A tsunami is heading for the world of insurance, destined to halve the prices of premiums. The secret to the new generation of insurance is technology, which will enable almost any group of people to have their own insurance company, delivering their own products right to the customers’ phones.
“We will be offering an ‘Insurance Company in a Box’, ready to assemble, and ready to go,” said Adam Samie, the insurance business head at technology group Leapfrog Global.
“We are already signing-up clients, who are excited by the way we offer them the exact insurance set-up they need, and not all the expensive bells and whistles which you find with the legacy insurance players. This way they get to offer their membership exactly what is required, for a lot less cash.
“Why charge them for stuff they don’t need, as currently happens in the market. Do clients need a funeral policy that buys them groceries for 6 months? No.
“Getting rid of the frills, and bulky administration costs, means we will be reducing premium costs by at least 50%. We predict that these next-generation insurance companies will have products at half the price with double the quality.
“Many insurance companies currently treat their customers as criminal suspects when they try to claim, but we have a model which treats people with respect, dignity, and helps to form a trusting partnership.”
Leapfrog Global’s head of technology Robert Boccia explained that the big difference between the new ‘Insurance Company in a Box’ and the way the established players operate lies in a custom-designed delivery mechanism.
“Our technology can ensure that the product is offered and delivered to a chosen group of people, and that they can interact with the insurers in the easiest, most convenient, and most time-efficient way.
“We thus enable the establishment of a tailor-made insurance company. It can offer funeral policies, car and life insurance, or a combination of these and other offerings. “We provide the IT backbone to make it work, and we can set things up exactly the way our client wants them.”
The CEO of Leapfrog Global Martin Humphries said interested groups who want to sign up for what he calls “our new technology-enabled insurance disrupter” include trade unions, sporting groups, church organisations and stokvels.
Samie warned that current high insurance prices have made insurance unaffordable for many people, leaving them uninsured, and thus vulnerable when disaster strikes.
“The cost of traditional products has reached a point where more and more people are opting out of any kind of insurance. The consequence, say, for motor is that fewer than 35% of all motor users are insured.
“The economic cost is a major problem – if more cars could be insured, there would be an immeasurable overall boost in terms of jobs and revenue generated. “More vehicles would be properly repaired and maintained, leading to the development of new businesses such as panel shops – bringing thousands of new jobs and businesses to areas which are underdeveloped, such as townships. In addition, the improved safety of roadworthy vehicles would save many lives, and stem the accompanying societal disruption.
“Bringing insurance to the uninsured is a game-changer for South Africa.” Humphries said that most of the people who don’t have insurance are the ones who need it the most.
“Offering affordable insurance, such as insuring the shacks which were destroyed in the recent Hout Bay fires, would mean the victims would no longer be destitute,” he suggested.
“Funerals can be expensive and often the family has no resources when a loved one dies. Affordable funeral cover could reduce the financial strain at a time when a family is in mourning.
“If you can deliver a great product at affordable prices to the most vulnerable, you can then do the same to the high net worth community.
“We are open for business now with our ‘Insurance Company in a Box’.
“We can do this by bringing technology enablement, a deep knowledge of the workings of the insurance industry, and the right business model.
“Just watch this space…..”