A case in point is how Hollard’s funeral insurance plan has evolved over the last 15 years since it was first launched in 1999.
With millions of people buying funeral insurance in South Africa every year, the funeral insurance sector is one of the most competitive insurance markets in the country. To stay ahead of competitors, Hollard responded to customer demand by changing its cover from a fairly basic to offering highly flexible benefits that meet the specific needs of individuals.
Hollard’s funeral cover originally offered three levels of payout for funerals: R3000, R10 000 and R20 000. Cover was not just for the individual, but also for their partner and children, with an additional option to cover their parents.
While this cover suited families well, customers who were single felt they shouldn’t have to pay the same premiums for a family they did not have. As a result, in 2007 Hollard introduced a lower-cost “Member Only” plan that covered a single person.
The next product evolution came in June 2008, when Hollard added two higher levels of cover – R25 000 and R30 000 – in response to the rising cost of funerals. Besides the increasing costs, some customers also wanted to ensure that they had enough money to hold a truly dignified funeral for themselves or their family members.
In 2008, market research revealed that many families suffered huge financial consequences when a main income earner passed away. Besides having to cover the costs of the funeral, surviving family members were now also burdened with the costs of everyday expenses that the main breadwinner was no longer covering. The optional Monthly Provider benefit was designed to assist with this need, where a lump sum is paid out over 12 months after the funeral for household expenses such as groceries and school fees.
Following the Monthly Provider benefit, Hollard continued to add more benefits to its policy for expenses beyond just the funeral. In 2009, the company introduced the memorial benefit that provides financial help with the expenses related to unveiling or memorial ceremonies. The company also partnered with another company to allow customers to add the vehicle access benefit service. This service provides the customer or a family member with the use of a car for 3 or 6 days to make all the funeral arrangements.
Since 1999, Hollard has been fine-tuning their insurance offering by listening closely to what their customers have to say. As a result of this, they’ve been able to remain a major player in a highly competitive industry. Beyond 2014, Hollard’s funeral insurance policy will continue to evolve to keep in line with consumer demand.
Read more about Hollard's Funeral Insurance or contact us for a quote.
Hollard Life Assurance Co. Ltd (Reg No 1993/001405/06) is an authorised Financial Services Provider.
