Dynamic Distance cash back to respond to clients’ new needs during COVID-19

Discovery Insure turns lowered risk into savings for clients

Discovery Insure is dynamically shifting gear to bring unique enhancements to every aspect of their offering, while tapping into new markets.

Discovery Insure provides comprehensive and market-leading cover that offers value during constrained economic times.

Presenting the Discovery Insure product updates to financial advisers, Discovery Insure Chief Executive Officer, Anton Ossip says, “The entire product and service offering is underpinned by our Shared-value Insurance model and cutting-edge technology, enabling the most flexible and innovative solutions for the public. Products and services are frequently enhanced to suit different lifestyles and the world we live in.”

How is the business levelling up on their product and service offering? Vitality Drive and its Active Rewards offer increased value for clients. Equally as exciting, is an innovative approach to bring warranty cover to all clients and new monthly cash back during the COVID-19 lockdown.

Dynamic Distance cash back

“The recent COVID-19 pandemic lockdown requirements showed that our clients are driving far less than usual. The less people drive, the lower their risks are for having accidents. Our clients’ lowered risk also meant a reduction in our loss ratio. Using our Shared-value Insurance model, we are able to turn these savings from our clients’ lowered risk into rewards,” explains Discovery Insure CEO, Anton Ossip.

He says, “Now, our clients can earn 25% motor premium cash back every month, when they drive between 0km and 249km, or 15% cash back if they drive between 250km and 499 km. They can still earn up to 50% fuel cash back when they drive more.
“So, whether our Vitality Drive clients drive more and spend more on fuel or drive less and spend less on fuel, they can all still earn cash back for good driving behaviour through a combination of our usual Vitality Drive fuel cash back and our newly introduced Dynamic Distance cash back.”

Vitality Drive has been redesigned to be more engaging, rewarding and personalised for clients

Points which can be accrued for good driving behaviour in the Vitality Drive programme have been increased. “To date, drivers could earn up to 550 points for their daily controllable driving behaviours including acceleration, braking, cornering, speeding and cellphone use. Now, clients have the opportunity to accumulate up to 750 Vitality Drive points in a month for these controllable behaviours,” says Ossip.

Each day Vitality Drive clients will be allocated 25 Drive points. Based on the behavioural economics principle of loss aversion, as a means of encouraging improved engagement, clients will need to maintain good driving behaviour throughout the day as poor driving behaviour will result in points being deducted.

“At the end of each day, the remaining Drive points are banked towards the client’s weekly Active Rewards drive ring to help them reach their weekly goal. This daily Drive points balance also adds towards the client’s monthly Driving Profile (up to 750 points), which contributes to the client’s total monthly Vitality Drive points. This score is used to calculate their fuel cash back (of up to R800) every month.” says Ossip.

“We have also enhanced our weekly Active Rewards drive goal to give clients a more personalised experience. This means the Active Rewards drive goal each week is based on a client’s driving behaviour and not on the number of kilometres they have driven as it previously did. With this new structure, the more consistent a person drives, the more points they can bank. When their weekly goals are achieved, Vitality Drive clients will instantly earn 100 Discovery Miles and a play on the game board to reveal additional Discovery Miles he explains further.

Vitality Drive offers further value to clients who are 65+ when they need it most

Older adults also stand to benefit from the Vitality Drive programme more. Adults between the ages of 65 and 80, can earn up to 50% motor premium PayBacks every year. Driving well and less than 10,000km a year, combined with completing an annual Vitality Health Check for 65+ will help them qualify to save up to 50% of their premiums during retirement. They will also have access to Vitality Active Rewards, Vitality status-based rewards and up to 50% cash back on fuel making their insurance truly affordable.

Telematics-based warranty cover with an affordable risk-rated premium and rewards for good driving

“Vehicle insurance doesn’t typically cover things like mechanical breakdowns or electrical failure. A warranty plan normally provides this cover when a new vehicle is purchased. Standard warranty plans provide cover for around four years or up to 48 000km. However, we know that most South Africans now keep their vehicles for longer and this is expected to increase under the current economic downturn. Since cars are being kept longer, there is a greater need for electrical and mechanical maintenance with a higher proportion of cars not covered under warranty as the manufacturer warranty has expired. With our new benefit, we’ll be offering our clients a first-of-its-kind telematics-based warranty cover that offers one solution to meet a vehicle owner’s actual needs,” says Ossip.

Discovery Insure introduces its brand new warranty product to offer market-leading, unlimited mechanical breakdown and electrical failure cover for 36 critical vehicle components. We have used the sophistication of our of risk-rated premium structure to ensure that clients pay a premium appropriate to their risk.

“We saw an opportunity to provide a warranty solution that meets the true needs of the current market. This way we provide cover that can help to avoid unaffordable and unexpected costs,” explains Ossip.

Using our expertise from our Vitality Drive programme, we have extended our driver-behaviour programme to the warranty market to offer the first telematics-based warranty cover. Vitality Drive clients can earn up to 100% off their yearly servicing and maintenance costs for driving well.

“We’re proud to be able to offer all our clients enhanced value that can quickly adapt to the times and to changing needs. We’ll continue to make use of innovative technology for this purpose,” Ossip concludes.