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February 6, 2025

Generational Insights in Insurance Claims

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Nic Smit, from Bidvest Life, delves into their latest claims report, offering a generational lens on insurance trends and challenges. A key finding is the significant gap in income protection coverage among millennials, who are 55 times more likely to claim for income protection than for death benefits. Despite this reality, awareness and uptake remain low, presenting an opportunity for financial advisers to tailor their messaging to younger clients. Smit notes the inherent difficulties of selling insurance but emphasizes the need for advisers to prioritize income protection for this demographic, whose immediate risks align more closely with this benefit.

Bidvest Life addresses these challenges with innovative solutions, such as combining critical illness benefits with income protection. This approach simplifies the claims experience for policyholders facing serious health issues, offering a seamless process without the stress of ongoing claims validation. The result is not only financial support but also peace of mind during recovery.

Smit also highlights Bidvest Life’s claims performance, with 91.5% of claims approved and 73% paid within a month. These metrics underscore the company’s commitment to timely and effective client support. Additionally, he discusses the shift towards income-based death benefits, which offer more sustainable and behaviorally sound alternatives to traditional lump-sum payouts.

The report reflects Bidvest Life’s focus on innovation and client-centric solutions. By addressing the income protection gap, supporting financial advisers, and enhancing claims experiences, the company aims to create a more inclusive and effective insurance landscape for all generations.

Key Points

  • Generational Trends: Millennials are 55 times more likely to claim for income protection than for death benefits, yet the insurance gap persists.
  • Innovative Solutions: Combining critical illness benefits with income protection simplifies claims and offers consistent financial support during recovery.
  • Engaging Younger Clients: Financial advisers must adapt strategies to resonate with younger lives, emphasizing immediate risks over long-term concerns.
  • Claims Performance: Bidvest Life boasts a 91.5% claims payout rate, with 73% paid within a month, ensuring timely client support.
  • Income-Based Death Benefits: Offering income instead of lump sums for death claims promotes sustainability and aligns better with beneficiaries’ needs.
  • Adviser Challenges: The aging adviser pool limits access to younger clients, requiring new outreach strategies and tools.

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