Submitted by
13/03/2017 Insurance Innovation


A seamless straight through process enabling a FNB Bank customer to request a quote for Funeral Cover and taking up a policy without the customer having to provide any information.

Innovation presentation

Funeral products in RSA are non-underwritten. Customers are generally not comfortable and able to share confidential and complex medical information across all channels. Given the relatively low value of the policies, it is also not be economically viable to have complex underwriting as with traditional life insurance.

FNB Bank has a significant amount of retail banking data, which provide FNB Life insight into its customers’ profiles. Most of this data have traditionally not been considered for life insurance, but revealed strong predictive properties for mortality.

FNB Life built a mortality model that prices Funeral policies using customers’ banking data (social economic data readily available to the bank at a customer level). This model enables FNB Life to price funeral policies for FNB banking customers in the background, without the need for them to provide any additional information at all.


FNB Life could extend its cover from R60 000 (most of the market is at this level) all the way to R200 000 (highest “non-underwritten funeral” cover available in RSA).

The customer profiling is also used to better understand and monitor the risk of the existing book and target preferred risk new business.

Improved customer profiling and better understanding of which customers provide better value to up sell.

Status: Fully implemented across Online, Branch and Call Centres.

Departments involved: FNB Life (Product, Actuarial, IT, Risk, Legal and Compliance, etc.) and FNB Bank (IT for every channel)


c.7000 policies sold since launch with cover amounts priced by model.

Uniqueness of the project

It uses banking data to price life insurance, instead of traditional life insurance factors (age, gender, health, previous conditions and illness, hereditary conditions, etc. )

It is a disruptive innovation as it fundamentally changes the sales process and customer experience. A customer can literally take out a policy in less than 2 minutes.

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