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FNB goes direct on insurance

Direct short-term insurance being launched to client base – with eBucks rewards incentives.

JOHANNESBURG: FNB is bringing a direct short-term insurance offering to its clients with a monthly no-claim reward in eBucks.

Johan Nagel, CEO of FNB Insurance, told the media at a briefing in Johannesburg on Thursday that they have been working on the product offering for nearly a year and that it has been launched to FNB staff already. The call centre is up-and-running but the launch to clients will only come around September when an aggressive advertising campaign will kick off.

The insurance is underwritten by RMB Structured Insurance Limited and issued, brokered and administered by Mutual and Federal.

“We are entering into a very tough, some would say saturated market. We won’t go into the market with something that’s just average,” he said.

The offering (which includes car, home or personal goods cover) won’t be offered to the market, but only to FNB customers and Nagel believes that it offers very competitive pricing as FNB has unique data on its customers that can provide targeted and precise risk-pricing.

The rewards come in the form of eBucks. If you don’t claim in a certain month you get 5% of your premium in eBucks back the next month. For a premium of R1 000 per month that is a possible total of eB6 000 per year (R600) and puts you on Level 1 for earning rewards. If you don’t claim for a consecutive period of 12 months you get another eB6 000 (Level 2) and if you already earn fuel or airtime rewards you get another eB6 000 (Level 3). This brings your total savings (in rand terms) to R1 800 for the year, or 15%. FNB lists other benefits of the offering as an affordable premium, a fixed excess, retrenchment premium waiver, free international SOS cover and the functionality to view your policy online.

Earning the maximum amount of eBucks can become quite complicated if one looks at the latest set of rules from FNB, but Nagel said that for the insurance product it is very easy and simple to earn with the basic three levels as set out.

“We still think eBucks [is] the leading reward system and has a very strong pull,” Nagel said. To earn these rewards your accounts with the bank need to be in good standing and should be linked to earn eBucks.

He said that the brief from the FNB executive committee was not necessarily to focus on income, but rather to penetrate the customer base with the insurance product. “We are bringing insurance into banking,” he said.

eBucks reviews its rewards rules once a year, but Nagel said the intention is not to change the insurance eBucks earning rules in the foreseeable future.

Keith Boyle, head of marketing at FNB Insurance, said that using the current gold and platinum cheque account holder base, over 65% of those clients will qualify for earning Level 3 rewards (the full 15% back on your premium in a year) on the direct insurance product.


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