FNB is expanding its insurance business with the launch of FNB Short-Term Insurance for car and home, as well as free cover for purchases made with FNB Virtual Cards. 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. Furthermore, customers who make purchases with their FNB Virtual Card get free Purchase Protect cover for the first 30 days post purchase.
Jacques Celliers, CEO of FNB, says, "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 roll-out 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 that the short-term insurance sector is ripe for platform disruption and innovation."
The sentiment is echoed by Raj Makanjee, CEO of FNB Retail, who says that "insurance premiums, especially car and home insurance, account for a significant percentage of financial commitments among FNB's individual customers. As a result, our new solutions will go a long way towards ensuring that we offer holistic money management support to customers across several areas of their lives. The additional benefits we provide through eBucks, and premium discounts ensure that customers get more value from managing and consolidating their financial affairs with FNB. We’re very excited to partner with our customers on their money management journey."
According to Lee Bromfield, CEO of FNB Insurance, “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. In line with our focus on helping customers, those who buy homes and cars financed through FNB no longer need to go to any third-party provider for insurance cover, and they get rewarded.”
Despite being a relatively new provider in insurance, FNB has already established key benchmarks for the insurance sector through FNB Life. It has pioneered the digitisation of insurance solutions, claims processes, and policy transparency. FNB is the only life insurance provider in SA that leverages Home Affairs resources to check for deaths and process a proactive pay-out, helping customers in times of need. Over the years, FNB has received top accolades for customer satisfaction and its relentless efforts to pioneer efforts to deliver insurance solutions through a digital platform.
In terms of claims, FNB already pays out customers’ claims for funeral insurance within 24 hours, with 1 in 5 claims paid out in under 30 minutes, and 52% paid within 2 hours. Launching short-term insurance allows FNB to disrupt the full insurance spectrum by setting new standards for easier take-up, transparency on insurance policies, and helping our customers through an efficient claims process. FNB is committed to surpassing these benchmarks with its short-term insurance business.
To take up any insurance solutions, customers can go to the menu section of the FNB App, scroll and click on insurance, select the type of insurance they want, and submit their application for further assessment. FNB and RMB Private Bank customers who have existing relationships with the bank do not have to populate their details, which means the process of initiating an application only takes a few seconds.