Donald Gordon’s creative spirit lives on; 5yo Brightrock sparkles, API +72%

Donald_Gordon_August_2016
Sir Donald Gordon, founder of Liberty.

Over the next couple decades, South Africa is poised to produce an army of 400m and 800m champions – such will be the power of world-beating role models Wayde van Niekerk and Caster Semenya. The founder of Liberty Life, Donald Gordon, did much the same in the country’s insurance industry. Sir Donald, the only entrepreneur man to create Top 100 companies in both SA and the UK, used innovation and an entrepreneurial spirit to surpass all expectations. His business served as the nursery for a generation of world beating insurance executives. Discovery, founded by Liberty old boys Adrian Gore and Barry Swartzberg, might be best known for its medical aid business, But as great a success story is its life insurance business both in SA and, increasingly, in the UK where it returned to the Gordon roots with Vitality, one of the fastest growing life insurance companies in the land of Brexit. Its success is rivalled at home by a gang of former Liberty/Discovery execs who have built the successful Brightrock, a new-era life insurance business whose first five years matches anything achieved by its forerunners. At Biznews, we’ve watched the Brightrock growth from up-close, as virtually from our inception the company has sponsored our Thought Leaders section. Numbers released yesterday celebrating five years since Brightrock’s inception show a business in rude health. With 500 000 lives insured and annual premium growth of 72% its another credit to Gordon’s example – his spirt of free enterprise. – Alec Hogg

From Brightrock

Five years since its inception, and four years since its entry into the highly competitive life insurance market, needs-matched life insurance provider BrightRock announced that they now insure over 500,000 lives, have paid over R220 million in claims to date and have R123 billion total cover in force.

The company’s needs-matched product offering has stood it in good stead over the past year. While the South African insurance industry has been stagnant with a below-inflation growth of just 4.5%i, BrightRock has shown a year-on-year growth of 72% in its annual premium income at the end of its 2015/16 financial year, reflecting a total annualised premium income of R595 million for cover in force.

Brightrock_lovechange_logo_August_2016Reflecting on the company’s performance to date, Schalk Malan, executive director of BrightRock, explains: “When we started BrightRock, we wanted to bring about change in the industry by providing cover that is both relevant and appropriate to each and every individual client, and continues to match the needs of clients as their lives change. Four years after our market entry, we are pleased to see the substantial take-up of our needs-matched product offering. The flexible design of our cover also allows us to provide up to 48% more cover for the same premium, allowing greater affordability initially and over the long term.”

“Our novel approach to insurance definitely resonates with South African consumers,” says Malan, who co-founded BrightRock with fellow executive directors Sean Hanlon, Leopold Malan and Suzanne Stevens.

“In our first year, 47% to 53% of our policyholders wanted traditional, lump sum cover. However, an overwhelming 71% of our policyholders now opt for needs-matched insurance through product options that allow them to shift their cover as their needs change.”

BrightRock’s strong performance at claim stage is also testament to the company’s growing reputation in the individual risk insurance market. “BrightRock has paid over R220 million in claims so far, of which the highest claim was R16 million,” says Malan. “In addition, there has been a 85% increase in the total amount that BrightRock has paid out for claims between 2015 and 2016.”

BrightRock’s founders and Executive Directors (from left): Leopold Malan; Suzanne Stevens; Schalk Malan and Sean Hanlon.
BrightRock’s founders and Executive Directors (from left): Leopold Malan; Suzanne Stevens; Schalk Malan and Sean Hanlon.

“We are particularly excited about our claims performance, as we are paying out claims many of our competitors wouldn’t pay, thanks to our comprehensive claims definitions and the removal of outdated barriers to claim,” says Malan.

In addition to BrightRock’s significant growth, they also announced the introduction of the Advanced Underwriting option, an innovation that makes them the first provider in the intermediated, fully underwritten individual life cover market to have waived the common industry requirement of HIV testing in the underwriting process. This option is available for clients who select tele-underwriting and meet the qualifying criteria.

BrightRock remains committed to developing risk solutions that are consumer-centric and keep pace with the ever-changing needs of their policyholders.

“We will continue to lead the way in giving our clients greater long-term certainty and better value, by allowing them to co-create their life insurance products with one of our 3,400 accredited independent financial advisers. We believe that our customised approach and personalised service will ensure that we celebrate many more impressive milestones in the future,” concludes Malan.

BrightRock was founded in 2011 and entered the intermediated individual risk market in 2012. Since then, it has grown substantially, as shown by the latest figures at the end of the financial year, 30 June 2016:

  • Total cover in force: R123 billion
  • Total annualised premium income (API): R595 million
  • Year-on-year growth in Annual Premium Income: 72%
  • Increase in amount paid out for claims between 2015 and 2016:85%
  • Number of accredited independent advisers: 3 400
  • Total claims paid to date: > R220 million
  • Highest claim paid to date: R16 million
  • Lives insured: > 500 000ii
  • Employees: > 350
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