The digitisation of the insurance industry has began with the launch of the first digital-first insurance company
IVALIFE Insurance Limited is a new digital first, technology-driven life insurance company forging its own unique path within the life insurance sector, providing a range of smart life insurance products tailored to both individual and group needs. Conceived by four respected players operating mainly in the financial services industry, namely APS Bank p.l.c., Atlas Insurance PCC Ltd., GasanMamo Insurance Ltd. and MaltaPost p.l.c., who, together identified a gap in the market for a digitally led, multi-channel approach to life insurance.
Marcel Cassar
Chief Executive Officer of APS Bank plc
How will IVALIFE benefit from the vast experience accumulated by your organisation within the financial services sector?
APS Bank is one of the main lending banks in Malta and particularly active in the home loan market. With life protection being an element of collateral typically required by banks for home finance and certain other lending, we offer life insurance as a ‘by-product’ to our customers. In fact, we have enjoyed an excellent relationship as a Tied Insurance Intermediary (TII) of Mapfre MSV for many years while also accepting the policies of other life companies. We believe we have a good understanding of the market accumulated over many years of experience and with thousands of satisfied customers.
Savings and protection – have these elements achieved greater consideration during these trying times?
We have seen a lot of liquidity flowing into the financial system over the past year, and published statistics confirm an increase in household bank deposits, particularly of a short-term nature. This is not just a local phenomenon, savings ratios spiked across Europe, although the ratio for Malta (27 per cent) remained higher than the European average (24 per cent). Several factors may explain this behaviour, not least the low interest rate environment, investment uncertainty that characterised recent history and reduced consumption opportunities. But they also indicate a tendency of Maltese households to save and stay liquid in ambiguous times.
Do you think the onset of the pandemic and the economic fallout will be reflected in an increased market demand for savings products?
It’s difficult to say because it all depends on how long and widespread the fallout will be. As economic activity starts a return to ‘normality’, which might not be any time soon, one should expect households and businesses to resume consumption patterns and investment activity, not to mention loan repayments once moratoria expire. Another factor to be taken into consideration is the surge in property sales driven particularly by the Government fiscal incentives. In large part, these are being financed by bank loans which will bring commitments for years to come. So, there are many variables in play.
How does an investment with IVALIFE differ to investing with a bank?
IVALIFE is offering two main savings plans: IVAsave, our With-Profits Regular Premium Plan and IVAinvest, our With-Profits Single Premium Plan. Both products participate in the IVALIFE With-Profits Fund. Unlike a bank deposit, the premia paid into these savings plans buy into units of the life insurance With-Profits Fund and the benefits are paid either on maturity, death or surrender, partial or full. One can say that investing in a bank deposit is simpler and more straightforward but then we are talking of different product characteristics catering for different investment objectives.
Michael Gatt
Board director, Atlas Insurance PCC Limited
How will IVALIFE benefit from the vast experience accumulated by your organisation in the financial services sector?
Atlas and its predecessor companies have always played a leading role in the non-life insurance market, consequently we will now be in a position via our subsidiary company, Atlas Healthcare Insurance Agency Ltd, to also offer IVALIFE products in particular Group Life cover for employees as well as other life products, in addition to the traditional Health plans we have been providing our clients who have long been purchasing from the Atlas Group companies.
How was the concept of IVALIFE conceived? What brought these four leading businesses together to create this new product?
Atlas, and I’m sure other local non-life insurers, have for some time debated expanding into life insurance however for some time now composite insurance companies, that is companies providing both life and non-life insurance were prohibited by regulation so basically the only choice was to set up a completely separate standalone life insurance company. With our knowledge of the insurance market, we immediately recognised that it would be very challenging to say the least to try penetrating the life market single handed, so we chose to take this forward with our partners who were all of like mind in that IVALIFE strategically is the best way forward for all four.
What is driving growth in the insurance sector today? Was there an opportunity in the market for a new life insurance product?
The driving growth has for some time been the mortgage driven life policies and other commercial bank loans and single premium policies. Going forward we are expecting to see more private pension products coming into play more so that fiscal benefits are slowly being introduced by Government and no doubt will increase in time to enable individuals supplement their capped government pension.
I feel there is a need and space for a new life insurer such as the one structured by IVALIFE. There are only four life insurers licensed to write Maltese risks, two of whom have a combined market share exceeding 90 per cent. I’m confident we are creating more choice and quality for consumers and insurance brokers alike.
As a digital-first service provider, how will IVALIFE make it easier for consumers to invest in their protection?
This is a first for a life insurance company in Malta. Clients may from the comfort of their homes get an online quote for their protection need. The customer may then follow a step-by-step process to complete the proposal which subject to a few underwriting questions allow for the issuance of the policy. This can then be accessed through the customer portal.
There is already a demand for this especially among the millennials and the need for digitalisation will grow in numbers as already unexpectedly experienced by most in the current COVID-19 environment.
Julian Mamo
Managing Director GasanMamo Insurance
How will IVALIFE benefit from the vast experience accumulated by your organisation in the financial services sector?
IVALIFE is of course, a ‘standalone’ legal entity and operates as such. As a shareholding block and as a director, I’m very familiar with what is required to run a successful insurance company, grasp opportunities and avoid pitfalls. Working in a regulated environment is second nature, we take the long view, building solid foundation, taking a sure and steady path for growth. The idea was to bring together top-flight partners and benefit from the synergies and experience that all bring to the table.
How was the concept of IVALIFE conceived? What brought these four leading businesses together to create this new product?
As a company we have been looking at the life insurance space for many years. The idea of doing this in partnership with like-minded people presented many advantages. The idea of bringing our capital, knowledge and experience to this venture was captivating. We are confident we will carve out an interesting share of the market and be at the fore of innovation for the benefit of all stakeholders.
As a digital-first service provider, how will IVALIFE make it easier for consumers to invest in their protection?
The customer sits at the heart of IVALIFE and we are well aware that Life insurance can be challenging from a customer experience standpoint. It is our mission to facilitate and simplify that process. The present, not to mention the future is the digital age, and customers expect quick efficient processes, as much as possible doing away with old methods of transacting. IVALIFE has the incredible advantage of designing processes from ground up without the legacy headache.
This we have done to the full and the end result is really exciting. I am sure it will be well received and appreciated.
What is driving growth in the insurance sector today? Was there an opportunity in the market for a new life insurance product?
Financial security is increasingly seen as fundamental for both individuals and families today. Providing for your loved ones after you pass away is part of planning for that financial security. The Products provided by IVALIFE cover range of Life insurance products that is sure to meet the needs of those seeking Life Insurance cover. The Life insurance market in Malta has been very stable for a good number of years. I believe that that leads to a sense of complacency and I see IVALIFE as an opportunity to bring a fresh perspective to the market. I am certain that this will be well received.
Joseph Said
Chairman of MaltaPost plc
How will IVALIFE benefit from the vast experience accumulated by your organisation?
The post office, probably one of the oldest established and well-structured entities on the island, has been for many years, at the centre of the Maltese social fabric, enjoying the confidence of the community at large.
MaltaPost is a trusted brand, and though admittedly the business of insurance is new to MaltaPost, we believe the basic tenets of trust and reliability apply to any activity.
Consequently virtually every citizen is a potential MaltaPost customer whether for postal services, the payment of bills, document management services as well as the operation of a payment account in terms of EU directives.
The addition of insurance services at MaltaPost seems to be a natural consequence of the galloping digital evolution which is resulting in the exponential contraction of traditional letter mail volumes.
What will MTP’s main contribution be towards IVALIFE’s growth trajectory?
Our contribution does not only rest with our very recognisable and trusted brand but also with our robust network of outlets which are spread throughout the Maltese Islands, mostly in the core of communities.
MaltaPost will continue to invest in its branch network as well as in staff training and development. This strategy stands to benefit the community not least that segment which still prefers a personalised service rather than struggling to build some form of a relationship with a voice synthesizer. Having said that, we continue to invest in technology as necessary, though without losing the personalised element to our services.
Forging a unique path within the life insurance sector
Does this latest investment and move towards insurance products form part of an overall diversification strategy for MTP?
Over the years MaltaPost has publicly stated its strategic intent of diversifying into other services, including, among others, the provision of financial services, of which insurance products is one such service.
We have already successfully implemented a good part of this plan and our investment in IVALIFE represents another important milestone in this direction.
Do you think the onset of the pandemic and the economic fallout will be reflected in an increased market demand for insurance products?
An increased awareness of the vital importance of risk management both on the personal, as well as the corporate fronts, should follow quite naturally as a result of the consequences of the Covid-19 pandemic.
It is fair to assume that this will spur the public to better appreciate the need for and benefits of insurance in its widest sense.