Discovery scores on client loyalty | Fin24
 
  • Disposal?

    Sasol may be planning to sell its South African coal-mining operations.

  • National Carrier

    Fixing SAA means overcoming an 'organised crime syndicate', says ex-prosecutions boss Vusi Pikoli.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Discovery scores on client loyalty

Sep 05 2012 14:49
Mzwandile Jacks

Company Data

DISCOVERY LIMITED [JSE:DSY]

Last traded 122
Change -4
% Change -3
Cumulative volume 5968717
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Members want probe into Discovery fee

Members want probe into Discovery fee

Discovery posts R3.4bn operating profit

 
Johannesburg - Policy lapse rates at Discovery Health Medical Scheme, a unit of JSE-listed Discovery Holdings [JSE:DSY], remained low during the year to June, with 98% of members remaining on the same plan or upgrading.

Lapsed rates apply to policies that have not been renewed or cancelled during the policy year.

Adrian Gore, CEO of SA's biggest health insurer Discovery, said lapse rates were at around 3.9% during the period as the division continued to provide the best-in-industry products and services to clients with payment arrangements that facilitated maximum access.

"The lapse rate was remarkably low during the financial year, and not many companies in the world have this low lapse rate," Gore told a gathering of analysts and journalists in Johannesburg.

"Our members have been holding on to their benefits despite the current economic pressures."

Discovery Health's low lapse rate means the company is doing something good - insurance policies are often among the first casualties when households or individuals lose jobs or are forced to start reassessing their budgets when economic pressure bites.

This is in view of the fact that health insurance is viewed as a grudge purchase by many individuals and households.

Since the onset of the global economic downturn in 2007, most health and life insurers have had to grapple with increasing lapse rates.

Liberty, the fourth-biggest life insurer in SA, is among the local companies that have had to wrestle with this in the past few years.
 
Discovery Health’s normalised operating profits for the period surged 10% to R1.5bn. Gore added this division remained acutely aware of its responsibility to contribute to a sustainable national healthcare system involving both the public and the private sector.

"This division continues to engage with national and provincial health departments in support of the emerging national health insurance," Gore said.
 

discovery holdings  |  medical schemes
NEXT ON FIN24X

Cell C now valued at zero

2019-09-19 17:27

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What's your view on deep sea mining?

Previous results · Suggest a vote

Loading...