CAPE TOWN – The amended Policyholder Protection Rules (PPR) will have a significant impact on long-term insurance especially from a Group Risk perspective, according to Annalie Terblanche, product manager at SilverBridge.
Terblanche said: “With these changes taking effect from October last year, insurers must significantly change not only how they communicate with policy holders, but also in the way group risk cover is designed, marketed, and managed from a claims perspective.”
Under the amendments, the definition of a policyholder in a group scheme changed from just being the employer or retirement fund, to now include all the members themselves. Insurers must therefore provide more detail around what cover is provided, possible exclusions, how costs and premiums are structured, the claims processes, to name just a few elements.
“The cornerstone of this will revolve around how effectively insurers have captured data in their systems. If their databases are not comprehensive or have not been kept updated with all relevant fields (think contact details, identity numbers, names, and so on), there is an administrative nightmare waiting to happen,” said Terblanche.