About
Discovery’s Smart products for young adults combine tailored risk protection with a targeted incentive-based behaviour change program (Vitality), helping young adults save a significant amount of money by practicing good driving and health behaviour.
Innovation presentation
Young adults are exposed to particular risks, including significantly higher incidence of car accidents and consequently, a consistently higher mortality and morbidity rate because of behavioral, yet largely controllable causes. In response, Discovery developed intelligently designed products tailored for young adults utilising our unique shared value insurance model to comprehensively protect and reward them.
Responsible Young Adult Insurance, the first product, is a hybrid pay-as-you-drive and traditional comprehensive motor insurance product for drivers under 30 years old. This product aims to:
• Reward and attract safer (daytime) drivers to Discovery Insure, improving the composition of the book.
• Discourage night-time driving (which is far riskier than daytime driving) and therefore reduce loss ratios.
The driver receives an upfront discount on their premium in return for comprehensive daytime driving cover as well 24-hour cover for non-accident perils (theft, hail, etc.). Clients who choose to drive at night have an additional “pay as you drive” premium charged monthly in arrears. Trips taken between 9:30pm and 5am are charged per-kilometer based on the driver’s previous month’s Vitalitydrive status. Uber discounts are offered to provide an affordable alternative mode of night-time transport.
The second product, the Smart Life Plan, offers intelligent insurance for young professionals, giving up to 100% of premiums back for driving safely and leading an active lifestyle through the Vitality Active programme. This unique approach encourages the formation of positive health and good driving habits, thereby helping to eliminate almost all of the mortality and morbidity risk in this age group.
Uniqueness of the project
Unique attributes of the Smart plans include:
• Responsible Young Adult Insurance is the first car insurance product to combine traditional motor insurance and pay-as-you-drive insurance capabilities underpinned by telematics technology within the South African context.
• It can also be viewed as incremental innovation since it combines existing capabilities such as the vanilla insurance product in conjunction with telematics technology (smartphone and sensor technology).
• Smart Life Plan is the first life insurance product that allows clients to get up to 100% of their premiums back by engaging in good driving behaviour, helping to reduce and eliminate almost all of the mortality and morbidity risk in this age group.
• The integration of short and long-term insurance products enhances the business objective of building an insurance programme that promotes safety on South African roads, helping to address the frequency of accidents, specifically the severity of those that occur at night by reducing night time driving.
