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Johannesburg - Health insurance group Discovery Holdings [JSE:DSY] has entered the R50bn South African short-term insurance market with the
launch of Discovery Insure.
Discovery CEO Adrian Gore said it had studied
the market for a number of years was optimistic about bringing about
"structural change."
"Discovery clients have come to expect compelling
product innovation that meet their needs. We are confident that with Discovery
Insure we will encourage consumers to change their behaviour and reap rewards
for it," he said.
He said Discovery Insure aimed to reduce the cost of
insurance through "positive behavioural change", to channel actuarial
and risk management savings to reduce the cost of fuel for clients, and to help
make the roads safer.
It will provide incentives to customers to encourage better driving
and will work with partners such as the BP fuel network, Tiger Wheel &
Tyre, and its VitalityDrive programme.
Discovery Insure is led by industry veteran Steffen Gilbert.
"I am delighted to head up a new business within the
Discovery fold that we see improving the level of competitiveness in the market
by rewarding members, not penalising consumers. Innovation has been a hallmark
of Discovery's growth, and we intend to stay true to that ethos with Discovery
Insure," he said.
Discovery Insure will offer comprehensive vehicle, personal
and household cover.
Rory Byrne, special engineering adviser to Discovery Insure
who has led the design of Formula 1 cars for 30 years, said: "A good driver
understands their abilities and the capabilities of their vehicle. Slow drivers
are not necessarily good drivers, and vice versa. Gender does not play any role
- good driving is within anyone's grasp."
VitalityDrive is Discovery Insure's incentive programme that
will reward clients for improving their driving. By activating VitalityDrive,
clients get rewards on their BP fuel spend and completing a Tiger Wheel &
Tyre annual multipoint check boosts the fuel rewards. DiscoveryCard holders
will get additional rewards.
Discovery Insure goes live with its product on June 1 2011.
The group now operates in the short-term, health and life insurance, long-term
savings and investments, wellness and credit card markets.
