View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
  2. Distribution channels
December 19, 2011updated 13 Apr 2017 8:46am

First National Bank slashes life cover costs in South Africa

To ensure that our customers are getting the best possible value for money, we have stripped out all unnecessary distribution costs, such as advertising and broker fees, enabling us to pass the saving on to our customers," said Johan Nagel, CEO of FNB Insurance.

By LII editorial

Aiming to capture a big slice of the South African life insurance market, one of the country’s big-four banks, First National Bank (FNB), has launched aggressively-priced products to its customers. The products are available online or through the bank’s call centre.

“To ensure that our customers are getting the best possible value for money, we have stripped out all unnecessary distribution costs, such as advertising and broker fees, enabling us to pass the saving on to our customers,” said Johan Nagel, CEO of FNB Insurance.

Dependant on certain criteria, such as an applicant’s age, income and gender, FNB will offer up to ZAR1m ($125,000) life cover for up to 50% less than competitor market offerings.

Customers applying for cover, which encompasses death, incapacity and retrenchment benefits, are required to complete a telephonic application and answer a few medical questions.

According to FNB, only 3.8m of South Africa’s 12.4m income earners currently have life insurance cover.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Life Insurance International