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.

Since its establishment, FNB Insure has disbursed over R700 million in preemptive life insurance claims. With a track record of handling more than 11,000 claims, averaging R2 million per month over the past year, the company has demonstrated its proactive approach in assisting beneficiaries. Notably, the largest claim processed amounted to R6 million for life cover and R100,000 for a funeral policy.

Evodia Phahlane, the COO of FNB Insure, emphasizes the significance of their preemptive claims process. By initiating claims on behalf of beneficiaries who may be unaware of existing policies, FNB Insure has alleviated financial strain for families coping with the loss of breadwinners. This proactive payout strategy underscores the company’s dedication to prioritizing customer needs during critical moments.

Furthermore, Phahlane underscores FNB Insure’s commitment to comprehensive financial services. As an integrated provider, they offer advice spanning transactional, credit, savings, investments, and insurance domains. This holistic approach empowers customers to manage their finances effectively and safeguard their families’ well-being.

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.