SlideShare a Scribd company logo
1 of 61
Download to read offline
Discovery Insure 2012 Product update
Francois Theron | COO Discovery Insure
Discovery
Background to the launch of Discovery Insure


                          1                                             2                                                                         3
      Mainstream emergence of                 The relevance of Discovery’s                          Rising and volatile fuel price
      telematics technology as a                behavioural economics                               negatively impacting cost of
        premium rating factor                  experience to short-term                                  vehicle ownership
                                                       insurance
                                                                                               Fuel price                                                                               Oil price
                                                      Causes of motor vehicle accidents
                                                                                             R 12                                                                                                   160


                                                                                                                                                                                                    140
                                                                                             R 10
                                                Road                         Inappropriate                                                                                                          120
                Cornering                       conditions                         driving    R8
                                                                                                                                                                                                    100

                                                                   8%                         R6                                                                                                    80


                                                                                                                                                                                                    60
                                                                                              R4

Braking                       Acceleration                   34%            49%                                                                                                                     40

                                                                                              R2
                                                                                                                                                                                                    20


                                                                                              R0                                                                                                    0
                                                                                                2001   2002   2003     2004      2005      2006   2007     2008      2009      2010   2011   2012
                                                                   9%
                                                Pedestrian                        Vehicle                            Actual f uel price (Rands)       Actual oil price (US dollars)
              Cornering
                                                related                            safety




  Understand and reward good                 Ability to positively impact road                      Mechanism to incentivise
       driver behaviour                                    safety                                   positive behavioral change
The Discovery Insure Product Platform




                      State-of-the-art vehicle
                       and passenger safety       ImpactAlert™:     Stolen vehicle    Vehicle Protector™: Family Protector™:
                                                    Pro-active      recovery at no     Tools to improve    Additional family
                                                    emergency       additional cost     vehicle safety      safety features
                                                     response



                                                 Comprehensive motor insurance




    Fuel rewards
    Get 50% of fuel
    spend back each
    month,
    Or
    100% of fuel
    spend to fund
                                                                                                                                Flexible
    policy excess                          The better you drive,
                                                                                                                               options for
                                          the higher your status,
                                             the greater your                                                                  household
                                                                        Driver Quotient™
                                                 rewards                measures driver
                                                                                                                                  and        No excess on    HomeProtector™:
                                                                                                                                               burglary,        Security and
                                                                          performance                                           personal       hijacking,        emergency
                                                                                                                                 cover       storm or fire    accommodation




                                                                                                                                                                               4
Discovery Insure: The year in review



             Press coverage            Key metrics



                                                     311 100
                                                   fuel transactions
                                                   7.7m ℓitres
                                               of fuel purchased at BP



                                                20 100 drivers
                                          tracked in real time with DQ-Track
                                                    R3.25 bn
                                          vehicles comprehensively insured
                                        132 million kilometres
                                                  of behavioural data




                                                     R7.93 bn
                                                   comprehensively
                                                insured household and
                                                    personal cover
The Discovery Insure business cycle




                                    Experience
                                      review




                       Marketing
                       and client             Product
                        support            enhancements
The Discovery Insure business cycle




                                    Experience
                                      review




                       Marketing
                       and client             Product
                        support            enhancements
Vitalitydrive
        is having a
1   tangible impact
    on client behaviour
Behaviour change manifests in three key areas



    High engagement in driver
                                                             Substantial shift in day-to-day               Demonstrable changes in driver
   awareness and vehicle safety
                                                                  consumer choices                                  behaviour
            activities
Tiger Wheel and Tyre MultiPoint checks                            BP market share analysis                  Indexed Driver Performance Scores
                                                                                                                     (Month 1 = 100)

8000                                                                                                      118

7000                                                                                     77%              116

                                                                                                          114
6000
                                                                                                          112
5000
                                                                                                          110
4000
                                                                                                          108
3000
                                                                                                          106
2000
                                                                                                          104
                                                                   20%
1000                                                                                                      102

   0                                                                                                      100
       Jun-11




                         Oct-11
                Aug-11




                                           Feb-12

                                                    Apr-12
                                  Dec-11




                                                             BP National market
                                                                 BP national      Proportion of petrol          Month Month Month Month Month
                                                                    share
                                                                market share        spend at BP for               1     2     3     4     5
                                                                                  Vitalitydrive clients
                                                                                  VitalityDrive clients


   Over 7 000 MultiPoint checks                                                                                    17% improvement in
                                                             77% of fuel spend at BP outlets
            completed                                                                                           Driver Performance Scores
Improvements
      in driver behaviour are directly
                correlated with
2
    fewer motor vehicle accidents
                    and
                lower       insurance costs
Driver behaviour is directly correlated with accident risk


                     Indexed loss ratios by Vitalitydrive status
                                    (Base = 100%)


100%
            100%
90%

80%

70%                             74%
60%

50%                                                  54%
40%

30%
                                                                    31%
20%

10%

 0%
             Base              Neutral              Engaged        Advanced
DQ-Track
    facilitates a robust
3                understanding
         of the underlying causes of
            motor vehicle accidents
South Africa’s roads are amongst the most dangerous
      in the world


                                                                 Road fatalities per capita
                                                               (per 100 000 inhabitants p.a.)

                   UK                       3.59

                 India                                               11.1

                 USA                                                    12.3

               China                                                             16.5

              Russia                                                                    18.5

                Brazil                                                                     19.9

      South Africa                                                                                              33.2


                         South Africa’s fatality rate is significantly higher than other BRIC countries, with
                             Broader societal costs associatedfatalities per year are substantial
                                                    14 000 road with road accidents

Source: List of OECD countries by traffic-related death rate
Unique insights into the causes of motor vehicle accidents



  Drivers displaying risky driving behaviour 15        Type of risky behaviour displayed prior to an
   minutes or less prior to a serious accident                           accident


  No                                                53%
 39%


                                                                    37%
                                                                                    32%




                                                                                                    16%


                                                                                                                     5%


                                 Yes              Late night       Braking        Speeding      Accelerating      Cornering
                                 61%               driving
                                                  Note: Drivers can have more than one type of risky event prior to an accident
Measureable behaviours are directly correlated with
accident risk

                        Relative accident risk, 2011 Insure data



                                                                      9.7
                                                                      9.7




                1.3               1.4
                                  1.4              0.8
                                                   0.8


              Morning         Lunch time      Early evening        Late night



  There is a ten times higher likelihood of having a motor vehicle accident at night
Strong correlations
          are emerging between
4   driving behaviour
       and other drivers of insurance risk
Cross-company analytics provide unique insights into the drivers of
insurance risk



    Case study 1: Wellness outcomes are directly                                       Case study 2: Credit risk is directly
          correlated with driving behaviour                                            correlated with driving behaviour

 Percentage of healthy* drivers by Vitalitydrive status                            Credit default rates by Vitalitydrive status

                                                                                   10%
                                                                                   10%
                                                                          82%
                                                                                                          8%
                                                      67%



                               48%

        37%
                                                                                                                                 4%




                                                                                                                                                         1%


       Base                 Neutral               Engaged               Advanced   Base                Neutral               Engaged                Advanced

*Note: Healthy is defined as being on Gold or Diamond Vitality status               P(Credit default) is the probability of being 3 months in arrears or worse at
                                                                                    least once during a year
The core product
    is providing
5              high coverage
             levels to clients
Discovery Insure claim payments reflect comprehensive product
offering




     Discovery Insure claims payout ratios                  Analysis of repudiated claims



                                                     Other                                  No cover
                      Repudiated                       9%                                   44%
                             2%



                                             Unlicensed
                                               driver
                                                 9%




                                             Pre-existing
                                               damage
              Approved                           16%                                        Fraud
                   98%                                                                      22%
The Discovery Insure business cycle

                    Young adults display high risk
                              driving behaviours                              Unique client data provides strong
         Vitalitydrive engagement                                             predictor of insurance risk
               lowers accident risk                                                 98% benefit coverage ratios
                                                     2       3        4
      Rewards change
      client behaviour
                                        1                                 5
                                                         Experience
                                                           review




                                    Marketing
                                    and client                      Product
                                     support                     enhancements
2012 Strategic product objectives




 1     Restructure Vitalitydrive to simplify and enhance the benefits




       Create targeted incentives to drive a step change in
 2     road safety for young adult drivers




 3     Enhance coverage levels across the product
2012 Strategic product objectives




 1     Restructure Vitalitydrive to simplify and enhance the benefits




       Create targeted incentives to drive a step change in
 2     road safety for young adult drivers




 3     Enhance coverage levels across the product
Increasing relevance of the fuel benefit construct


                       Fuel price progression since the launch of Discovery Insure
                                                                                                              (Rand per litre)                                                                                                                                          R11.67
                                                                                                                                        Discovery Insure launch
R 12.60
R 12.20                                                                                                                                                   R10.23
R 11.80
R 11.40
R 11.00
R 10.60                                        R8.45
R 10.20
 R 9.80
 R 9.40
 R 9.00
 R 8.60
 R 8.20
 R 7.80
 R 7.40
 R 7.00
                                                                                                    Nov-10




                                                                                                                                                                                                                Nov-11
          Jan-10


                            Mar-10




                                                                                  Sep-10




                                                                                                                      Jan-11


                                                                                                                                        Mar-11




                                                                                                                                                                                              Sep-11




                                                                                                                                                                                                                                  Jan-12


                                                                                                                                                                                                                                                    Mar-12
                                                                                                                                                          May-11
                   Feb-10



                                              May-10




                                                                                                                               Feb-11




                                                                                                                                                                                                                                           Feb-12



                                                                                                                                                                                                                                                                      May-12
                                                                                                                                                 Apr-11
                                     Apr-10


                                                       Jun-10




                                                                                                                                                                   Jun-11




                                                                                                                                                                                                                                                             Apr-12


                                                                                                                                                                                                                                                                               Jun-12
                                                                Jul-10
                                                                         Aug-10




                                                                                                             Dec-10




                                                                                                                                                                            Jul-11
                                                                                                                                                                                     Aug-11




                                                                                                                                                                                                                         Dec-11
                                                                                           Oct-10




                                                                                                                                                                                                       Oct-11

                                                                                                                                                                                                                 Gauteng Prices (Pricing Zone 9C), 95-Octane unleaded
Analysing the different rewards structures available through
Vitalitydrive




    Composition of Vitalitydrive rewards       Composition of Vitalitydrive fuel rewards


                               Travel                                      Rewards at
  DiscoveryCard                                                            other stations
                               3%                                          4%
       22%




                                                                                Rewards at
                                   Fuel                                         BP stations
                                   75%                                          96%
Factors informing the restructure of Vitalitydrive rewards



                                               01
          75%
                   75% of Vitalitydrive                  Boost BP fuel cash
                   rewards in fuel
                                                               back
          96%      96% of all fuel
                   rewards earned at
                   BP

          1 in 3   More than 1 in 3
                   Insure clients do not
                   have a DiscoveryCard

                   Excess Funder Account
 R4m               balances

          20%
            +
                   Experience on
                   supported policies

  Risk-            Registrar guidelines to
  based            remove ‘non-risk’
 reward
                   travel and card rewards
Clients can now get up to 50% of their BP fuel spend back



                                                                                       INSURE YOUR CAR AND HOME AND ACTIVATE




                                                                                                                  You get
                               20%
                                                                                                               50%
                                                                                                               Cash back on
                                                                                                               your BP fuel
                                                                                                               spend every
                                                                                                                  month




      You automatically get     20%                    Complete and pass the Tiger
      cash back on your monthly BP                    Wheel & Tyre Annual MultiPoint         Boost your Excess Funder
               fuel spend                                         check                      Account and double your fuel
                                                                                             rewards to
                                                                                                             100%

Note: Your monthly fuel rewards are based on your number of DQ Points earned
Factors informing the restructure of Vitalitydrive rewards



                                               01
          75%
                   75% of Vitalitydrive                  Boost BP fuel cash
                   rewards in fuel
                                                               back
          96%      96% of all fuel
                   rewards earned at
                   BP

          1 in 3   More than 1 in 3
                                                 02
                   Insure clients do not               Ensure maximum level
                   have a DiscoveryCard                   of fuel reward is
                                                        available to all clients
                   Excess Funder Account
 R4m               balances

          20%
            +
                   Experience on
                   supported policies

  Risk-            Registrar guidelines to
  based            remove ‘non-risk’
 reward
                   travel and card rewards
The revised fuel rewards structure ensures that the maximum
level of fuel rewards are available to all clients



      2011 BP fuel rewards structure            2012 BP fuel rewards structure



    Payment                     MultiPoint                               MultiPoint
                    Automatic                Policy type     Automatic
    mechanism                    check                                    check



    Other            10%          25%        Car only          10%         25%



    DiscoveryCard    15%          40%        Car and home      20%         50%
Factors informing the restructure of Vitalitydrive rewards



                                               01
          75%
                   75% of Vitalitydrive                  Boost BP fuel cash
                   rewards in fuel
                                                               back
          96%      96% of all fuel
                   rewards earned at
                   BP

          1 in 3   More than 1 in 3
                                                 02
                   Insure clients do not               Ensure maximum level
                   have a DiscoveryCard                   of fuel reward is
                                                        available to all clients
                   Excess Funder Account
 R4m               balances

          20%
            +
                   Experience on
                   supported policies          03
                                                          Embed an Excess
  Risk-            Registrar guidelines to              Funder Account in all
  based            remove ‘non-risk’
 reward                                                 Vitalitydrive policies
                   travel and card rewards
Vitalitydrive members automatically get up to 10% of their
premiums paid into their EFA each month


Percentage of car insurance premium paid into the Excess Funder Account every month




                                                              10%
                                                             Advanced

                                       5%
                                      Engaged
                   2.5%
                   Neutral
     0%

    Base

                                                status
The Excess Funder Account Booster in action


      Excess Funder Account balance for a client on Advanced status with a motor premium
                      of R750 per month and R400 monthly fuel rewards

                            R19,200           R28,800             R38,400     R48,000




           R9,600
                                                                                           Excess Funder
                                                                                           Account
                                                                                           Booster



  Plan
                                                                               R 4 500
 excess                                                           R 3 600                  Embedded
                                                                                           Excess Funder
                                               R 2 700                                     Account
                             R 1 800
            R 900
          End Year 1
               1           End Year 2
                                2            End Year 3
                                                  3              End Year 4
                                                                      4       End Year 5
                                                                                  5

                                        Access 50% of the fund
                                           after three years

                    Opportunity for clients to build real long term insurance equity
Factors informing the restructure of Vitalitydrive rewards



                                               01
          75%
                   75% of Vitalitydrive                            Boost BP fuel
                   rewards in fuel                                  cash back
          96%      96% of all fuel
                   rewards earned at
                   BP

          1 in 3   More than 1 in 3
                                                 02
                   Insure clients do not               Maximum fuel rewards
                   have a DiscoveryCard               available to all clients with
                                                          supported policies
                   Excess Funder Account
 R4m               balances

          20%
            +
                   Experience on
                   supported policies         03            10%
                                                       Excess
                                                      Funder      Embedded Excess
  Risk-            Registrar guidelines to            Account
  based            remove ‘non-risk’
                                                                   Funder Account
 reward
                   travel and card rewards
2012 Strategic product objectives


                                                           50%
       Restructure Vitalitydrive to simplify and enhance          Excess
 1     the benefits
                                                                 Funder
                                                                 Account




       Create targeted incentives to drive a step change
 2     in road safety for young adult drivers




 3     Enhance coverage levels across the product
Young adults account for a disproportionately high frequency of
motor vehicle accidents and accident related deaths



                                                    Motor vehicle accidents account for 75% of
    Over 90% of young adults drive late at night
                                                               young adult deaths

         Proportion of young adults driving late       Proportion of young adult deaths by cause
                 at night, 2012 survey

                             Drive during the day
                                                                          Natural
                             8%
                                                                          25%




                                                    Motor vehicle accidents
             Drive late at night                                       75%
                            92%
The Discovery Insure Young Adult plan




                        Up to 50% of
                      their BP fuel spend        25% of car
                         back in cash
                                              premiums into the
                                                 Young Adult
                                                Rewards Fund




   MONTHLY
   BOOSTER   • Up to R200 per month
                paid into Rewards Fund
             based on Vitalitydrive status
                                               NightDriver gives
                                               discounted home drive
              • Reduced by R10 per km        services and preserves the
              driven between 23:00 and         Rewards Fund balance
                        04:30
The Young Adult plan in action



                       01     25% of car premiums into
                              Young Adult Rewards                  02              Regular feedback to
                              Fund                                                 improve your driving


                                                                                     03    Boost your Fund by
                                                                                           driving well                     Drive Well
                                                                                                                     Base           - R 200
                                                                                                                     Neutral              R0
                                                                                                                     Engaged             R 50
                                                                                                                     Advanced        R 200




04                                  or               NightDriver gives you
                                                     access to RoadTrip or
                                                     SmartGuyz at a
       For every kilometre
                                                     substantial discount
       you drive between
       23:00 and 04:30, R10
       is deducted from the
       Fund              23:00
                                                                                                                05          Every six months,
                                                                                                                            you can withdraw
                                                                                                                            the available
                                             04:30                                                                          money in the Fund


Note: Extensive night driving will result in a premium increase after six months
Young adults can earn unprecedented rewards with Discovery Insure


                                                    Dan gains R1 200 from his fuel benefits
   Dan gains R2 670 overall from the Young
          Adult plan over 6 months                         Cumulative fuel rewards
                                                 R 1 200
                                                 R 1 000
    Profile                                       R 800
    • Name: Dan                                   R 600
    • Age: 22                                     R 400
                                                  R 200
    Driving experience over 6 month period
                                                    R0
    • Fuel spend: R 800 per month                           1        2       3       4      5       6
    • Car premium: R 680 per month
      (no home insurance)                    +
    • Driver status:                                                    Month
                                                    Dan gains R1 470 from his Rewards Fund
        • Engaged for 2 months
        • Advanced for 4 months                            Rewards fund after 6 months
    • Night driving: 45 kms                      R 2 000

                                                 R 1 500

                                                 R 1 000

                                                   R 500

                                                     R0
                                                             25% of Vitality status Night time   Cumulative
                                                            premiums   booster       driving       value
2012 Strategic product objectives


                                                              50%
       Restructure Vitalitydrive to simplify and enhance             Excess
 1     the benefits
                                                                    Funder
                                                                    Account




                                                                    25%
       Create targeted incentives to drive a step change in
 2     road safety for young adult drivers




 3     Enhance coverage levels across the product
Cover enhancements effective 1 August 2012


     Enhancements to cover,        Improved cover for accidental      Broader range of cover for
 removed restrictions on use of     damage, goods in open and             unspecified items
   car and extended territorial   cover for goods away from home
              limits




Enhancements to liability cover    Liability cover introduced for   Caravan contents included in all
      and offroad use                  sailboats and jet skis                 risk cover
Marketing support: Plan Guide
2012 Strategic product objectives


                                                              50%         10%
       Restructure Vitalitydrive to simplify and enhance             Excess
 1     the benefits
                                                                    Funder
                                                                    Account




                                                                    25%
       Create targeted incentives to drive a step change in
 2     road safety for young adult drivers




 3     Enhance coverage levels across the product
The Discovery Insure business cycle

                    Young adults display high risk
                              driving behaviours                              Unique client data provides strong
         Vitalitydrive engagement                                             predictor of insurance risk
               lowers accident risk                                                 98% benefit coverage ratios
                                                     2       3        4
      Rewards change
      client behaviour
                                        1                                 5
                                                         Experience
                                                           review

                                                                                               50%

                                                                                                          Up to 50% of BP
                                                                                                          fuel spend back

                                    Marketing                                                10%


                                    and client                      Product           Excess
                                                                                     Funder
                                                                                                         Up to 10% of
                                                                                     Account
                                     support                     enhancements                            premium paid into
                                                                                                         your Excess Funder
                                                                                   25%                   Account
                                                                                                     Up to 25% of car
                                                                                                     premium paid into Young
                                                                                                     Adult Rewards Fund
                                                                                         Benefit enhancements in
                                                                                         each area of cover
2012 Marketing and client support



       Leverage our breadth of data and analytic
 1     capabilities to improve premium efficiency for
       Select clients


       Focus on areas to enhance the service experience
 2     for clients and advisers




 3     Digitalise the advice and new business process
“Big data” can be used to generate significant financial value




                                                         Global personal
                    US health care
                                                          location data


                                               • >$100 billion revenue for service
       • $300 billion value per year               providers
       • ~0.7% annual productivity growth      •   Up to $700 billion value to end
                                                   users




                         US retail                        Manufacturing



       • >60% increase in net margin           • Up to 50% decrease in product
                                                   development, assembly costs
           possible
       •   0.5–1% annual productivity growth
                                               •   Up to 7% reduction in working
                                                   capital


Source: McKinsey Global Institute analysis
Discovery Insure is uniquely positioned to understand
insurance risk




                    VEHICLE
                     CHECK
Select client pricing model




          Select clients
    automatically qualify for
        a 5% discount in
            premium




    Save

   5%
on premiums
Select client qualifying criteria


     Wellness engagement                               Socio-economic factors

 1                                                 2

  Vitality status: Silver, Gold or Diamond             DiscoveryCard: Gold        Discovery Life plan of
                                                           or Platinum             R3 million or more
                                                                             OR
                               Silver        AND
                               Gold

                             Diamond




               100 000 clients automatically qualify for 5% premium discount
Select client pricing model




          Select clients                           Dynamic behavioural
                                                                                     Select clients can save as
    automatically qualify for                     algorithm assesses risk
                                                                                      much as 25% on their
        a 5% discount in                          profiles across multiple
                                                                                             premiums
            premium                                       variables




                            Discovery Vitality             Wellness choices

    Save                                                                                        Save up to
                                                           Credit risk profile and

   5%                           DiscoveryCard              retail behaviour
                                                                                                25%
on premiums                                                Benefit choices and                on premiums
                                 Discovery Life            risk attitudes



                                Discovery Invest           Risk attitudes



                        Automatically applied during quoting process
The impact of being a Discovery Insure Select client


     Case study: Select client; R1 000 pm BP fuel spend; 1000 DQ Points;                   ADVANCED
     Car insurance premium: R1500



R 2,500


R 2,000                                                                      Net
                 R 2,000
                 R2,000                R500
                                       R 500
                                                                R1 150       saving
R 1,500
                                                       R 300
                                                       R500
                                                                      R150
R 1,000                                                                                   R 1,125

                                                                                           R850
 R 500


    R0
          Discovery Insure premium Select discount   Fuel rewards   Excess Funder     Effective premium
2012 Marketing and client support



       Leverage our breadth of data and analytic          Save up to
 1     capabilities to improve premium efficiency for     25%
                                                          on premiums
       Select clients


       Focus on areas to enhance the service experience
 2     for clients and advisers




 3     Digitalise the advice and new business process
SmartService is providing Insure clients with a unique
service experience


                       New business
                       • Over 16 000 plans already activated
                       • 84% of new business applications are finalised within 4 hours
                       • 96% of underwriting is completed within 4 hours




                       DQ-Track installations
                       • Over 20 000 installations completed by our experienced technicians
                       • Focus on client experience: currently rated at 9 out of 10
                       • Continue to see a positive trend



                       Rewards
                       • Over R8 million paid out in Vitalitydrive rewards
                       • Over R4 million held in Excess Funder Account balances
                       Benefits and services
                       • Over R60 million paid out in claims
                       • 76% of stolen vehicles recovered by DQ-Track
FastTrack service from SmartClaims


  FastTrack approved items will be replaced within 24 hours in Gauteng or
                48 hours in other large metropolitan areas



     Laptops             GPS devices            E-readers                Tablets




   Smartphones            Cameras              MP3 player             FastTrack Claims
                                                                      Promise
                                                                  If we fail to deliver on
                                                                  our promise, we will
                                                                  waive the excess on
                                                                  your claim
NightDriver from Discovery Insure


        NightDriver– providing Vitalitydrive members access to a
        network of accredited home drive services



                                                       Use SmartGuyz services without a
     Subscribe to RoadTrip or SmartGuyz
                                                                subscription

    • Subscribe and receive a                        • Contact SmartGuyz and pay a flat
      discounted monthly fee based on                  fee of R100 – first 10km included
      Vitalitydrive status
                                                     • Normal tariffs apply thereafter
    • Allocated number of kilometres
      per month - charged thereafter         OR
                                                     • No registration necessary –
                                                       SmartGuyz will verify Vitalitydrive
    • Discounts up to 25% based on                     membership
      Vitalitydrive status




                 NightDriver is available in the larger metropolitan areas
2012 Marketing and client support



       Leverage our breadth of data and analytic          Save up to
 1     capabilities to improve premium efficiency for     25%
                                                          on premiums
       Select clients


       Focus on areas to enhance the service experience
 2     for clients and advisers




 3     Digitalise the advice and new business process
The Discovery Insure product platform generates
unprecedented value for clients

  The case study of Dave, his wife Linda, and his son Dan illustrates the key benefits

                                                    Home insurance
          Dave’s car                                 R530 premium
       R1 300 premium
      R1 000 Fuel spend
      800 DQ Points for
          six months




                                                                          Dan’s car
                                 Linda’s car                            R680 premium;
                               R750 premium                            Young Adult plan;
                             R1 000 Fuel spend                        R1 000 Fuel spend;
                             1000 DQ Points for                   800 DQ Points two months;
                                 six months                      1000 DQ Points four months;
                                                                   45km of nighttime driving



                 Dave’s total insurance premium: R 3 407 per month
The Discovery Insure and Vitalitydrive product platform generates
unprecedented value for Dave and his family


               Premium compared to cumulative rewards in 6 months


                                                                       of Dave’s premiums paid
                                                        47%            out in cash rewards




             R 20 442                                                                            10%
                                                               25%
                                                                           R 16 400       Excess
                                                                                         Funder
                                                                                         Account
                                          R 8 200

                                                                             R 840
                                          R 1 470

             Premium                  Cash rewards              Excess Funder Account



                 Young Adult      Cash fuel          Embedded Excess
                 Rewards Fund     rewards            Funder Account
The Discovery Insure and Vitalitydrive product platform generates
unprecedented value for Dave and his family


               Premium compared to cumulative rewards in 6 months
                                                                                of Dave’s premiums
                                                                        84%     paid into his Excess
                                                                                Funder Account
                                                    100%
                                                    BOOSTER




             R 20 442
                                                                        R 16 400

                                          R 8 200


                                          R 1 470

             Premium                  Cash rewards               Excess Funder Account



                 Young Adult      Cash fuel           Embedded Excess      Excess Funder
                 Rewards Fund     rewards             Funder Account       Account Booster
SmartQuote from Discovery Insure
2012 Marketing and client support


                                                          Save up to
       Leverage our breadth of data and analytic
 1     capabilities to improve premium efficiency for
                                                          25%
                                                          on premiums


       Select clients


       Focus on areas to enhance the service experience
 2     for clients and advisers




 3     Digitalise the advice and new business process
The Discovery Insure business cycle

                           Young adults display high risk
                                     driving behaviours                              Unique client data provides strong
                Vitalitydrive engagement                                             predictor of insurance risk
                      lowers accident risk                                                 98% benefit coverage ratios
                                                            2       3        4
            Rewards change
            client behaviour
                                                1                                5
                                                                Experience
                                                                  review

                                                                                                      50%

                                                                                                                 Up to 50% of BP
    Digital advice             SMART
                               QUOTE                                                                             fuel spend back
process for Insure
          advisers                         Marketing                                                10%


                                           and client                      Product           Excess
                                                                                            Funder
                                                                                                                Up to 10% of
                                                                                            Account
                                            support                     enhancements                            premium paid into
                                   FAST
  FastTrack replaces              TRACK                                                                         your Excess Funder
portable possessions                                                                      25%                   Account
     within 48hours
                                                                                                            Up to 25% of car
                                             Save up to
                                                                                                            premium paid into Young
       Select clients get up to              25%
                                             on premiums
                                                                                                            Adult Rewards Fund
                  25% off their
                    premiums                                                                    Benefit enhancements in
                                                                                                each area of cover
Discovery Insure 2012 Update

More Related Content

What's hot

castrol india limited innovative distribution channel
castrol india limited innovative distribution channelcastrol india limited innovative distribution channel
castrol india limited innovative distribution channelMohamed Nawfal Riyas
 
Hubspot Case Analysis
Hubspot Case AnalysisHubspot Case Analysis
Hubspot Case AnalysisYemi Adejumo
 
Asian Paints Canvas 2018 Case Competition - Campus Finalists
Asian Paints Canvas 2018 Case Competition - Campus FinalistsAsian Paints Canvas 2018 Case Competition - Campus Finalists
Asian Paints Canvas 2018 Case Competition - Campus FinalistsBhargava Ram
 
DaimlerChrysler: Post Merger News Case Analysis
DaimlerChrysler: Post Merger News Case AnalysisDaimlerChrysler: Post Merger News Case Analysis
DaimlerChrysler: Post Merger News Case AnalysisKaran Jaidka
 
SONY AIBO-The value proposition and rationale behind the positioning
SONY AIBO-The value proposition and rationale behind the positioningSONY AIBO-The value proposition and rationale behind the positioning
SONY AIBO-The value proposition and rationale behind the positioningJoel Daniel
 
BMW Z3 Roadster Launch in USA
BMW Z3 Roadster Launch in USABMW Z3 Roadster Launch in USA
BMW Z3 Roadster Launch in USAAbhishek Kapoor
 
EHarmony dating service business case
EHarmony dating service business caseEHarmony dating service business case
EHarmony dating service business caseKseniia Udovitskaia
 
Reflexive Supply Chains The Zenith of Agility - Rakesh Sinha
Reflexive Supply Chains The Zenith of Agility - Rakesh SinhaReflexive Supply Chains The Zenith of Agility - Rakesh Sinha
Reflexive Supply Chains The Zenith of Agility - Rakesh SinhaELSCC
 
Janalakshmi financial services
 Janalakshmi financial services Janalakshmi financial services
Janalakshmi financial servicesHaroop Sood
 
SG Cowen New Recruits
SG Cowen New RecruitsSG Cowen New Recruits
SG Cowen New RecruitsInes Ha
 
Michelin In the Land of the Maharajas (Ivey Case 907M30)
Michelin In the Land of the Maharajas (Ivey Case 907M30)Michelin In the Land of the Maharajas (Ivey Case 907M30)
Michelin In the Land of the Maharajas (Ivey Case 907M30)Aditya Jhunjhunuwala
 
Tata Steelathon Season 5 2018 Case Competion - National Second Runner ups
Tata Steelathon Season 5 2018 Case Competion - National Second Runner upsTata Steelathon Season 5 2018 Case Competion - National Second Runner ups
Tata Steelathon Season 5 2018 Case Competion - National Second Runner upsBhargava Ram
 
Case 19 harley davidson inc. 2008 IUBAT
Case 19 harley davidson inc. 2008 IUBATCase 19 harley davidson inc. 2008 IUBAT
Case 19 harley davidson inc. 2008 IUBATKanizpriyanka Fatama
 
Altius golf and the fighter brand ppt
Altius golf and the fighter brand pptAltius golf and the fighter brand ppt
Altius golf and the fighter brand pptHema Sharma
 
Wilkerson Company Case
Wilkerson Company CaseWilkerson Company Case
Wilkerson Company CaseElla Shen
 

What's hot (20)

castrol india limited innovative distribution channel
castrol india limited innovative distribution channelcastrol india limited innovative distribution channel
castrol india limited innovative distribution channel
 
Mahindra Rise
Mahindra RiseMahindra Rise
Mahindra Rise
 
Hubspot Case Analysis
Hubspot Case AnalysisHubspot Case Analysis
Hubspot Case Analysis
 
Asian Paints Canvas 2018 Case Competition - Campus Finalists
Asian Paints Canvas 2018 Case Competition - Campus FinalistsAsian Paints Canvas 2018 Case Competition - Campus Finalists
Asian Paints Canvas 2018 Case Competition - Campus Finalists
 
DaimlerChrysler: Post Merger News Case Analysis
DaimlerChrysler: Post Merger News Case AnalysisDaimlerChrysler: Post Merger News Case Analysis
DaimlerChrysler: Post Merger News Case Analysis
 
SONY AIBO-The value proposition and rationale behind the positioning
SONY AIBO-The value proposition and rationale behind the positioningSONY AIBO-The value proposition and rationale behind the positioning
SONY AIBO-The value proposition and rationale behind the positioning
 
BMW Z3 Roadster Launch in USA
BMW Z3 Roadster Launch in USABMW Z3 Roadster Launch in USA
BMW Z3 Roadster Launch in USA
 
EHarmony dating service business case
EHarmony dating service business caseEHarmony dating service business case
EHarmony dating service business case
 
Reflexive Supply Chains The Zenith of Agility - Rakesh Sinha
Reflexive Supply Chains The Zenith of Agility - Rakesh SinhaReflexive Supply Chains The Zenith of Agility - Rakesh Sinha
Reflexive Supply Chains The Zenith of Agility - Rakesh Sinha
 
Janalakshmi financial services
 Janalakshmi financial services Janalakshmi financial services
Janalakshmi financial services
 
Sale soft inc
Sale soft incSale soft inc
Sale soft inc
 
SG Cowen New Recruits
SG Cowen New RecruitsSG Cowen New Recruits
SG Cowen New Recruits
 
Global Source Case Study
Global Source Case StudyGlobal Source Case Study
Global Source Case Study
 
Aqualisa
AqualisaAqualisa
Aqualisa
 
Michelin In the Land of the Maharajas (Ivey Case 907M30)
Michelin In the Land of the Maharajas (Ivey Case 907M30)Michelin In the Land of the Maharajas (Ivey Case 907M30)
Michelin In the Land of the Maharajas (Ivey Case 907M30)
 
Ducati hbr case analysis
Ducati hbr  case analysisDucati hbr  case analysis
Ducati hbr case analysis
 
Tata Steelathon Season 5 2018 Case Competion - National Second Runner ups
Tata Steelathon Season 5 2018 Case Competion - National Second Runner upsTata Steelathon Season 5 2018 Case Competion - National Second Runner ups
Tata Steelathon Season 5 2018 Case Competion - National Second Runner ups
 
Case 19 harley davidson inc. 2008 IUBAT
Case 19 harley davidson inc. 2008 IUBATCase 19 harley davidson inc. 2008 IUBAT
Case 19 harley davidson inc. 2008 IUBAT
 
Altius golf and the fighter brand ppt
Altius golf and the fighter brand pptAltius golf and the fighter brand ppt
Altius golf and the fighter brand ppt
 
Wilkerson Company Case
Wilkerson Company CaseWilkerson Company Case
Wilkerson Company Case
 

Viewers also liked

DISCOVERY INSURE DASHBOARD
DISCOVERY INSURE DASHBOARDDISCOVERY INSURE DASHBOARD
DISCOVERY INSURE DASHBOARDattooh!
 
How discovery keeps innovating
How discovery keeps innovatingHow discovery keeps innovating
How discovery keeps innovatingAnkur Jain
 
Innovation system next practice
Innovation system next practiceInnovation system next practice
Innovation system next practiceThe Inovo Group
 
Top 10 Insurance Brands on Facebook in South Africa Q3-2016
Top 10 Insurance Brands on Facebook in South Africa Q3-2016Top 10 Insurance Brands on Facebook in South Africa Q3-2016
Top 10 Insurance Brands on Facebook in South Africa Q3-2016Andrew Felbert
 
Reverse innovation
Reverse innovationReverse innovation
Reverse innovationNeeraj Vig
 
PMP Preparation 1 - Framework
PMP Preparation 1 - FrameworkPMP Preparation 1 - Framework
PMP Preparation 1 - FrameworkAndrew Mikityuk
 
PMP Preparation 2 - Processes
PMP Preparation 2 - ProcessesPMP Preparation 2 - Processes
PMP Preparation 2 - ProcessesAndrew Mikityuk
 
PMP Prep 3 - Project Integration Management
PMP Prep 3 - Project Integration ManagementPMP Prep 3 - Project Integration Management
PMP Prep 3 - Project Integration ManagementAndrew Mikityuk
 
Health Insurance Innovation Summit 2017 - IoT in Health Insurance
Health Insurance Innovation Summit 2017 - IoT in Health InsuranceHealth Insurance Innovation Summit 2017 - IoT in Health Insurance
Health Insurance Innovation Summit 2017 - IoT in Health InsuranceAndrew Dart
 
SAP Integration: Best Practices | MuleSoft
SAP Integration: Best Practices | MuleSoftSAP Integration: Best Practices | MuleSoft
SAP Integration: Best Practices | MuleSoftMuleSoft
 

Viewers also liked (13)

DISCOVERY INSURE DASHBOARD
DISCOVERY INSURE DASHBOARDDISCOVERY INSURE DASHBOARD
DISCOVERY INSURE DASHBOARD
 
Inovo futuring overview
Inovo futuring overviewInovo futuring overview
Inovo futuring overview
 
Dr. Hector Upegui, Is there a new momentum for disability management? A refle...
Dr. Hector Upegui, Is there a new momentum for disability management? A refle...Dr. Hector Upegui, Is there a new momentum for disability management? A refle...
Dr. Hector Upegui, Is there a new momentum for disability management? A refle...
 
How discovery keeps innovating
How discovery keeps innovatingHow discovery keeps innovating
How discovery keeps innovating
 
Innovation system next practice
Innovation system next practiceInnovation system next practice
Innovation system next practice
 
Top 10 Insurance Brands on Facebook in South Africa Q3-2016
Top 10 Insurance Brands on Facebook in South Africa Q3-2016Top 10 Insurance Brands on Facebook in South Africa Q3-2016
Top 10 Insurance Brands on Facebook in South Africa Q3-2016
 
Reverse innovation
Reverse innovationReverse innovation
Reverse innovation
 
Social Media Integration Survey
Social Media Integration SurveySocial Media Integration Survey
Social Media Integration Survey
 
PMP Preparation 1 - Framework
PMP Preparation 1 - FrameworkPMP Preparation 1 - Framework
PMP Preparation 1 - Framework
 
PMP Preparation 2 - Processes
PMP Preparation 2 - ProcessesPMP Preparation 2 - Processes
PMP Preparation 2 - Processes
 
PMP Prep 3 - Project Integration Management
PMP Prep 3 - Project Integration ManagementPMP Prep 3 - Project Integration Management
PMP Prep 3 - Project Integration Management
 
Health Insurance Innovation Summit 2017 - IoT in Health Insurance
Health Insurance Innovation Summit 2017 - IoT in Health InsuranceHealth Insurance Innovation Summit 2017 - IoT in Health Insurance
Health Insurance Innovation Summit 2017 - IoT in Health Insurance
 
SAP Integration: Best Practices | MuleSoft
SAP Integration: Best Practices | MuleSoftSAP Integration: Best Practices | MuleSoft
SAP Integration: Best Practices | MuleSoft
 

Similar to Discovery

05 toyota manufacturing, eko rudianto
05   toyota manufacturing, eko rudianto05   toyota manufacturing, eko rudianto
05 toyota manufacturing, eko rudiantobocah666
 
06 toyota manufacturing, eko rudianto
06   toyota manufacturing, eko rudianto06   toyota manufacturing, eko rudianto
06 toyota manufacturing, eko rudiantobocah666
 
arvinmeritor Announcement_of_LVS_Spinoff_050608_FINAL
arvinmeritor Announcement_of_LVS_Spinoff_050608_FINALarvinmeritor Announcement_of_LVS_Spinoff_050608_FINAL
arvinmeritor Announcement_of_LVS_Spinoff_050608_FINALfinance27
 
arvinmeritor _Announcement_of_LVS_Spinoff_050608_FINAL
arvinmeritor _Announcement_of_LVS_Spinoff_050608_FINALarvinmeritor _Announcement_of_LVS_Spinoff_050608_FINAL
arvinmeritor _Announcement_of_LVS_Spinoff_050608_FINALfinance27
 
The Other Face Of Automation
The Other Face Of AutomationThe Other Face Of Automation
The Other Face Of AutomationGSAutomationSpA
 
tenneco annual reports 2002
tenneco annual reports 2002tenneco annual reports 2002
tenneco annual reports 2002finance46
 
Q1 2009 Earning Report of Group 1 Automotive Inc.
Q1 2009 Earning Report of Group 1 Automotive Inc.Q1 2009 Earning Report of Group 1 Automotive Inc.
Q1 2009 Earning Report of Group 1 Automotive Inc.earningreport earningreport
 
Pcsd newsletter-special edition-2007
Pcsd newsletter-special edition-2007Pcsd newsletter-special edition-2007
Pcsd newsletter-special edition-2007Omar Halawani
 
goodrich 4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlides
goodrich  4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlidesgoodrich  4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlides
goodrich 4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlidesfinance44
 
goodrich 4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlides
goodrich  4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlidesgoodrich  4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlides
goodrich 4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlidesfinance44
 
October 2012 Global Video Insights
October 2012 Global Video InsightsOctober 2012 Global Video Insights
October 2012 Global Video InsightsVuclipInsights
 
952553 abstract a synthetic diesel engine
952553 abstract a synthetic diesel engine952553 abstract a synthetic diesel engine
952553 abstract a synthetic diesel enginefiltermag
 
lear 09 2606
lear 09 2606lear 09 2606
lear 09 2606finance16
 
Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference
Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel ConferenceBank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference
Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel ConferenceAnglo American
 
Increased Sales For Petroleum Distributors
Increased Sales For Petroleum DistributorsIncreased Sales For Petroleum Distributors
Increased Sales For Petroleum DistributorsBKC2121
 
Increased sales for petroleum distributors
Increased sales for petroleum distributorsIncreased sales for petroleum distributors
Increased sales for petroleum distributorsDigital Refiners
 

Similar to Discovery (20)

05 toyota manufacturing, eko rudianto
05   toyota manufacturing, eko rudianto05   toyota manufacturing, eko rudianto
05 toyota manufacturing, eko rudianto
 
06 toyota manufacturing, eko rudianto
06   toyota manufacturing, eko rudianto06   toyota manufacturing, eko rudianto
06 toyota manufacturing, eko rudianto
 
arvinmeritor Announcement_of_LVS_Spinoff_050608_FINAL
arvinmeritor Announcement_of_LVS_Spinoff_050608_FINALarvinmeritor Announcement_of_LVS_Spinoff_050608_FINAL
arvinmeritor Announcement_of_LVS_Spinoff_050608_FINAL
 
arvinmeritor _Announcement_of_LVS_Spinoff_050608_FINAL
arvinmeritor _Announcement_of_LVS_Spinoff_050608_FINALarvinmeritor _Announcement_of_LVS_Spinoff_050608_FINAL
arvinmeritor _Announcement_of_LVS_Spinoff_050608_FINAL
 
auto.pdf
auto.pdfauto.pdf
auto.pdf
 
FleetWare NITRO
FleetWare NITROFleetWare NITRO
FleetWare NITRO
 
Synterium community marketing plan
Synterium community marketing plan Synterium community marketing plan
Synterium community marketing plan
 
The Other Face Of Automation
The Other Face Of AutomationThe Other Face Of Automation
The Other Face Of Automation
 
tenneco annual reports 2002
tenneco annual reports 2002tenneco annual reports 2002
tenneco annual reports 2002
 
Q1 2009 Earning Report of Group 1 Automotive Inc.
Q1 2009 Earning Report of Group 1 Automotive Inc.Q1 2009 Earning Report of Group 1 Automotive Inc.
Q1 2009 Earning Report of Group 1 Automotive Inc.
 
Sap
SapSap
Sap
 
Pcsd newsletter-special edition-2007
Pcsd newsletter-special edition-2007Pcsd newsletter-special edition-2007
Pcsd newsletter-special edition-2007
 
goodrich 4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlides
goodrich  4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlidesgoodrich  4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlides
goodrich 4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlides
 
goodrich 4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlides
goodrich  4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlidesgoodrich  4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlides
goodrich 4B172891-2E0A-4999-8551-09E2E82DAE5F_20090310JPMSlides
 
October 2012 Global Video Insights
October 2012 Global Video InsightsOctober 2012 Global Video Insights
October 2012 Global Video Insights
 
952553 abstract a synthetic diesel engine
952553 abstract a synthetic diesel engine952553 abstract a synthetic diesel engine
952553 abstract a synthetic diesel engine
 
lear 09 2606
lear 09 2606lear 09 2606
lear 09 2606
 
Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference
Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel ConferenceBank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference
Bank of America Merrill Lynch 2012 Global Metals, Mining & Steel Conference
 
Increased Sales For Petroleum Distributors
Increased Sales For Petroleum DistributorsIncreased Sales For Petroleum Distributors
Increased Sales For Petroleum Distributors
 
Increased sales for petroleum distributors
Increased sales for petroleum distributorsIncreased sales for petroleum distributors
Increased sales for petroleum distributors
 

More from Senate Group Financial Advisors

Absa bank, Senate group conference - presentation by ABSA stockbrokers and po...
Absa bank, Senate group conference - presentation by ABSA stockbrokers and po...Absa bank, Senate group conference - presentation by ABSA stockbrokers and po...
Absa bank, Senate group conference - presentation by ABSA stockbrokers and po...Senate Group Financial Advisors
 
Absa bank, Senate group conference - presentation by Johann Gunter
Absa bank, Senate group conference - presentation by Johann GunterAbsa bank, Senate group conference - presentation by Johann Gunter
Absa bank, Senate group conference - presentation by Johann GunterSenate Group Financial Advisors
 

More from Senate Group Financial Advisors (20)

Old Mutual, Senate Group
Old Mutual, Senate Group   Old Mutual, Senate Group
Old Mutual, Senate Group
 
Old mutual, Senate group
Old mutual, Senate group  Old mutual, Senate group
Old mutual, Senate group
 
Momentum, Senate group
Momentum, Senate groupMomentum, Senate group
Momentum, Senate group
 
Investec, Senate group
Investec, Senate groupInvestec, Senate group
Investec, Senate group
 
Investec, Senate Group
Investec, Senate GroupInvestec, Senate Group
Investec, Senate Group
 
Element, Senate group - sk,ab final
Element, Senate group - sk,ab finalElement, Senate group - sk,ab final
Element, Senate group - sk,ab final
 
Absa bank, Senate group conference - presentation by ABSA stockbrokers and po...
Absa bank, Senate group conference - presentation by ABSA stockbrokers and po...Absa bank, Senate group conference - presentation by ABSA stockbrokers and po...
Absa bank, Senate group conference - presentation by ABSA stockbrokers and po...
 
Absa bank, Senate group conference - presentation by Johann Gunter
Absa bank, Senate group conference - presentation by Johann GunterAbsa bank, Senate group conference - presentation by Johann Gunter
Absa bank, Senate group conference - presentation by Johann Gunter
 
Ultima
UltimaUltima
Ultima
 
Prudential
PrudentialPrudential
Prudential
 
Prescient
PrescientPrescient
Prescient
 
Old Mutual optimising the value of advice
Old Mutual optimising the value of adviceOld Mutual optimising the value of advice
Old Mutual optimising the value of advice
 
Clientele - estate preservation plan Senate Group
Clientele - estate preservation plan Senate GroupClientele - estate preservation plan Senate Group
Clientele - estate preservation plan Senate Group
 
Absa Linked Investments
Absa Linked InvestmentsAbsa Linked Investments
Absa Linked Investments
 
Old Mutual: Greenlight presentation
Old Mutual: Greenlight presentationOld Mutual: Greenlight presentation
Old Mutual: Greenlight presentation
 
Old Mutual Rewards: Registration process updated
Old Mutual Rewards: Registration process updatedOld Mutual Rewards: Registration process updated
Old Mutual Rewards: Registration process updated
 
Old Mutual: Greenlight unmatched heart stroke
Old Mutual: Greenlight unmatched heart strokeOld Mutual: Greenlight unmatched heart stroke
Old Mutual: Greenlight unmatched heart stroke
 
Old Mutual: Greenlight
Old Mutual: GreenlightOld Mutual: Greenlight
Old Mutual: Greenlight
 
Old Mutual: Earnings multiples
Old Mutual: Earnings multiplesOld Mutual: Earnings multiples
Old Mutual: Earnings multiples
 
Why Incompass.
Why Incompass.Why Incompass.
Why Incompass.
 

Recently uploaded

Deutsche EuroShop | Preliminary Results FY 2023
Deutsche EuroShop | Preliminary Results FY 2023Deutsche EuroShop | Preliminary Results FY 2023
Deutsche EuroShop | Preliminary Results FY 2023Deutsche EuroShop AG
 
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024Osisko Gold Royalties Ltd
 
Terna Capital Markets Day 2024 Presentation
Terna Capital Markets Day 2024 PresentationTerna Capital Markets Day 2024 Presentation
Terna Capital Markets Day 2024 PresentationTerna SpA
 
Deutsche EuroShop | Company Presentation | 03/24
Deutsche EuroShop | Company Presentation | 03/24Deutsche EuroShop | Company Presentation | 03/24
Deutsche EuroShop | Company Presentation | 03/24Deutsche EuroShop AG
 
Advancing Discovery New Craigmont Project’s High-grade Copper Potential
Advancing Discovery New Craigmont Project’s High-grade Copper PotentialAdvancing Discovery New Craigmont Project’s High-grade Copper Potential
Advancing Discovery New Craigmont Project’s High-grade Copper Potentialnicola_mining
 
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDFWWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDFMichael Claudio
 
Nicola Mining Inc. Corporate Presentation March 2024
Nicola Mining Inc. Corporate Presentation March 2024Nicola Mining Inc. Corporate Presentation March 2024
Nicola Mining Inc. Corporate Presentation March 2024nicola_mining
 

Recently uploaded (7)

Deutsche EuroShop | Preliminary Results FY 2023
Deutsche EuroShop | Preliminary Results FY 2023Deutsche EuroShop | Preliminary Results FY 2023
Deutsche EuroShop | Preliminary Results FY 2023
 
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
 
Terna Capital Markets Day 2024 Presentation
Terna Capital Markets Day 2024 PresentationTerna Capital Markets Day 2024 Presentation
Terna Capital Markets Day 2024 Presentation
 
Deutsche EuroShop | Company Presentation | 03/24
Deutsche EuroShop | Company Presentation | 03/24Deutsche EuroShop | Company Presentation | 03/24
Deutsche EuroShop | Company Presentation | 03/24
 
Advancing Discovery New Craigmont Project’s High-grade Copper Potential
Advancing Discovery New Craigmont Project’s High-grade Copper PotentialAdvancing Discovery New Craigmont Project’s High-grade Copper Potential
Advancing Discovery New Craigmont Project’s High-grade Copper Potential
 
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDFWWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
 
Nicola Mining Inc. Corporate Presentation March 2024
Nicola Mining Inc. Corporate Presentation March 2024Nicola Mining Inc. Corporate Presentation March 2024
Nicola Mining Inc. Corporate Presentation March 2024
 

Discovery

  • 1. Discovery Insure 2012 Product update Francois Theron | COO Discovery Insure
  • 3. Background to the launch of Discovery Insure 1 2 3 Mainstream emergence of The relevance of Discovery’s Rising and volatile fuel price telematics technology as a behavioural economics negatively impacting cost of premium rating factor experience to short-term vehicle ownership insurance Fuel price Oil price Causes of motor vehicle accidents R 12 160 140 R 10 Road Inappropriate 120 Cornering conditions driving R8 100 8% R6 80 60 R4 Braking Acceleration 34% 49% 40 R2 20 R0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 9% Pedestrian Vehicle Actual f uel price (Rands) Actual oil price (US dollars) Cornering related safety Understand and reward good Ability to positively impact road Mechanism to incentivise driver behaviour safety positive behavioral change
  • 4. The Discovery Insure Product Platform State-of-the-art vehicle and passenger safety ImpactAlert™: Stolen vehicle Vehicle Protector™: Family Protector™: Pro-active recovery at no Tools to improve Additional family emergency additional cost vehicle safety safety features response Comprehensive motor insurance Fuel rewards Get 50% of fuel spend back each month, Or 100% of fuel spend to fund Flexible policy excess The better you drive, options for the higher your status, the greater your household Driver Quotient™ rewards measures driver and No excess on HomeProtector™: burglary, Security and performance personal hijacking, emergency cover storm or fire accommodation 4
  • 5. Discovery Insure: The year in review Press coverage Key metrics 311 100 fuel transactions 7.7m ℓitres of fuel purchased at BP 20 100 drivers tracked in real time with DQ-Track R3.25 bn vehicles comprehensively insured 132 million kilometres of behavioural data R7.93 bn comprehensively insured household and personal cover
  • 6. The Discovery Insure business cycle Experience review Marketing and client Product support enhancements
  • 7. The Discovery Insure business cycle Experience review Marketing and client Product support enhancements
  • 8. Vitalitydrive is having a 1 tangible impact on client behaviour
  • 9. Behaviour change manifests in three key areas High engagement in driver Substantial shift in day-to-day Demonstrable changes in driver awareness and vehicle safety consumer choices behaviour activities Tiger Wheel and Tyre MultiPoint checks BP market share analysis Indexed Driver Performance Scores (Month 1 = 100) 8000 118 7000 77% 116 114 6000 112 5000 110 4000 108 3000 106 2000 104 20% 1000 102 0 100 Jun-11 Oct-11 Aug-11 Feb-12 Apr-12 Dec-11 BP National market BP national Proportion of petrol Month Month Month Month Month share market share spend at BP for 1 2 3 4 5 Vitalitydrive clients VitalityDrive clients Over 7 000 MultiPoint checks 17% improvement in 77% of fuel spend at BP outlets completed Driver Performance Scores
  • 10. Improvements in driver behaviour are directly correlated with 2 fewer motor vehicle accidents and lower insurance costs
  • 11. Driver behaviour is directly correlated with accident risk Indexed loss ratios by Vitalitydrive status (Base = 100%) 100% 100% 90% 80% 70% 74% 60% 50% 54% 40% 30% 31% 20% 10% 0% Base Neutral Engaged Advanced
  • 12. DQ-Track facilitates a robust 3 understanding of the underlying causes of motor vehicle accidents
  • 13. South Africa’s roads are amongst the most dangerous in the world Road fatalities per capita (per 100 000 inhabitants p.a.) UK 3.59 India 11.1 USA 12.3 China 16.5 Russia 18.5 Brazil 19.9 South Africa 33.2 South Africa’s fatality rate is significantly higher than other BRIC countries, with Broader societal costs associatedfatalities per year are substantial 14 000 road with road accidents Source: List of OECD countries by traffic-related death rate
  • 14. Unique insights into the causes of motor vehicle accidents Drivers displaying risky driving behaviour 15 Type of risky behaviour displayed prior to an minutes or less prior to a serious accident accident No 53% 39% 37% 32% 16% 5% Yes Late night Braking Speeding Accelerating Cornering 61% driving Note: Drivers can have more than one type of risky event prior to an accident
  • 15. Measureable behaviours are directly correlated with accident risk Relative accident risk, 2011 Insure data 9.7 9.7 1.3 1.4 1.4 0.8 0.8 Morning Lunch time Early evening Late night There is a ten times higher likelihood of having a motor vehicle accident at night
  • 16. Strong correlations are emerging between 4 driving behaviour and other drivers of insurance risk
  • 17. Cross-company analytics provide unique insights into the drivers of insurance risk Case study 1: Wellness outcomes are directly Case study 2: Credit risk is directly correlated with driving behaviour correlated with driving behaviour Percentage of healthy* drivers by Vitalitydrive status Credit default rates by Vitalitydrive status 10% 10% 82% 8% 67% 48% 37% 4% 1% Base Neutral Engaged Advanced Base Neutral Engaged Advanced *Note: Healthy is defined as being on Gold or Diamond Vitality status P(Credit default) is the probability of being 3 months in arrears or worse at least once during a year
  • 18. The core product is providing 5 high coverage levels to clients
  • 19. Discovery Insure claim payments reflect comprehensive product offering Discovery Insure claims payout ratios Analysis of repudiated claims Other No cover Repudiated 9% 44% 2% Unlicensed driver 9% Pre-existing damage Approved 16% Fraud 98% 22%
  • 20. The Discovery Insure business cycle Young adults display high risk driving behaviours Unique client data provides strong Vitalitydrive engagement predictor of insurance risk lowers accident risk 98% benefit coverage ratios 2 3 4 Rewards change client behaviour 1 5 Experience review Marketing and client Product support enhancements
  • 21. 2012 Strategic product objectives 1 Restructure Vitalitydrive to simplify and enhance the benefits Create targeted incentives to drive a step change in 2 road safety for young adult drivers 3 Enhance coverage levels across the product
  • 22. 2012 Strategic product objectives 1 Restructure Vitalitydrive to simplify and enhance the benefits Create targeted incentives to drive a step change in 2 road safety for young adult drivers 3 Enhance coverage levels across the product
  • 23. Increasing relevance of the fuel benefit construct Fuel price progression since the launch of Discovery Insure (Rand per litre) R11.67 Discovery Insure launch R 12.60 R 12.20 R10.23 R 11.80 R 11.40 R 11.00 R 10.60 R8.45 R 10.20 R 9.80 R 9.40 R 9.00 R 8.60 R 8.20 R 7.80 R 7.40 R 7.00 Nov-10 Nov-11 Jan-10 Mar-10 Sep-10 Jan-11 Mar-11 Sep-11 Jan-12 Mar-12 May-11 Feb-10 May-10 Feb-11 Feb-12 May-12 Apr-11 Apr-10 Jun-10 Jun-11 Apr-12 Jun-12 Jul-10 Aug-10 Dec-10 Jul-11 Aug-11 Dec-11 Oct-10 Oct-11 Gauteng Prices (Pricing Zone 9C), 95-Octane unleaded
  • 24. Analysing the different rewards structures available through Vitalitydrive Composition of Vitalitydrive rewards Composition of Vitalitydrive fuel rewards Travel Rewards at DiscoveryCard other stations 3% 4% 22% Rewards at Fuel BP stations 75% 96%
  • 25. Factors informing the restructure of Vitalitydrive rewards 01 75% 75% of Vitalitydrive Boost BP fuel cash rewards in fuel back 96% 96% of all fuel rewards earned at BP 1 in 3 More than 1 in 3 Insure clients do not have a DiscoveryCard Excess Funder Account R4m balances 20% + Experience on supported policies Risk- Registrar guidelines to based remove ‘non-risk’ reward travel and card rewards
  • 26. Clients can now get up to 50% of their BP fuel spend back INSURE YOUR CAR AND HOME AND ACTIVATE You get 20% 50% Cash back on your BP fuel spend every month You automatically get 20% Complete and pass the Tiger cash back on your monthly BP Wheel & Tyre Annual MultiPoint Boost your Excess Funder fuel spend check Account and double your fuel rewards to 100% Note: Your monthly fuel rewards are based on your number of DQ Points earned
  • 27. Factors informing the restructure of Vitalitydrive rewards 01 75% 75% of Vitalitydrive Boost BP fuel cash rewards in fuel back 96% 96% of all fuel rewards earned at BP 1 in 3 More than 1 in 3 02 Insure clients do not Ensure maximum level have a DiscoveryCard of fuel reward is available to all clients Excess Funder Account R4m balances 20% + Experience on supported policies Risk- Registrar guidelines to based remove ‘non-risk’ reward travel and card rewards
  • 28. The revised fuel rewards structure ensures that the maximum level of fuel rewards are available to all clients 2011 BP fuel rewards structure 2012 BP fuel rewards structure Payment MultiPoint MultiPoint Automatic Policy type Automatic mechanism check check Other 10% 25% Car only 10% 25% DiscoveryCard 15% 40% Car and home 20% 50%
  • 29. Factors informing the restructure of Vitalitydrive rewards 01 75% 75% of Vitalitydrive Boost BP fuel cash rewards in fuel back 96% 96% of all fuel rewards earned at BP 1 in 3 More than 1 in 3 02 Insure clients do not Ensure maximum level have a DiscoveryCard of fuel reward is available to all clients Excess Funder Account R4m balances 20% + Experience on supported policies 03 Embed an Excess Risk- Registrar guidelines to Funder Account in all based remove ‘non-risk’ reward Vitalitydrive policies travel and card rewards
  • 30. Vitalitydrive members automatically get up to 10% of their premiums paid into their EFA each month Percentage of car insurance premium paid into the Excess Funder Account every month 10% Advanced 5% Engaged 2.5% Neutral 0% Base status
  • 31. The Excess Funder Account Booster in action Excess Funder Account balance for a client on Advanced status with a motor premium of R750 per month and R400 monthly fuel rewards R19,200 R28,800 R38,400 R48,000 R9,600 Excess Funder Account Booster Plan R 4 500 excess R 3 600 Embedded Excess Funder R 2 700 Account R 1 800 R 900 End Year 1 1 End Year 2 2 End Year 3 3 End Year 4 4 End Year 5 5 Access 50% of the fund after three years Opportunity for clients to build real long term insurance equity
  • 32. Factors informing the restructure of Vitalitydrive rewards 01 75% 75% of Vitalitydrive Boost BP fuel rewards in fuel cash back 96% 96% of all fuel rewards earned at BP 1 in 3 More than 1 in 3 02 Insure clients do not Maximum fuel rewards have a DiscoveryCard available to all clients with supported policies Excess Funder Account R4m balances 20% + Experience on supported policies 03 10% Excess Funder Embedded Excess Risk- Registrar guidelines to Account based remove ‘non-risk’ Funder Account reward travel and card rewards
  • 33. 2012 Strategic product objectives 50% Restructure Vitalitydrive to simplify and enhance Excess 1 the benefits Funder Account Create targeted incentives to drive a step change 2 in road safety for young adult drivers 3 Enhance coverage levels across the product
  • 34. Young adults account for a disproportionately high frequency of motor vehicle accidents and accident related deaths Motor vehicle accidents account for 75% of Over 90% of young adults drive late at night young adult deaths Proportion of young adults driving late Proportion of young adult deaths by cause at night, 2012 survey Drive during the day Natural 8% 25% Motor vehicle accidents Drive late at night 75% 92%
  • 35. The Discovery Insure Young Adult plan Up to 50% of their BP fuel spend 25% of car back in cash premiums into the Young Adult Rewards Fund MONTHLY BOOSTER • Up to R200 per month paid into Rewards Fund based on Vitalitydrive status NightDriver gives discounted home drive • Reduced by R10 per km services and preserves the driven between 23:00 and Rewards Fund balance 04:30
  • 36. The Young Adult plan in action 01 25% of car premiums into Young Adult Rewards 02 Regular feedback to Fund improve your driving 03 Boost your Fund by driving well Drive Well Base - R 200 Neutral R0 Engaged R 50 Advanced R 200 04 or NightDriver gives you access to RoadTrip or SmartGuyz at a For every kilometre substantial discount you drive between 23:00 and 04:30, R10 is deducted from the Fund 23:00 05 Every six months, you can withdraw the available 04:30 money in the Fund Note: Extensive night driving will result in a premium increase after six months
  • 37. Young adults can earn unprecedented rewards with Discovery Insure Dan gains R1 200 from his fuel benefits Dan gains R2 670 overall from the Young Adult plan over 6 months Cumulative fuel rewards R 1 200 R 1 000 Profile R 800 • Name: Dan R 600 • Age: 22 R 400 R 200 Driving experience over 6 month period R0 • Fuel spend: R 800 per month 1 2 3 4 5 6 • Car premium: R 680 per month (no home insurance) + • Driver status: Month Dan gains R1 470 from his Rewards Fund • Engaged for 2 months • Advanced for 4 months Rewards fund after 6 months • Night driving: 45 kms R 2 000 R 1 500 R 1 000 R 500 R0 25% of Vitality status Night time Cumulative premiums booster driving value
  • 38. 2012 Strategic product objectives 50% Restructure Vitalitydrive to simplify and enhance Excess 1 the benefits Funder Account 25% Create targeted incentives to drive a step change in 2 road safety for young adult drivers 3 Enhance coverage levels across the product
  • 39. Cover enhancements effective 1 August 2012 Enhancements to cover, Improved cover for accidental Broader range of cover for removed restrictions on use of damage, goods in open and unspecified items car and extended territorial cover for goods away from home limits Enhancements to liability cover Liability cover introduced for Caravan contents included in all and offroad use sailboats and jet skis risk cover
  • 41. 2012 Strategic product objectives 50% 10% Restructure Vitalitydrive to simplify and enhance Excess 1 the benefits Funder Account 25% Create targeted incentives to drive a step change in 2 road safety for young adult drivers 3 Enhance coverage levels across the product
  • 42. The Discovery Insure business cycle Young adults display high risk driving behaviours Unique client data provides strong Vitalitydrive engagement predictor of insurance risk lowers accident risk 98% benefit coverage ratios 2 3 4 Rewards change client behaviour 1 5 Experience review 50% Up to 50% of BP fuel spend back Marketing 10% and client Product Excess Funder Up to 10% of Account support enhancements premium paid into your Excess Funder 25% Account Up to 25% of car premium paid into Young Adult Rewards Fund Benefit enhancements in each area of cover
  • 43. 2012 Marketing and client support Leverage our breadth of data and analytic 1 capabilities to improve premium efficiency for Select clients Focus on areas to enhance the service experience 2 for clients and advisers 3 Digitalise the advice and new business process
  • 44. “Big data” can be used to generate significant financial value Global personal US health care location data • >$100 billion revenue for service • $300 billion value per year providers • ~0.7% annual productivity growth • Up to $700 billion value to end users US retail Manufacturing • >60% increase in net margin • Up to 50% decrease in product development, assembly costs possible • 0.5–1% annual productivity growth • Up to 7% reduction in working capital Source: McKinsey Global Institute analysis
  • 45. Discovery Insure is uniquely positioned to understand insurance risk VEHICLE CHECK
  • 46. Select client pricing model Select clients automatically qualify for a 5% discount in premium Save 5% on premiums
  • 47. Select client qualifying criteria Wellness engagement Socio-economic factors 1 2 Vitality status: Silver, Gold or Diamond DiscoveryCard: Gold Discovery Life plan of or Platinum R3 million or more OR Silver AND Gold Diamond 100 000 clients automatically qualify for 5% premium discount
  • 48. Select client pricing model Select clients Dynamic behavioural Select clients can save as automatically qualify for algorithm assesses risk much as 25% on their a 5% discount in profiles across multiple premiums premium variables Discovery Vitality Wellness choices Save Save up to Credit risk profile and 5% DiscoveryCard retail behaviour 25% on premiums Benefit choices and on premiums Discovery Life risk attitudes Discovery Invest Risk attitudes Automatically applied during quoting process
  • 49. The impact of being a Discovery Insure Select client Case study: Select client; R1 000 pm BP fuel spend; 1000 DQ Points; ADVANCED Car insurance premium: R1500 R 2,500 R 2,000 Net R 2,000 R2,000 R500 R 500 R1 150 saving R 1,500 R 300 R500 R150 R 1,000 R 1,125 R850 R 500 R0 Discovery Insure premium Select discount Fuel rewards Excess Funder Effective premium
  • 50. 2012 Marketing and client support Leverage our breadth of data and analytic Save up to 1 capabilities to improve premium efficiency for 25% on premiums Select clients Focus on areas to enhance the service experience 2 for clients and advisers 3 Digitalise the advice and new business process
  • 51. SmartService is providing Insure clients with a unique service experience New business • Over 16 000 plans already activated • 84% of new business applications are finalised within 4 hours • 96% of underwriting is completed within 4 hours DQ-Track installations • Over 20 000 installations completed by our experienced technicians • Focus on client experience: currently rated at 9 out of 10 • Continue to see a positive trend Rewards • Over R8 million paid out in Vitalitydrive rewards • Over R4 million held in Excess Funder Account balances Benefits and services • Over R60 million paid out in claims • 76% of stolen vehicles recovered by DQ-Track
  • 52. FastTrack service from SmartClaims FastTrack approved items will be replaced within 24 hours in Gauteng or 48 hours in other large metropolitan areas Laptops GPS devices E-readers Tablets Smartphones Cameras MP3 player FastTrack Claims Promise If we fail to deliver on our promise, we will waive the excess on your claim
  • 53. NightDriver from Discovery Insure NightDriver– providing Vitalitydrive members access to a network of accredited home drive services Use SmartGuyz services without a Subscribe to RoadTrip or SmartGuyz subscription • Subscribe and receive a • Contact SmartGuyz and pay a flat discounted monthly fee based on fee of R100 – first 10km included Vitalitydrive status • Normal tariffs apply thereafter • Allocated number of kilometres per month - charged thereafter OR • No registration necessary – SmartGuyz will verify Vitalitydrive • Discounts up to 25% based on membership Vitalitydrive status NightDriver is available in the larger metropolitan areas
  • 54. 2012 Marketing and client support Leverage our breadth of data and analytic Save up to 1 capabilities to improve premium efficiency for 25% on premiums Select clients Focus on areas to enhance the service experience 2 for clients and advisers 3 Digitalise the advice and new business process
  • 55. The Discovery Insure product platform generates unprecedented value for clients The case study of Dave, his wife Linda, and his son Dan illustrates the key benefits Home insurance Dave’s car R530 premium R1 300 premium R1 000 Fuel spend 800 DQ Points for six months Dan’s car Linda’s car R680 premium; R750 premium Young Adult plan; R1 000 Fuel spend R1 000 Fuel spend; 1000 DQ Points for 800 DQ Points two months; six months 1000 DQ Points four months; 45km of nighttime driving Dave’s total insurance premium: R 3 407 per month
  • 56. The Discovery Insure and Vitalitydrive product platform generates unprecedented value for Dave and his family Premium compared to cumulative rewards in 6 months of Dave’s premiums paid 47% out in cash rewards R 20 442 10% 25% R 16 400 Excess Funder Account R 8 200 R 840 R 1 470 Premium Cash rewards Excess Funder Account Young Adult Cash fuel Embedded Excess Rewards Fund rewards Funder Account
  • 57. The Discovery Insure and Vitalitydrive product platform generates unprecedented value for Dave and his family Premium compared to cumulative rewards in 6 months of Dave’s premiums 84% paid into his Excess Funder Account 100% BOOSTER R 20 442 R 16 400 R 8 200 R 1 470 Premium Cash rewards Excess Funder Account Young Adult Cash fuel Embedded Excess Excess Funder Rewards Fund rewards Funder Account Account Booster
  • 59. 2012 Marketing and client support Save up to Leverage our breadth of data and analytic 1 capabilities to improve premium efficiency for 25% on premiums Select clients Focus on areas to enhance the service experience 2 for clients and advisers 3 Digitalise the advice and new business process
  • 60. The Discovery Insure business cycle Young adults display high risk driving behaviours Unique client data provides strong Vitalitydrive engagement predictor of insurance risk lowers accident risk 98% benefit coverage ratios 2 3 4 Rewards change client behaviour 1 5 Experience review 50% Up to 50% of BP Digital advice SMART QUOTE fuel spend back process for Insure advisers Marketing 10% and client Product Excess Funder Up to 10% of Account support enhancements premium paid into FAST FastTrack replaces TRACK your Excess Funder portable possessions 25% Account within 48hours Up to 25% of car Save up to premium paid into Young Select clients get up to 25% on premiums Adult Rewards Fund 25% off their premiums Benefit enhancements in each area of cover