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The Efma-Accenture Innovation of the Month recognizes outstanding entrants to the Innovation in Insurance Awards early in the awards program. This month’s winning innovation goes to Vida Viva Bradesco, a Brazilian insurer that is looking to change the perception of life insurance with their unique, pay-as-you-go model.
Historically, a life insurance policy was associated with protection for the family in case of death. However, Vida Viva Bradesco has designed coverage for anyone from 18 to 80 years old, which provides relevant coverage for each life stage.
Bernardo Castello, Director of Bradesco Vida e Previdência explains the value of life insurance for any generation:
“Life insurance offers a series of benefits focused on the quality of life of the policyholder, against unforeseen and unexpected losses. Therefore, it is a secure alternative to keep financial conditions in order if you cannot afford bills due to illness, unemployment, or temporary disability. Life insurance provides financial support in the most different situations, whether for those who have already achieved a condition of independence, with children raised, or for those who still depend on income to provide to their families. With the various coverages and assistances available, in many cases, it is more advantageous to have life insurance than to keep the money as an emergency reserve.”
The development of this product is in 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 an on-demand life insurance business model work? Castello says, “Consumers are interested in on-demand insurance mostly because the price is adjustable based on the chosen usage or features of the policy. We see this as a trend that is here to stay in customers’ lives. In the case of life insurance, we have from simpler options, which offer death coverage with funeral assistance, to more complex and sophisticated products, including coverage that can be used in life, a factor that has influenced the demand for insurance. The on-demand model provides the client with more flexibility, agility, and autonomy to fit the policy to their needs. This format also encourages a permanent review of what was contracted, 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 policy and greater flexibility in terms of coverage and assistance. In other words, the customer can activate or cancel the contracted product much easier through self-service. This type of model takes a customer-centric approach, offering products that meet exactly what the customer needs.”
So far, the market is responding positively. Between June 14 and August 31, 2021, R$ 2.3 million in premiums and 18,000 policies were issued in only two and a half months.
Castello concludes, “One of the key recent transformations in Life Insurance is the shift from the concept of protection to that of prevention. As an insurer, this means working alongside 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 customer needs and redefine the value of the product they are selling in the process.
Hannah Moisand, Efma, Head of Content says, “We were delighted to see a traditional and often static insurance offering brought to customers in a relevant and engaging way. Indeed, the support offered to customers through a hyper-personalised online experience is right on trend with the industry developments needed to bring insurance into the 21st Century.”
Submissions to the Efma-Accenture Innovation in Insurance Awards are now closed. Find out more about the selection process, and details on the awards ceremony.