How we performedINSURE
INSURE
OUR PERFORMANCE IN 2016
Discovery Insure showed positive new business growth for the year of 7% (R841 million), with a strong second half (14% to R439 million). The business remains on track to break even during the next financial year.
As we take the business to scale, we are able to extend our understanding of driver behaviour and use data generated more effectively, to design relevant rewards that will further encourage safer driving. For example, we are now able to offer upfront bonuses based on client profiles that are adjusted dynamically as the policy progresses and clients interact with the Vitalitydrive programme. The introduction of Vitality Active Rewards, tailored for Discovery Insure products, has further increased engagement and encouraged safer driving. As a result, we have substantially improved the quality of new business and our ability to attract and select high-quality clients.
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Chief Executive Officer
Chief Executive Officer
Discovery Insure offers products that are unique in the South African market, with clients being rewarded for improving their driving behaviour.
Discovery Insure offers rewards such as up to 50% of fuel and Gautrain travel costs in cash back to clients as they improve their driving behaviour. Dynamic pricing of policies is also being rolled out to reinforce the link between safe driving and insurance premiums. This enables clients to benefit from lower-cost policies that are underpinned by better driving behaviour, rather than price competition alone.
Since founding the business in 2011, data relating to driving behaviour has been gathered through our continually-evolving telematics technology. This data forms the basis of our model, which measures the frequency and severity of accidents based on driver performance, driver awareness and vehicle condition. Clients receive regular feedback and improved driver behaviour is rewarded.
2016 STRATEGIC
OBJECTIVES
In our previous report, we outlined strategic objectives in a number of key areas. In this section we report on our progress.
Our unique approach to insurance has enabled us to enter a well-developed market with several players and to compete effectively for business on the basis of positive structural change rather than cost. We are now in the top 10 short-term insurance companies by market share. We are also the fastest-growing short-term insurer in South Africa to date.
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