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The Efma-Accenture Innovation of the Month awards outstanding participants in the Insurance Innovation Award at the start of the awards program. This month’s winner is Vida Viva Bradesco, a Brazilian insurer that aims to reimagine life insurance with its unique pay-as-you-go model.
Historically, a life insurance policy has been associated with protecting the family in the event of death. However, Vida Viva Bradesco has developed coverage for everyone aged 18 to 80 that provides appropriate coverage at every stage of life.
Bernardo Castello, director of Bradesco Vida e Previdência, explains the value of life insurance for any generation:
“Life insurance offers a range of benefits focused on the quality of life of those insured against unforeseen and unexpected losses. As such, it is a safe alternative to keeping your finances in order if you are unable to pay your bills due to illness, unemployment, or temporary disability. Life insurance provides financial support in a wide variety of situations, whether it be for those who have already reached a state of independence, who have children, or those who are still dependent on income to provide for their family. With different coverages and types of assistance, in many cases it is more profitable to have life insurance than to keep money as a reserve in case of unforeseen circumstances.
The development of this product is in response to changing customer needs and global trends. Consumers around the world are looking for more flexible and customizable products that can be consumed on demand.
In Bradesco Vida e Previdência’s quest to understand and internalize the concept of on-demand products for the life insurance market, they formed the idea of Vida Viva Bradesco, a fully customizable and flexible insurance policy with 17 coverage options and 12 assistance options.
The question remains, how can an insurance company make the on-demand life insurance business model work? Castello says: “Consumers are interested in on-demand insurance mainly because the price is adjusted based on the chosen use or policy characteristics. We see this as a trend that should remain in the lives of our clients. In the case of life insurance, we have from simpler options that offer death through funeral insurance, to more complex and sophisticated products, including life insurance, a factor that has influenced the demand for insurance. The on-demand model provides the client with more flexibility, flexibility, and autonomy so that they can tailor the policy to their needs. This format also encourages constant review of the prisoner so that the insurance always meets the real needs of this consumer.”
He adds: “Insurance on demand offers a relatively more affordable premium per policy and more flexibility in terms of coverage and assistance. In other words, it is much easier for the buyer to activate or cancel the contracted product through self-service. This type of model takes a customer-centric approach, offering products that are tailored exactly to the needs of the customer.”
While the market reacts positively. Between June 14 and August 31, 2021, R$ 2.3 million in premiums and 18,000 policies were issued in just two and a half months.
Castello concludes: “One of the key recent developments in life insurance is the shift from the concept of protection to the concept of prevention. For an insurer, this means working with our clients to create policies that anticipate risk and become part of a more complete and consistent financial planning.
Vida Viva Bradesco is an example of how an insurance company can change in response to customer needs and in the process redefine the value of the product it sells.
Hanna Moisand, Efma, Head of Content, says: “We were delighted to see that the traditional and often static insurance offering was presented to customers in a relevant and attractive way. Indeed, the support offered to customers through a hyper-personalized online service is in line with the industry trends needed to bring insurance into the 21st. Century.
The Efma-Accenture Innovation in Insurance Awards call for applications has closed. Learn more about the selection process and details about the awards ceremony.
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Disclaimer: This content is provided for general informational purposes and is not intended to be used as a substitute for consultation with our professional advisors.
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