Its new “no smoke and mirrors” product

Hollard Life Solutions has launched its Life Select product to further simplify intermediary and client understanding of its benefits, retain its competitive value and ensure ease of doing business. The Life Select product provides life cover, disability, critical illness and income protection benefits.

Willem Smith, Executive Head of Distribution at Hollard Life Solutions explains that “Our research found that both intermediaries and clients want more simplicity and transparency from their insurers. Therefore, we have streamlined our offering, simplified our insurance language, removed jargon, and created product benefits that consumers will fully understand and buy into. We are confident that our clients will enjoy the transparency and simplification that we have created.”

What did we do differently?

Smith highlighted that, “Other factors that were taken into consideration in the design and development of the Hollard Life Select offering was to maintain our competitive pricing. We have put together a lot more benefits for less. By simplifying the policy language, marketing material and technical specifications the product is easily understood and there is clarity on our promise and obligations. The product is also easily explained to the customer, eliminating complex benefit interactions and conditional benefit features with fewer exclusionary clauses than most of our competitors. Additionally, regulatory, compliance and complaint risks are all minimised.

“No bells and whistles, you get what you see; and paying for what you really need was our focus throughout the development phase. Bells and whistles have imposed undue complexity on the industry and are very seldom used, so the customer does not really benefit. We know that perceptions around and understanding of insurance in South Africa remain convoluted. Most South Africans view insurance as a grudge purchase, and do not necessarily understand its benefits or why there is a need for it. Of the biggest challenges is the perception that insurance is complex, and that you pay for something from which you do not immediately benefit.

Changing the narrative

“By simplifying our product offering, we want to tap into a market that knows about insurance but has not explored it fully because of its complexity.

“The Covid-19 pandemic has unveiled the importance of insurance, and without cover, families are left stranded. We want to provide an affordable solution to ensure that families can have some financial stability in the event of the death of a loved one, or in the event of an unpredictable eventuality of critical illness or disability. With the Hollard Life Select offering, we have: 

• Created a simplified understanding of our offering that seeks to solve the day-to-day challenges that consumers face.
• Developed a product that meets consumer needs at the best value possible.
• Designed one of the shortest application forms in the insurance industry, to showcase our commitment to simplifying and removing complexity in the offering.
• Integrated core offerings that consumers need to address life challenges in one simplified offering that covers life, disability, critical illness and income protection.

“Essentially, we have designed a product that offers the best value to customers, without any hidden costs or conditions,” comments Smith.

He said, “Our advisors and intermediaries will realise that in this offering, we have created a saleable product that speaks to the needs of many South Africans. While the application process has been significantly simplified, it has not changed from the one used throughout the Hollard Life portfolio, therefore enabling advisors to save time, and not have to learn anything new.”

Value for advisors and intermediaries

“We focused on three main benefits that appeal to consumer needs and empower advisors to present the product to market. These are simplification, value for money and ease of doing business. Advisors being able to offer savings to non-Hollard customers has promoted customer retention. Hollard has also reduced premium rates for lump sum disability.

Even with the introduction of new FICA and POPIA requirements, Hollard has maintained its position with the Hollard Life Select as one of the shortest application forms in the market. Consequently, both customers and advisors will spend the least time completing application forms, and this in turn will play a crucial role in reducing the risk of error in the application process.

Smith said, “Resulting from the flexibility of the commission, customers benefit from tailor-made premium structures that suit them; and in turn advisors will be able to manage their remuneration and the premium to the customer, thereby supporting the transition to a fee-for-service practice.”