Discovery and Prudential, the largest insurance provider in the UK, has launched PruProtect, the first integrated, consumer-engaged life insurance company in the United Kingdom as part of a new joint venture.
PruProtect will offer a life plan, serious illness and disability cover and income continuation protection.
The entrepreneurial and highly-regarded Sammy Rubin has been appointed as CEO.
Discovery CEO, Adrian Gore, said that the UKs protection market is 3.5 times larger than the SA protection market and is worth 1bn of new business per year.
"Prudential enjoys about a 10% market share of the UK life industry. We're very excited about the company, given the successful roll-out of our initial joint venture, PruHealth, as well as market research that has shown exciting potential for Discovery's approach to life assurance in the UK protection market. With Prudentials excellent brand credibility and the unique competitive advantage offered by Discoverys product design, we hope to capture a significant share of this market."
Prudential and Discovery have jointly established PruProtection, a UK-based holding company to house two companies PruProtect, the life assurance business and PruHealth, the private medical insurer.
Shaun Matisonn, has been appointed as the CEO of PruProtection, and will stay on in his position as CEO of PruHealth, while Sammy Rubin, as CEO of PruProtect will report to him. Matisonn said that Discovery Life's consumer-engaged model has been successfully tested in South Africa and signs are encouraging that it will prove popular in the UK too.
As one of the UK's leading insurance providers, the partnership with Prudential gives Discovery immediate presence in the UK, he said. In a Brand and Satisfaction Monitor conducted by Millward Brown, Prudential ranked amongst the highest in the UK assurance market and enjoys outstanding brand credibility.
"PruProtect's consumer-engaged approach offers two distinct competitive benefits. Firstly, by engaging policyholders in managing their health through the Vitality wellness programme, PruProtect is able to offer lower premiums. Secondly, it also offers differentiated and more comprehensive benefits. This dual strategy of competitive pricing and value-add at benefit level is the impetus behind PruProtect."
Policyholder's annual premiums will be adjusted to reflect changes in health as measured by Vitality points earned through healthy lifestyle choices. Vitality points entitle policyholders to a range of health and lifestyle rewards, including lower premiums.
A significant Vitality partner base has already been established in the UK that allows members to earn points for exercise, screening, healthy nutrition, not smoking and health education.
Some of these partners include prestigious nationwide health clubs such as Holmes Place and Cannons as well as Sainsburys, one of the UK's leading supermarket chains.
PruProtect CEO, Sammy Rubin, was previously Chief Executive Officer of Policy Portfolio plc, London, where he became the youngest ever managing director of a publicly listed financial services company at age 29. Rubin also led the company's flotation on the London Stock Exchange after building, developing and managing several successful ventures.
Before that, he worked as a business development consultant to BDO Stoy Hayward Wealth Management and holds a Master of Business Administration (MBA) from Middlesex University.
PruProtect's back-office operations will be run out of South Africa, adding to prospects for job creation in the local industry.
Discovery and Prudential have previously partnered to alter the UK's health insurance market.
PruHealth was launched into the UK market in October 2004, as a joint venture between Discovery and UK insurer, Prudential, in response to a growing need for cutting-edge, consumer-directed private medical insurance products.
Since then, PruHealth has grown to cover 130 000 lives. A third of PruHealth's customers are new to private medical insurance in the UK.
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