Targeting individual needs in group risk with SAs leading provider of risk cover

Companies need to look long and hard before deciding on what group risk cover to take out. The traditional forms of cover have offered only a blunt instrument for their clients - typically a lump sum death benefit.

With the rise of new generation forms of life cover becoming more popular in recent years, so companies need to look more closely at value propositions of the cover available to them, says Hylton Kallner, General Manager  for marketing and distribution at Discovery.

Since its beginnings in 2000 Discovery Life has revolutionised the way the market perceives risk cover, and has been able to develop a leading position in the group risk segment, with major take-up among SA's leading corporates. Discovery Life has been rated the best in PriceWaterhouseCoopers annual survey of leading brokers, in the category of group risk.

According to the most recent Swiss Re group premium volume survey, Discovery had the largest market share for new schemes across a number of categories, including the categories lump sum disability, disability income and critical illness.

According to Kallner, cover should look holistically and dynamically at the needs of the employees covered, looking at issues such as lifestyle, debt and education needs of their dependants.

Kallner says Discovery Lifes group risk product range has proved popular with corporates for integrating the health management aspects of Discovery Health and Discovery Vitality with Discovery Lifes suite.

"Where employees are also Discovery Health Medical Scheme members, we have been able to construct an exceptionally stable, predictable, and low risk portfolio. This keeps the cost of cover at affordable levels," argues Kallner.

Kallner says this approach has meant that Discovery Life group risk has been the fastest growing life company in this sector. It recorded 40% annual growth for 2005 (21% being the next highest), and captured 16% of the total severe illness (dread disease) and 31% of the disability market during 2005.

"And the benefits have been real," says Kallner. "We have already funded the education of almost 600 children - ranging from pre-primary school right through to university, a total market API of R6.8 billion for 2005. And through our global education benefit we are in the process of approving the funding of someone at an Ivy League US university."

Kallner says there are other benefits of Discovery Lifes group risk suite of products: insured employees on Vitality can get back up to 10% of their bond repayments on their DiscoveryCards, coverage of Discovery Health premiums on the disability package, and the opportunity to get treatment at top overseas locations through the severe illness benefit.

Additionally, companies signing up for the Discovery's corporate wellness programme, Vitality WellPoint, can get discounts on their group risk cover of up to 30%, depending on the status attained by the company.

Some 700 of South Africas leading corporates have signed up with Discoverys group risk offering, covering over 130 000 employees.

Vitality WellPoint is an integrated wellness programme for corporates that allows them to manage holistically the health of their workforce and improve productivity. It blends together employee assistance, HIV management, absentee management, executive management and ongoing employee wellness assessments into an integrated package. As with Vitality, companies earn rewards for achieving a higher WellPoint status.

"The integration of risk cover with health management truly helps companies increase and improve the health of their employees, while also lowering the cost of cover," says Kallner.