BRIGHTROCK'S INNOVATIVE BUSINESS ASSURANCE MODEL


Business assurance should be structured to meet the client’s changing need so when an entrepreneur needs Business Assurance, Cover should be bought based on needs indicated below and should be structured as level cover with the option to buy up cover when the value increases, free of underwriting and required term should be as per the actual business need.

Note below Traditional offering versus the new technology that is available:

Traditional product structures — whether providing protection for key person, contingent liability or a buy-and-sell — do so through a single capitalised lump-sum that is priced for the maximum term and usually set to grow over time. This is generally at odds with the nature of the business insurance needs themselves, and when these change (or fall away) the flexibility to accommodate and cover these changes is also lacking, meaning clients lose all the value they’ve been building up, along with their insurability.

More about the different types of business insurance

  • Buy-and-sell — this provides surviving partners with the necessary cash to buy their deceased or permanently disabled partner ‘s share in the business;

  • Key person cover — this is used to compensate the business for the operational loss it would sustain if a key person dies or becomes permanently disabled;

  • Contingent liability insurance — this type of insurance enables a business to repay a debt for which an individual has provided personal security if that person dies or becomes permanently disabled.

Business assurance should be structured to meet the client’s changing need so when an entrepreneur needs Business Assurance, Cover should be bought based on needs indicated below and should be structured as level cover with the option to buy up cover when the value increases, free of underwriting and required term should be as per the actual business need.

Note below Traditional offering versus the new technology that is available

Traditional product structures — whether providing protection for key person, contingent liability or a buy-and-sell — do so through a single capitalised lump-sum that is priced for the maximum term and usually set to grow over time. This is generally at odds with the nature of the business insurance needs themselves, and when these change (or fall away) the flexibility to accommodate and cover these changes is also lacking, meaning clients lose all the value they’ve been building up, along with their insurability.

More about the different types of business insurance

  • Buy-and-sell — this provides surviving partners with the necessary cash to buy their deceased or permanently disabled partner ‘s share in the business;

  • Key person cover — this is used to compensate the business for the operational loss it would sustain if a key person dies or becomes permanently disabled;

  • Contingent liability insurance — this type of insurance enables a business to repay a debt for which an individual has provided personal security if that person dies or becomes permanently disabled.

Key points to consider when buying business insurance

  • Affordability: In the early stages of a business, entrepreneurs have to juggle the conflicting demands of large capital expenditure, a significant debt liability and limited cash-flow. It’s vital that premiums are as low as possible, while delivering the required level of protection. By matching the duration and behaviour of cover exactly to that of the underlying need, cover is more efficient. We find that this efficient structure saves clients an average of 30% on their premiums from day one — translating into around 40% more cover today for the same premium rand;

  • Relevance: Once a debt liability has been met, there’s no longer a requirement to provide cover for it. Similarly, as a business evolves, its reliance on specific key individuals is likely to change or lessen and eventually end, impacting on the nature and extent of the key man cover required;

  • Future flexibility: Because most business needs have a natural lifespan, the ability to later convert or move the cover is crucial, for example being able to convert premiums for business cover to personal cover, free of underwriting.

Many of these future changes in needs can be anticipated with a fair amount of certainty and business insurance products should offer the ability to structure cover taking these future changes into account from the outset.

Note the below NEW technology at BrightRock which provides flexibility, future guaranteed insurability and priced correctly for the specific need.

For example, a business owner may know that his vehicle fleet will be replaced every four years and wish to structure his business’s debt cover to increase in line with inflation every four years. BrightRock offers unique features that allow this level of flexibility. While it’s possible to anticipate certain future developments such as the date that a debt will have been paid off, it’s also very likely that new needs will arise or the business’s growth will play out differently than expected. Future insurability and access to cover with minimum hassle is a critical requirement. While BrightRock prices cover for the appropriate need to maximise efficiency, we underwrite a client’s premiums for life. This means, should their needs change in future, business owners could redirect their premiums to different needs and insurance events (even to personal cover) any time after three years, free of medical underwriting. They also have the ability to buy more cover free of medical underwriting.

  • Affordability: In the early stages of a business, entrepreneurs have to juggle the conflicting demands of large capital expenditure, a significant debt liability and limited cash-flow. It’s vital that premiums are as low as possible, while delivering the required level of protection. By matching the duration and behaviour of cover exactly to that of the underlying need, cover is more efficient. We find that this efficient structure saves clients an average of 30% on their premiums from day one — translating into around 40% more cover today for the same premium rand;

  • Relevance: Once a debt liability has been met, there’s no longer a requirement to provide cover for it. Similarly, as a business evolves, its reliance on specific key individuals is likely to change or lessen and eventually end, impacting on the nature and extent of the key man cover required;

  • Future flexibility: Because most business needs have a natural lifespan, the ability to later convert or move the cover is crucial, for example being able to convert premiums for business cover to personal cover, free of underwriting.

Many of these future changes in needs can be anticipated with a fair amount of certainty and business insurance products should offer the ability to structure cover taking these future changes into account from the outset.

Note the below NEW technology at BrightRock which provides flexibility, future guaranteed insurability and priced correctly for the specific need.

For example, a business owner may know that his vehicle fleet will be replaced every four years and wish to structure his business’s debt cover to increase in line with inflation every four years. BrightRock offers unique features that allow this level of flexibility. While it’s possible to anticipate certain future developments such as the date that a debt will have been paid off, it’s also very likely that new needs will arise or the business’s growth will play out differently than expected. Future insurability and access to cover with minimum hassle is a critical requirement. While BrightRock prices cover for the appropriate need to maximise efficiency, we underwrite a client’s premiums for life. This means, should their needs change in future, business owners could redirect their premiums to different needs and insurance events (even to personal cover) any time after three years, free of medical underwriting. They also have the ability to buy more cover free of medical underwriting.

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