business initiates this process on behalf of customers by proactively accessing and analysing data from the Department of Home Affairs’ Population Registry to proactively pay beneficiaries when a policy holder or an insured life passes on.

FNB Insure has paid out over R700 million in pre-emptive life insurance claims since inception. To date, FNB has proactively processed over 11 000 claims, with an average of R2 million claims per month over the past year. The highest pre-emptive life cover claim processed amounted to R 6 million for life cover and R100 000 for a funeral policy.

Evodia Phahlane, COO of FNB Insure says, “Through our pre-emptive claims process, we are able to initiate the claim on behalf of beneficiaries who are not aware of the policies their loved ones might have taken. Over the years, this has saved families against financial hardship after losing their loved ones who may have been breadwinners.

Our industry-leading proactive payout process continues to demonstrate our commitment to always putting our customers’ needs first and being there for them in moments that matter the most. With our focus on being an integrated financial services provider, we are committed to providing our customers with integrated advice across their transactional, credit, savings, investments, and insurance needs. This is essential in enabling more of our customers to better manage their money and protect themselves and their families.”

In addition, FNB Insure also disclosed in March this year that it had paid out more than R13 billion in life insurance claims to its customers in the previous year. The bank’s commitment to providing innovative solutions, supported by its platform-led ecosystem, has been a game changer for the insurance industry and will continue to generate market-leading benefits for customers. “Our approach and processes not only demonstrate our commitment to paying out valid claims, but also shows our unwavering focus on being a trusted life insurance company to our customers,” she adds.

“Our life insurance business was founded with the primary goal of serving customers in their time of need, and we are accomplishing that goal by constantly disrupting the traditional insurance market.  We’ve democratised access to life insurance through FNB’s digital platform by developing cost-effective solutions with simple sign-up and claims processes,” Phahlane adds.

FNB Insure has previously been recognised for customer satisfaction in the annual SACsi survey on multiple occasions due to its customer-centric approach to life insurance. In 2023 the business’ Automated Funeral Claims Process was also recognised by Celent, a global research and advisory firm for the financial services industry, as the winner of a Model Insurer Award in the Customer Experience category for its Automated Funeral Claims Process.

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