LIBERTY SHORT-TERM INSURANCE: Bringing digital transformation to life
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LIBERTY SHORT-TERM INSURANCE: Shaking up South Africa’s insurance sector with digital disruption WRIT TEN BY
L AUR A MULL AN PRODUCED BY
JUS TIN BR AND
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Liberty Group and Standard Bank have joined forces to create Liberty Short-Term Centre of Excellence, an innovative hub where digitally disruptive tools are being brought to the fore.
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implicity, transparency and flexibility: this is a well-versed mantra at Liberty Group and it was also the shrewd
thinking behind its latest business venture. The South African business used to solely focus on life insurance but, more recently, the company 04
has made its first foray into the short-term insurance market, offering a quick and easy way to get car and household insurance through its brand-new unit, Liberty Short Term Centre of Excellence. Championing cutting-edge technologies, this business group is not only driving benefits for Liberty Group and its majority stakeholder Standard Bank, it’s also helping to deliver a customer experience quite like no other. Deepesh Thomas helped to build the shortterm insurance business from scratch. Now Chief Executive Officer at the unit, he says that the Centre of Excellence was initially conceived as a “technology firm which would build the insurance and technology capabilities that didn’t already exist in the group”. It would also provide greater portfolio differentiation, allowing both Liberty Group and
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Standard Bank to offer a wide range of solutions to its existing customers. Owning 54% of the firm, Standard Bank is not just a majority owner of the unit, it has also entered into a bancassurance agreement with the Centre of Excellence, allowing both entities to deliver complete financial services solutions to their respective clients. It’s been a vital relationship according to Leon Vermaak, Standard Bank Group Head of Insurance, who points out that, because the business is “unencumbered by legacy strategies and infrastructure” it is able to develop “future proof technologies”. He adds: “Keeping w w w.l i be r t y. co. z a
the innovation unit separate from
within minutes. “The product itself is
the mainstream business truly builds
significantly differentiated,” explains
confidence in its ability to pursue
Thomas, claiming that it was actually
innovation.”
“the first short-term insurance chatbot
One such technology which made
release in South Africa that allows for
the headlines was the Centre of
end-to-end performance”. Essentially
Excellence’s chatbot. The culmination
this means that the customer can go
of over two years’ worth of research,
and buy a short-term insurance product
the speedy bot allows customers to
through the chatbot in a matter of
access short-term insurance services
minutes. “At that time, it was the only
at their fingertips 24/7. There’s no
product on the market where you
endless paperwork or red tape. In fact,
could buy short-term insurance within
customers can secure insurance
eight minutes from end-to-end without
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“ Being a new business entity, we were afforded the luxury of building from scratch” — Deepesh Thomas, Chief Executive Officer at the Liberty Short-Term Centre of Excellence
CLICK TO WATCH : LIBERTY SHORT-TERM INSURANCE
having to talk to a call centre agent,” he
whatever way they prefer, whether
elaborates, highlighting how the usual
that’s through the mobile app or web
call centre process could take over half
interface. It’s a significant differentia-
an hour and is only available during office
tor, Thomas argues, because it’s truly
hours. With a personable demeanour
disrupting the customer experience
and easy-to-understand language, the
and giving them greater control. “For
chatbot is also available 24/7. As such
example, if a customer is using the
Vermaak argues that “it aligns itself with
chatbot or a digital channel and they
the needs of the online world” where
want to resume the enquiry at a later
clients “want insurers to be proactive,
date on a different channel then they
convenient and always available”.
can do that on the digital channel or
Not only is the chatbot a click
they can also switch and decide to talk
away, it’s also omnichannel, meaning
to an agent whenever they want”.
that customers can interact with it
Another key advantage of the chatbot w w w.l i be r t y. co. z a
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“ It was the only product on the market where you could buy short-term insurance within eight minutes from end-to-end without having to talk to a call centre agent” — Deepesh Thomas, Chief Executive Officer at the Liberty Short-Term Centre of Excellence
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that Thomas details lies in the technol-
APIs and services easily, for instance.”
ogy underpinning it: it’s fully built in the
Collaboration and the sharing of ideas
cloud, specifically Microsoft Azure.
is often touted as a key driver of success
“Being a new business entity, we were
in the technology market and it’s one
afforded the luxury of building from
which Vermaak echoes. “The insurtech
scratch,” Thomas explains. “The
world is by necessity one based on
biggest challenge that most financial
partnerships. Success is determined
services companies in South Africa
by bringing together unique capabili-
face is that they’ve built systems from
ties in a seamless manner, rather than
the 1960s onwards and lots of ineffi-
trying to build and own the ecosystem,”
ciencies have crept in. It also limits your
he observes, citing Microsoft’s cloud
flexibility if you want to roll out a new
platform as a critical asset. “We found
product. On the other hand, a cloud
Microsoft particularly supportive. We
platform allows you to integrate new
gained ‘early adopter’ status, which
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E X E C U T I V E P R OF IL E
Deepesh Thomas Deepesh Thomas is a qualified Chartered Accountant and MBA graduate from the University of Cape Town. He started his career in Audit, later moving to Management Consulting and finally specializing in Insurance where he was part of the core team that founded the Liberty Short-Term business. His passion lies in applying bleeding edge technology to complex business challenges and customer pain points. Outside of work, Deepesh can be found visiting new travel destinations in the hope of eventually checking-off every country in the world.
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“ Success is determined by bringing together unique capabilities in a seamless manner, rather than trying to build and own the ecosystem. We found Microsoft particularly supportive” 14
— Leon Vermaak, Standard Bank Group Head of Insurance
E X E C U T I V E P R OF IL E
Leon Vermaak Leon Vermaak is a seasoned insurance executive, having served as CEO of Santam, Sanlam and Telesure. He has a keen interest in Fintech and Insurtech and is guiding the digitisation of Standard Bank Group’s Insurance operations. Vermaak holds a B.Comm degree and MBA from the University of Pretoria as well as a PhD in Innovation Management from City University in London. When he’s not dabbling in insurance, he can be found climbing a mountain in some exotic, remote location.
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ensured deep technical support
transparency. With its intuitive
and knowledge transfer,” he says.
chatbot, it sounds like Liberty Short-
This chatbot could be seen as indicative of a wider shift in the insurance and insurtech markets.
Term Insurance is going the extra mile to make this a reality. But the company’s chatbot is just
Customer expectations are changing
the beginning: it has taken its innova-
too; through Liberty’s research,
tive approach one step further by also
one of the pervading messages that
introducing telematics to its mobile
emerged was that customers disliked
app. This will allow customers to
applying for insurance as they found
complete a two-week driving test that
the process cumbersome and difficult
will help the insurer calculate a fair pre-
to understand. They were looking
mium quote. For good drivers, it could
for more affordable and efficient
even result in savings. Named ‘Drivers
insurance services with greater
Test’, it measures how aggressively w w w.l i be r t y. co. z a
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“ In South Africa, safety’s a big concern to a lot of our customers, so we’ve built in a button on our mobile app, that when clicked can dispatch medical emergency assistance to you” — Deepesh Thomas, Chief Executive Officer at the Liberty Short-Term Centre of Excellence
customers drive or how distracted they tend to be whilst on the road. “We price you based on traditional insurance parameters but we also measure how you drive and adjust your premium downwards if you are a good driver,” describes Thomas. Telematics may not be a new innovation for the South African market, but Liberty Short-Term Insurance is putting a new spin on the traditional model. First of all, unlike typical insurers which ask you to install a cumbersome physical device, Liberty’s solution is mobile-based. Additionally, the insurer has also scrapped the idea of daily monitoring in favour of shorter trips which build up an accurate profile of a customer. “From the research we’ve conducted, we found that a customer’s average driving behaviour doesn’t deviate significantly throughout the year,” says Thomas. “Therefore, we can collect data from just 300km or 25 trips and understand who you are as a driver.” One other startling difference that Thomas underlines is the fact that many insurance companies offer loyalty or reward points following these tests which make it difficult for redemption. In contrast, Liberty offers a simple cash reduction on their premium. Once the Driving Test has been completw w w.l i be r t y. co. z a
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ed, the customer doesn’t have to have their driving habits tracked. However, on an opt-in basis, Thomas points out how they can choose to share more of their driving data with the firm in exchange for Uber credit for every 500km of driving information shared. In a world where ‘cash is king’, it’s proven to be a successful model. Safety is increasingly becoming a top talking point in the insurtech sector and it’s one which hasn’t gone amiss at the Liberty Short-Term Centre of Excellence. “In 18
South Africa, safety’s a big concern to a lot of our customers, so we’ve built in a button on our mobile app, that when clicked can dispatch medical emergency assistance to you. It can also dispatch roadside assistance, based
“ We are obsessed with ‘one-clickinsurance’ and we are also seeking to derive unique customer insights, enabled by access to various data sources, machine learning, as well as image recognition, and the Internet of Things (IoT)” — Leon Vermaak, Standard Bank Group Head of Insurance
on your live location that’s on your phone or it will dispatch home services,
implemented a lean and agile method-
such as a plumber or electrician.”
ology to drive efficiencies in software
With its digital transformation in full
development. It also strives to work
swing, innovation has become a key
with only the best software developers,
talking point at both Liberty Group and
relying on what Thomas describes as
Standard Bank. This is not only visible
a “fundamental relationship” with
through Liberty’s outward products
Retro Rabbit.
and services but it can also be seen
Looking forward, the firm has plenty
internally. For instance, the Liberty
of exciting innovations up its sleeve.
Short-Term Centre of Excellence has
“We are obsessed with ‘one-click- in-
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surance’ and we are also seeking
pursue next, Thomas feels that the
to derive unique customer insights,
business will remain laser-focused on
enabled by access to various data
three key values — simplicity, transpar-
sources, machine learning, as well as
ency and flexibility — which he believes
image recognition, and the Internet
is critical for insurtech success.
of Things (IoT)” says Vermaak. Meanwhile, Thomas highlights key trends like computer vision as an enticing technology for the future. Yet, regardless of what innovation it will w w w.l i be r t y. co. z a
Liberty Short Term Centre of Excellence T 0860 456 105 E info.libertyshort@liberty.co.za www.short-term.liberty.co.za | www.liberty.co.za