Dollar DiveR$ifier Qorus Reinvention Awards - MEA 2025 - Winner

Objectives and Reasons: The objective of the Dollar DiveR$ifier is to enable advisers to easily diversify part or all of their clients' cover. With many South African clients having offshore liabilities, this feature offers a simple way for them to secure offshore protection. It provides access to affordable risk protection and serves as the most accessible starting point for offshore risk planning for all our adviser clients. Diversifying risk benefits by taking out cover denominated in dollars is a strategic safeguard against fluctuations in the value of the South African rand. This is arguably even more important than diversifying investments, as the timing of a life-changing event is unpredictable, and the need for protection can arise at any time. Risk cover in dollars not only offers clients a powerful tool to hedge against domestic economic volatility and currency depreciation but also helps them mitigate the risk of losing purchasing power. This is especially relevant in times of economic instability when the rand-dollar exchange rate typically worsens as global investors shift from emerging market economies to low-risk, safe-haven investments in developed markets.

Additionally, the unpredictability of future healthcare needs calls for careful planning today. While current medical expenses may be denominated in rands, the possibility of requiring specialised treatments, medical devices, or imported medicines introduces indirect exposure to non-local liabilities. At the uncertain time of a claim, a weaker rand could inflate these costs, potentially impacting access to medical services and technology. It is crucial to acknowledge the global pricing standards of certain treatments and consider the inherent risks of currency fluctuations on medical costs, ensuring a proactive approach to securing comprehensive cover. This highlights the widespread need for offshore risk protection which offered through the Dollar DiveR$ifier.

Inspiration: The inspiration behind this feature comes from the fact that the dollar has historically been a more stable currency and has appreciated more than expected against the rand over the long term. Additionally, the demand for our Dollar Life Plans has been steadily increasing from 2017 to 2023, with the number sold increasing by more than 10-fold over this period. Hence, introducing the Dollar DiveR$ifier is seen as the perfect way to make it easier for our advisers to quote for this cover.

We also wanted to find a way to further encourage advisers who have not quoted dollar cover before to recognise that all clients should have access to authentic global cover, enabling them to diversify their risk protection and address a broader range of financial needs and circumstances. By utilising the Dollar DiveR$ifier, advisers can help protect their clients' assets through offshore risk protection, ensuring comprehensive cover.