Efma-Accenture Innovation of the Month draws attention to outstanding participants in the Innovation in Insurance Awards early in the award program. This month’s winning innovation goes to Vida Viva Bradesco, a Brazilian insurer that wants to change the view of life insurance with its unique pay-as-you-go model.
Historically, a life insurance policy was associated with protection for the family in the event of death. However, Vida Viva Bradesco has designed coverage for everyone from 18 to 80 years, which provides relevant coverage for each stage of life.
Bernardo Castello, Director of Bradesco Vida e Previdência explains the value of life insurance for all generations:
“Life insurance offers a range of benefits focused on the policyholder̵7;s quality of life, against unforeseen and unexpected losses. Therefore, it is a safe alternative to keep track of financial conditions if you can not afford bills due to illness, unemployment or temporary disability. Life insurance provides financial support in the most diverse situations, whether for those who have already achieved a condition of independence, with foster children or for those who are still dependent on income to support their families. case more advantageous to have a life insurance than to keep the money as an emergency reserve. “
The development of this product is a response to changes in customer needs and global trends. All over the world, consumers are looking for more flexible and customizable products that can be consumed on demand.
In Bradesco Vida e Previdência’s efforts to try to understand and absorb the concept of on-demand products for the life insurance market, they formed the idea for Vida Viva Bradesco, fully customizable and flexible insurance with 17 coverage and 12 assistance options.
The question remains, how does an insurer make a life insurance model on request work? Castello says, “Consumers are interested in on-demand insurance mostly because the price is adjustable based on the chosen use or features of the insurance. We see this as a trend that is here to stay in the lives of customers. When it comes to life insurance, we from simpler alternatives, which offer death protection with funeral assistance, to more complex and sophisticated products, including coverage that can be used in life, a factor that has affected the demand for insurance.The on-demand model gives the customer more flexibility, flexibility and autonomy to adapt the policy to their needs. This format also encourages a permanent review of what was agreed, so that the insurance always meets the real needs of this consumer. “
He adds, “On-demand insurance offers a relatively more affordable premium amount per insurance and greater flexibility in terms of coverage and assistance. In other words, the customer can activate or terminate the agreed product much more easily through self-service. This type of model has a customer-centric approach and offers products that correspond exactly to what the customer needs. ”
So far, the market has reacted positively. Between June 14 and August 31, 2021, $ 2.3 million in premiums and 18,000 insurance policies were issued in just two and a half months.
Castello concludes, “One of the latest changes in life insurance is the transition from the concept of protection to prevention. As an insurer, this means that we work with our customers to build policies that anticipate risks and become part of a more complete and consistent financial planning.
Vida Viva Bradesco is an example of how an insurer can pivot in response to customers’ needs and redefine the value of the product they sell in the process.
Hannah Moisand, Efma, Content Head of Content says, “We were pleased to see a traditional and often static insurance offer to customers in a relevant and engaging way. The support offered to customers through a hyper-personalized online experience is really in trend with it industry development needed to bring the insurance into the 21st Century.”
Applications for the Efma-Accenture Innovation in Insurance Awards are now closed. Read more about the selection process and details about the award ceremony.
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Disclaimer: This content is provided for general information purposes only and is not intended to be used in consultation with our professional advisors.