First National Bank (FNB) is expanding its insurance business with the introduction of short-term insurance for car and home, sold via its digital banking platforms.
The big four bank says, by logging into their profiles, choosing the insurance option, answering the relevant questions and accepting the quote, customers will be able to take up cover within a few minutes.
Speaking at the virtual launch this morning, Jacques Celliers, CEO of FNB, noted that despite being a relatively new provider in insurance, FNB has already established key benchmarks for the insurance sector through FNB Life.
In 2015, FNB was granted a licence to launch FNB Life, and selected software firm Sapiens Alis as its policy administration system partner.
In 2017, the FirstRand-owned bank introduced life insurance cover offerings on its digital banking platforms.
The bank claims to be the only life insurance provider in SA that leverages IT resources from the Department of Home Affairs to check for data on deaths and processes a proactive pay-out, helping customers in times of need.
"This is a giant stride on our journey to becoming an integrated financial services provider of choice to individuals and businesses. Insurance is a vital cog in meeting the needs of our retail and commercial customers in a relevant and contextual manner through a digital platform that they already trust.
“The rollout of short-term insurance solutions complements our strong transactional and lending businesses, as well as our maturing investment and life insurance businesses. This demonstrates our dedication to putting our customers at the centre of our solutions. We believe the short-term insurance sector is ripe for platform disruption and innovation."
In 2020, FNB introduced short-term insurance solutions for retail and business customers as a way of mitigating coronavirus risks.
This week, the bank announced it is offering its customers the option of taking out a retirement annuity via its banking app, in less than three minutes.
FNB says to date, it has garnered over four million clients on its mobile app and over 80 million monthly logins.
The bank says it pays out customers’ claims for funeral insurance within 24 hours, with one in five claims paid out in less than 30 minutes, and 52% paid within two hours.
Also speaking at the event, Lee Bromfield, CEO of FNB Insurance, pointed out that launching short-term insurance allows the bank to disrupt the full insurance spectrum by using innovation to allow on-boarding and transparency on insurance policies, while helping customers through an efficient claims process.
“FNB has been rolling out its short-term insurance solutions in phases, with over 250 000 customers on its books across retail and commercial products.
“The depth and breadth of FNB’s relationships with millions of customers provides a unique opportunity to make significant inroads in short-term insurance. This was also a key factor in the success of our life insurance business when we entered the market in 2015, and that business quickly developed to become one of the leading disruptors in life insurance.”
FNB and RMB Private Bank customers who take up short-term insurance from FNB could get up to 15% of their premiums back in eBucks, while those that work from home could get an additional discount of up to 20% off their car insurance premiums.
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