20 May 2011
Financial services group Discovery Holdings is aiming to take advantage of its unique behavioural economics business model with the launch of Discovery Insure, a new player in South Africa’s R50-billion short-term insurance market.
According to Discovery CEO Adrian Gore, the company has studied the market for a number of years and is optimistic that they can bring structural change to the short-term industry.
“Discovery clients have come to expect compelling product innovation that meets their needs,” Gore said in a statement this week. “We are confident that with Discovery Insure we will encourage consumers to change their behaviour and reap rewards for it.”
Positive behavioural change
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 channelling 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.
Advanced telematics technology
VitalityDrive is an 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 behaviour.
The application of advanced telematics technology ensures that Discovery Insure clients are safer and better protected on South Africa’s roads.
Led by industry veteran Steffen Gilbert, Discovery Insure will offer comprehensive vehicle, personal and household cover.
“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,” said Gilbert. “Innovation has been a hallmark of Discovery’s growth, and we intend to stay true to that ethos with Discovery Insure.”
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