In 2020, global debt exceeded US$ 220 trillion, as the largest one-year surge in world debt since World War II was marked. The main reason? Covid-19. Lockdowns, disruption and loss of income have flowered during the pandemic. In 2022, many consumers are still tackling debt, often turning to loan or debt consolidation providers. Now, these institutions have an opportunity to serve consumers well beyond their loan terms. Here’s why they should seize it.

  • In responding to the post-pandemic zeitgeist (a collective quest for recovery, stability and certainty), loan and debt consolidation providers can increase their market share by helping consumers not just to settle immediate financial problems, but to purchase peace of mind for the future, in the form of insurance.
  • Implementing insurance alongside loans or debt consolidation has the business benefit of transforming a loan provider from a one-time rescuer to a long-term partner in consumers’ eyes. This extended customer stickiness financially benefits not just the loan provider, but the bank or licensed insurer underwriting its services, with the transactional lifespan of customers increasing from a few months or years, to years or decades.
  • Along with more financial stability, 2022’s consumers also want a simpler experience of managing their finances. They want to tend to their financial affairs in as few places as possible. This trend for all-in-one financials supports the move by loan and debt consolidators to offer consumers a wider array of services under one umbrella, including insurance.
  • A decade ago, integrating insurance into a loans-based business model would have been unfeasibly difficult given the paperwork, logistics and administration involved. However, with the growth of cloud-based insurtech SaaS (software as a service) like Click2Sure’s, insurance products can be digitally embedded into financial institutions’ existing systems and implemented as an MVP in as little as a month, with no disruption to operations. The policies are easy for consumers to take up and manage via multiple online channels and, being semi-automated, prove easy for institutions to administrate at the back-end.
  • Globally, the insurance sector is set to advance its growth trajectory in 2022 (microinsurance, especially), as an increasing number of consumers seek to protect themselves against uncertainty. Investing in an insurance product line is a low-risk move with high-returns potential. If the product is delivered through SaaS, it becomes an even more compelling opportunity, since there are virtually no distribution costs and no hardware costs.
  • The implementation of modern cloud-based SaaS for insurance often stimulates traditional financial institutions to assess their wider business systems and discard older “legacy” systems in favour of more agile, more efficient cloud technology. Once a company’s ExCo sees an intuitive insurance product MVP in action, they are more likely to approve an enterprise-wide technology upgrade wholeheartedly. This supports future growth.
  • Even a year ago, 75% of institutions were prioritising digital transformation. The need for transformation is being driven, to a large degree, by the increasing number of digital-first fintechs disrupting, the traditional financial industry. 

By partnering with the right technology partner to transform customer onboarding, distribution and administration, traditional financial institutions can future-proof themselves against the fintechs – while leveraging their longstanding brand reputation in the market, which the newer fintechs don’t have.

  • Most importantly, insurance is a prudent strategic play for loan providers. While the loans and debt consolidation sector might be booming currently, thanks in part to Covid-19, what if the roaring ‘20s become a reality, consumers flourish and the loan industry slows?

    Consumers will always need insurance, whatever the state of the economy.

Making Click2Sure your insurance technology partner:

Click2Sure has a significant depth of financial sector insight and specialises in enabling traditional insurance companies to digitise and modernise the entire insurance chain, in line with customer expectations.

At the same time, our specialised software extends the insurance revenue opportunity to retailers, manufacturers, neo banks, microfinanciers and debt consolidators, for whom we have engineered an industry-specific white label solution. Once implemented, it slots insurance – a highly relevant purchase given loan applicants’ current challenges – seamlessly into the gap alongside existing loan or debt consolidation offerings.

To stimulate increased policy uptake, we engineer the insurance product via an omnichannel, digital-first approach. It can be distributed and accessed not just via your website but via app, WhatsApp, SMS, social media, and even QR codes on the back of bus seats or inside stores.

Once their new policy is live, the policy holder can easily manage it (updates, claims, enquiries, upgrades) via a dedicated Customer Portal, available on desktop or mobile.

At the other end of the insurance chain, our team offers ongoing support post-implementation, although we have found that most of our existing clients quickly familiarise themselves with the distribution and administrative side of their insurance line, with little difficulty. 

The solution includes dynamic product configuration, policy adjustment options, claims management access and financial management (which can be reported via Bordereau), standard reports, real-time dashboards, and valuable business intelligence based on consumers’ engagement with the insurance product. 

What types of insurance does Click2Sure implement for loan and debt consolidation providers?

  • Life insurance
  • Credit life 
  • Funeral policies
  • Home and household contents insurance
  • Short term insurance
  • Vehicle insurance
  • Medical gap cover

The bottom line

With many loan providers and debt consolidation companies already partnered up with banks or insurers, it is relatively simple for Click2Sure to provide the digital interface for both parties to become more consumer-centric, more data-driven and more profitable – beyond the limitations of fast little loans. 

Call the Click2Sure team on +27 (10) 045 4019 or mail to innovate and redefine the financial landscape with us.