By Etienne Fourie, BrightRock National Distribution Executive

We have long been saying that the conversation about insurance should be shifting from “what’s the cheapest premium today?” to “what’s sustainable and valuable over the long term?” But even though BrightRock has been raising the issue of unsustainable funding patterns, this shift has been slow. For years, price has been the primary decision-making factor, often at the expense of product sustainability. Policies that are selected for having the cheapest premium, frequently escalate to the point that clients can no longer afford them, resulting in lapses and cancellations.

As advisers and insurers, we have a responsibility to help clients make better, more informed decisions, especially in the face of rising living costs and pressure on disposable income. Long-term insurance should be exactly that – to provide sustainable and affordable cover in the long term.

Here are three critical considerations that can help you align client needs with long-term value:

1. Policy Sustainability Over Price

While affordability is a legitimate concern, especially in an inflationary environment, sustainability must be the priority. Clients need products that won’t price them out of cover within five or ten years. Transparent and predictable funding patterns are crucial. Products with steep premium escalations are prone to lapse risk. In its latest industry statistics, ASISA has again raised a red flag around the high lapse experience in the industry. Our engagements with independent financial advisers indicate that both they and their clients are caught unawares by increases that far exceed the projections shared at quote stage.

At BrightRock, our approach is to provide clients with greater certainty and reduce the risk of policy lapses due to unexpected premium escalations. Our quote and policy documents provide detailed and accurate projections, so that clients and their advisers know exactly how much they will pay for every year of the policy’s duration.

For advisers and clients, this transparency builds trust and ensures that cover remains in place when it’s needed most.

2. The Growing Value of Professional Advice

Amid an increasingly complex financial environment, the role of the adviser has never been more critical. Clients are looking for guidance that goes beyond just product selection. They want holistic advice that connects their financial goals with the right cover and that not only looks at their immediate needs, but also the future sustainability and relevance of their risk protection cover.

3. Product Relevance and Flexibility

Clients are more likely to retain cover they understand and see value in. This means offering products that are designed to meet individual needs, not just at the point of sale, but throughout the client’s life journey.

Flexible products that can adapt as needs evolve are no longer a nice-to-have – they’re a regulatory and competitive imperative. The Treating Customers Fairly (TCF) framework requires that products behave as expected and provide clients with options to adjust their cover when life circumstances change. Clear, jargon-free documentation is key to helping clients engage meaningfully with their policies – both in terms of understanding the benefits they’ve purchased but also having a reliable view of how their premiums will change over time.

The Bottom Line for Intermediaries and Product Providers

As the industry evolves, the onus is on insurers and advisers alike to ensure that clients buy life insurance when they are young and healthy and maintain their cover so that – if they do need to claim, usually later in life – they are appropriately insured. By focusing on sustainability and product flexibility, we can collectively drive better outcomes for clients, and build a more resilient, client-centric insurance sector in 2025 and beyond.