Building Bridges in Estate Solutions

The life insurance industry has moved beyond competing on price alone, it's time to compete on comprehensive solutions. In this revealing conversation, Steve Piper, Head of Underwritten Intermediary Sales at Hollard Life Solutions, discusses how their new estate planning platform is revolutionising financial advisor practices and addressing critical gaps in South African estate planning.

The numbers paint a sobering picture: 70% of South Africans die without valid wills, 90% haven't planned for estate winding costs, 55% of estates face cash shortfalls, and only 30% of reported estates have valid wills. Steve brings these statistics to life with personal stories, including discovering his father's will dated from 1971 and spending two and a half years winding up an estate that lacked proper financial planning.

Hollard Estate Solutions addresses these challenges through a fully digital platform accessible via the standard advisor portal. More than just a will generator, it functions as a comprehensive financial fact-finding tool that can be completed by advisors with clients or sent digitally for client completion. The integrated calculator analyzes the data to determine exact estate costs, providing advisors with precise figures for risk cover recommendations.

The platform eliminates cost barriers, Hollard pays for, stores, and couriers wills at no charge to clients. Annual reminders prompt advisors to review and update client situations, preventing the common problem of outdated estate plans. Advisors enjoy flexibility in executor arrangements, able to share 25-40% of executor fees depending on policy holdings, though participation remains entirely optional.

Steve emphasises that this isn't a sales pressure tool, it's about giving advisors the foundation for better financial planning conversations. With the average South African advisor aged 57, the platform's simplicity matters. As Steve puts it, this technology shouldn't be feared; it's designed to give advisors more time with clients and less time drowning in administrative complexity.

Key Points

Market Challenges

• Alarming statistics: 70% of South Africans die without valid wills

• Cost planning gap: 90% haven't planned for estate winding costs

• Cash shortfalls: 55% of estates face liquidity problems

• Validity crisis: Only 30% of reported estates have valid wills

• Time burden: Estate winding typically takes 2-3 years to complete

Platform Features

• Zero cost: Completely free service to clients—Hollard pays for, stores, and couriers wills

• Digital accessibility: Available through standard advisor portal

• Comprehensive tool: Functions as a full financial fact-finding exercise (FNA)

• Client flexibility: Can be completed jointly with advisor or sent digitally to clients

• Integrated calculator: Automatically determines exact estate costs based on client data

• Secure storage: Wills stored safely and accessible for updates

• Annual reminders: System prompts advisors to review client situations yearly

Strategic Rationale

• Beyond price wars: Part of Hollard's strategy to enhance product offerings rather than compete on affordability

• Industry growth: Life risk sector has surpassed pre-COVID production levels

• Advisor support: Designed to make financial advisors' lives easier

• Starting point philosophy: Will creation as the foundation for all financial planning conversations

Executor Arrangements

• Advisor choice: Optional participation—advisors decide their involvement level

• Fee sharing (Hollard clients): Up to 40% of executor fees with existing Hollard policies

• Fee sharing (any insurer): Up to 25% of executor fees with any life policy

• Full service backup: Hollard's expert team handles entire process if advisor chooses not to participate

• No pressure: Explicitly designed not to force policy sales

Educational Gap

• Lack of understanding: Many people don't comprehend tax implications and estate winding complexity

• Disconnected services: Financial advisors often separate from will storage (e.g., wills in banks)

• Outdated documents: Common problem of wills becoming invalid due to life changes

• Discovery issues: Unknown policies and assets frequently emerge during estate winding

Advisor Demographics & Usability

• Average age: South African financial advisors average 57 years old

• Simplicity focus: Designed to be non-intimidating for less tech-savvy users

• Time efficiency: Reduces administrative burden, increases client-facing time

• Process clarity: Reflexive questions guide advisors through building comprehensive client pictures