Wrap Text
DSY - Discovery Holdings Limited - Discovery set to revolutionise SA Short-
Term Insurance Market
DISCOVERY HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1999/007789/06)
ISIN: ZAE000022331
Share Code: DSY
DISCOVERY SET TO REVOLUTIONISE SA SHORT-TERM INSURANCE MARKET
- Discovery leverages Vitality, its proven behavioural economics business
model, and creates Discovery Insure, a strong competitor geared to shift the
short-term value insurance landscape
- Discovery Insure to unlock value for consumers in the R50 billion South
African short-term insurance market
- Discovery Insure utilises the science of measuring driving intelligence to
reward good drivers with fuel rewards: clients can get up to 40% of their
monthly fuel spend back
- Discovery now operates in the short-term, health and life insurance, long
term savings and investments, wellness and credit card market.
Discovery Holdings advanced its strategy to leverage its unique business model
and today launched Discovery Insure, a new player in the short-term insurance
market.
Adrian Gore, Chief Executive, Discovery, said: "We are very excited to enter
the short-term insurance market. We have studied this market for a number of
years and are optimistic that we can bring structural change to this market."
"Discovery clients have come to expect compelling product innovation that meet
their needs. We are confident that with Discovery Insure we will encourage
consumers to change their behavior and reap rewards for it."
Discovery Insure sets to achieve three key objectives: to structurally reduce
the cost of insurance through positive behavioural change, to channel
actuarial and risk management savings to significantly reduce the cost of fuel
for clients, and to make the roads safer for families insured by Discovery.
By channeling the actuarial and financial benefits of better driving, along
with the efficient payment mechanism of DiscoveryCard, the BP fuel network and
safer vehicles enabled through Tiger Wheel & Tyre, the VitalityDrive programme
incentivises clients through valuable rewards. The application of advanced
telematics technology ensures that Discovery Insure clients are safer and
better protected on South Africa`s roads.
Discovery Insure is led by industry veteran, Steffen Gilbert.
Gilbert said: "I am delighted to head up a new business within the Discovery
fold that we see improving the level of competitiveness in the market by
rewarding members, not penalising consumers. Innovation has been a hallmark of
Discovery`s growth, and we intend to stay true to that ethos with Discovery
Insure."
Discovery Insure will offer comprehensive vehicle, personal and household
cover.
Rory Byrne, Special Engineering Adviser to Discovery Insure who has led the
design of Formula 1 cars for 30 years says: "a good driver understands their
abilities and the capabilities of their vehicle. Slow drivers are not
necessarily good drivers, and vice versa. Gender does not play any role -
good driving is within anyone`s grasp."
VitalityDrive is Discovery Insure`s incentive-based programme that gives
clients valuable rewards for improving their driving. The programme uses the
DQ-Track, the latest motor vehicle telematics technology, and proprietary
algorithms to develop a scientific measure of driver behavior, the Driver
Quotient, or DQ. A client`s Driver Quotient encapsulates the key measures of
their driver intelligence. VitalityDrive measures the Driver Quotient based on
the number of DQ Points earned.
By activating VitalityDrive, clients get immediate rewards on their BP fuel
spend. Completing a Tiger Wheel & Tyre Annual MultiPoint Check boosts the fuel
rewards. DiscoveryCard holders reap additional rewards. The overall impact is
that clients can get up to 40% of their monthly fuel spend back.
Clients also have access to several features and tools to improve vehicle and
passenger safety - stolen vehicle recovery is included at no additional cost,
DQ-Track integrates with Discovery Health`s emergency response services to
provide an automated emergency response, and the VitalityDrive Vehicle
Protector reduces the risk of vehicle theft by providing immediate alerts and
notifications if the vehicle battery is tampered with or if the vehicle is
moved without going through the normal ignition procedure.
Discovery Insure has goes live with its product on 1 June 2011.
The information in Discovery`s press releases is specifically meant for
journalists and consumers should not use it to make financial decisions.
Detailed information about Discovery`s products is available at
www.discovery.co.za
FD Media & Investor Relations Discovery Holdings
Ravin Maharaj Adrian Gore, CEO
Sue Vey
Chloe Webb
+ 27 (0) 11 214 2400 + 27 (11) 529 2854
Ravin Maharaj +27 (0) 83 447 5158
Sue Vey +27 (0) 71 682 6007
Chloe Webb + 27 (0) 83 305 0144
Discovery information
Discovery is an authorised financial services provider.
Discovery operates in healthcare cover and life insurance markets in South
Africa and the UK, as well as the long-term savings and investment market in
South Africa. During 2010, Discovery entered into an agreement to purchase 20%
of Ping An Health Insurance Company of China, Limited.
Vitality, Discovery`s wellness programme, is the largest provider of
individual and corporate wellness initiatives in South Africa, also operating
in the UK and US. In the US, Discovery offers a stand-alone wellness product
to large corporates and health carriers through The Vitality Group and
recently concluded partnership agreements with Humana and Wellness and
Prevention, a Johnson and Johnson company. The company`s core purpose is to
make people healthier, and to enhance and protect their lives through
financial products that clients need and want.
Local operations
Discovery Health
- Discovery Health is South Africa`s largest healthcare funder and manager of
medical schemes. It covers over 2.5 million lives and manages 14 medical
schemes.
- This includes the Discovery Health Medical Scheme, the country`s largest
open medical scheme and the only one to enjoy an AA+ rating for its claim
paying ability, the highest possible credit rating from international rating
agency, Global Credit Ratings.
- Discovery Health pioneered consumer-driven healthcare in South Africa with
the introduction of innovations like the Medical Savings Account and its
wellness programme, Vitality.
- Discovery Health was voted top medical aid brand in the Sunday Times Top
Brands survey for 2010.
- Discovery Health was voted the top health product supplier at the 2010
Financial Intermediaries` Association Awards.
Discovery Life
- Discovery Life is South Africa`s fastest growing major life assurer in the
risk market, having captured 25% of the overall risk broker market.
- It was the first South African insurer to separate risk from investment,
leading significant change in the industry
- Discovery Life was voted the top life insurance and pension/provident fund
in the 2010 Sunday Times Top Brands survey
- Discovery Life was voted the top risk and life assurance supplier at the
2010 Financial Intermediaries` Association Awards.
Discovery Invest
- Discovery Invest was launched in October 2007 and declared its maiden profit
in 2010
- Discovery Invest combines the breadth and skill of the asset management
industry with the existing research and development capabilities of Discovery
Life.
- The company now offers consumers a unique and comprehensive product range
that addresses the current gaps in the market by offering greater protection
against poor investment choices.
- By December 2010, assets under management were at R14 billion
- Through Discovery Invest`s LISP platform, clients have access to over 170
investment funds.
Discovery Vitality
- Discovery Vitality is a science-based wellness programme that underpins each
of the Discovery businesses and is an international brand in its own right.
- Vitality encourages healthy behaviours that reduce long-term healthcare
costs by rewarding members for improving their health.
- It is accredited by the Sports Science Institute of South Africa and more
than 1.5 million people currently belong to Vitality.
- Vitality is available to Discovery Life and Discovery Health members,
clients of PruHealth and PruProtect.
- In February 2009, the HealthyFood Benefit was launched. This benefit saves
members up to 25% on a wide range of HealthyFoods they buy at Pick n Pay. To
date, more than 228 000 members have activated the HealthyFood benefit.
- Vitality`s value offering is further enhanced by the DiscoveryCard that
gives members real cash back.
International operations
In the UK, Discovery has a 75% shareholding in the joint venture with
Prudential plc. Through PruHealth and PruProtect, the company offers
healthcare cover and protection products.
PruHealth
- PruHealth was launched into the UK market in October 2004 as a joint venture
between Discovery and UK insurer, Prudential, in response to a growing need
for consumer-directed private medical insurance products.
- In 2010, Discovery acquired Standard Life Healthcare, thereby leveraging the
significant assets of both companies, resulting in greater scale for
PruHealth. The combined company now covers 674 506 lives.
- PruHealth received several industry awards, including the Most Trusted PMI
Provider at the 2009 Moneywise Awards, the Best PMI Provider at the 2009
Moneyfacts Awards and the award for the Best Use of Marketing to
Intermediaries for 2009 at the Health Insurance Awards.
PruProtect
- PruProtect`s strategy mirrors that of Discovery Life, as it is based on the
Vitality structure and enables dynamic pricing to be employed in the UK life
assurance market. Built into this strategy is the expectation that premium
levels will be competitive and risk-selection will be improved.
- The number of policies exceed 55 000
- PruProtect has achieved industry recognition: it was awarded the Defacto
Best Critical Illness and Income Protection product for 2010 and as the Best
Individual Protection Provider in 2011 by Professional Adviser
Ping An Health
- Discovery announced an agreement to buy a 20% stake in Ping An Health in
2009.
- he joint venture will see Discovery`s product innovation and consumer-
engaged model exported to a potential market of 83 million families
Sandton
19 May 2011
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 19/05/2011 11:42:02 Supplied by www.sharenet.co.za
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