Slide 1: Product updates
g Discovery Product updates 20 MAY 2020
Slide 2: Countries around the world are working to flatten the curve
CONFIDENTIAL Countries around the world are working to “flatten the curve” Cumulative number of infections No. 1 490 195 500000 4.7m infections globally 450000 (up from 3.9m a week ago) 400000 350000 c2% compound daily 300000 281 752 growth rate globally; 241 080 244 995 down from 5.4% over past 8 2
Slide 3: South Africa's swift response to COVID-19 globally recognised
SOUTH AFRICA’S SWIFT RESPONSE TO THE COVID-19 PANDEMIC HAS BEEN GLOBALLY RECOGNISED 3
Slide 4: Lockdowns are effective; transmission rates decrease after lockdown
Lockdowns are effective; transmission rates decrease significantly after the lockdown SOUTH AFRICA’S REPRODUCTION RATE DHMS’S REPRODUCTION RATE Rt for DHMS 4
Slide 5: Mass testing is underway with significant improvements
Nationally, mass testing is underway and although results lag exists, there have been significant improvements CHANGE IN FOCUS TO MASS TESTING IN SA SIGNIFICANT DECREASE IN TESTING RESULTS LAG Cumulative tests Pathology testing lag in days 460,873 Same day 1-2 3-4 5-6 7-8 9-10 >10 15-Mar 22-Mar 29-M
Slide 6: South Africa is still in the early stage of the epidemic
However, South Africa is still in the early stage of the epidemic Weekly testing rates Case prevalence No. of tests per 100,000 population (No. of infections per 100,000 population) 6.500 Denmark 186 “Ahead of the 483 6.000 Portugal epidemic” High testing rates, 5.500 Israel 472 Belgium low positive
Slide 7: Western Cape has the highest positive rate
Western Cape has the highest positive rate at 9.9% Tests Testing rate Positive test rate Province No. No. of tests per 100,000 population % positive tests Gauteng 139,772 920 1.7% Western Cape 94,275 1,386 9.9% KZN 93,488 827 1.7% Free State 24,264 837 0.7% Mpumalanga 28,781 626 0.2% Limpopo 23,755
Slide 8: SEIR model projections by scenario
Scenario-based SEIR model projections based on reproduction rates, lockdown period and % of asymptomatic cases SEIR MODEL “STATES” SOURCE: ACTUARIAL SOCIETY OF SOUTH AFRICA Scenario 1 Scenario 2 100% 70 100% R0: 3.00 R0: 2.60 Millions Susceptible: never been 90% R0 during lockdown: 90% R0 during loc
Slide 9: Comparison of pandemics
Comparison of pandemics Mortality rates by age SPANISH FLU SARS SARS MERS MERS COVID-19 60% 60% 60% 60% 50% 50% 50% 50% 40% 40% 40% 40% 30% 30% 30% 30% 20% 20% 20% 20% 10% 10% 10% 10% 0% 0% 0% 0% 0-24 25-44 45-64 65+ 60+ 0-14 15-29 30-44 45-59 10 20 30 40 50 60 70 80+ 10-19 20-29 30-39 40-49 50-59 6
Slide 10: What is needed until vaccine or herd immunity
What is needed until vaccine/anti-viral is available or herd immunity is reached? Ensure social distancing is well understood and adhered to throughout the country Rapidly scale up testing capacity and focus testing on hotspots and on vulnerable groups etc Implement effective contact tracing with fo
Slide 11: Preparing for a post-COVID world
PREPARING FOR A POST-COVID WORLD “I” vs. “We” Purpose Rush to online Healthcare, physical activity Resilience, wellness Healthy ageing and health Trade off between health Shared-Value and the economy 11
Slide 12: Trends shaping the global environment
Trends shaping the global environment Behavioural Wearable economics devices Life & Health insurance 4 4 60 Asset management Long-term savings 3 3 90 Telematics Motor insurance 5 3 60 Mobile banking Purpose Moral Money Increased corporate accountability Environmental crises and risk 12
Slide 13: Trends are amplified by COVID-19
Trends are amplified by COVID-19 Behavioural Wearable economics devices Life & Immunity and resilience Health insurance 4 4 60 Asset Physical | Digital management Long-term savings 3 3 90 Gym | Home workout videos Telematics Social distancing, hand Motor insurance 5 3 60 Parkrun | Virtual events was
Slide 14: The evolution of purpose
The evolution of purpose 4 Post Covid-19, businesses are expected to: Shared Value Demonstrate shared value creation less 3 • “It’s an opportunistically, but more so as a moral ESG imperative and license to operate opportunity “ 2 • Reconceive business models to create “Let’s solve CSR the problem”
Slide 15: The nature of risk has changed
The nature of risk has changed The understanding of behaviour has become crucial Life & Health 4 4 insurance Lifestyle behaviours Chronic conditions Deaths worldwide Long term savings 5 Driving 3 Driving Fatal behaviours conditions accidents Motor 3 3 insurance Controllable behaviours Conditions Ina
Slide 16: Wearables and the quantified self
Wearables and the Atomization of Ongoing contactless Virtual quantified self workplaces operations entertainment Integrated New ways of Reliable digital Contact tracing platforms reaching society experiences 16
Slide 17: Shared Value can transform insurance markets
Shared Value is consistent with global trends and has the power to transform insurance markets Institution Value Incentive ∆ Behaviour Bent (qx) Value = × × × Member Member Incentive ∆ Behaviour Bent (qx) Shared- Vitality Make people Programs Product Value chassis healthier 17
Slide 18: Overview: product and benefit updates
OVERVIEW | PRODUCT AND BENEFIT UPDATES Employee Health Life Invest Insure Bank Benefits + + COVID benefits Integrated Vitality Drive Vitality Corporate benefits Double Vitality premium for Seniors Money 2.0 paybacks leveler Drive LEGACYFUND COVID benefits Screening Access to GP Up to 40% Dynamic Val
Slide 19: Overview: product and benefit updates
OVERVIEW | PRODUCT AND BENEFIT UPDATES Employee Health Life Invest Insure Bank Benefits + + COVID benefits Integrated Vitality Drive Vitality Corporate benefits Double Vitality premium for Seniors Money 2.0 paybacks leveler Drive LEGACYFUND COVID benefits Screening Access to GP Up to 40% Dynamic Val
Slide 20: Bank OS update: Vitality Money 2.0
Bank OS update Vitality Money 2.0 Integration and Adviser remuneration 20
Slide 21: Meaningful support for our clients through COVID-19
Meaningful support for our clients through COVID-19 Average credit card spend -50% Up to 100% back Up to 75% back 1 Discovery Mile for on HealthyFood on HealthyCare and every Vitality Exercise Healthy Gear point earned ±0% Spend levels were maximized when calculating rewards Pre covid Lockdown Donat
Slide 22: Market leading deposit rates for the financially healthy
Market leading deposit rates for the financially healthy Demand savings rates are up to 2.5x market average Attracting financially healthy clients ~24 x 2.5 X 2 833 1.8 X 5.50 % 5.07 % 4.50 % 4.25 % 4.00 % 2.21 % 100 Industry Blue Bronze Silver Gold + Blue Bronze Silver Gold Diamond average Diamond
Slide 23: Additional features in Bank OS 2.0
Additional features in Bank OS 2.0 Certified Bank statements Calculate your Vitality on your phone Money status before joining Add and control credit in Submit documents on the seconds web New feature alerts on your Explore the bank including homescreen info and tips 23
Slide 24: Vision for Discovery Miles and Discovery Bank
Vision for Discovery Miles and Discovery Bank Employee Health Life Invest Insure Bank Benefits Health I Drive I Money 24
Slide 25: Discovery Miles 2.0 example
Discovery Miles 2.0 example Discovery Miles for purchases Monetise and exchange for cash at =D10 to R1 62% back on R2 000 HealthyFood Donate to Solidarity Fund and 43% back on R1 000 HealthyCare Discovery will match 43% back on running shoes Up to 15% off airtime and = = electricity purchases 3 Vita
Slide 26: Purple Wealth clients
PURPLE WEALTH CLIENTS R600k R1m R2m R3m OFF HOME OFFICE, HOME ENTERTAINMENT off off off off AND HOME GYM up to R25k up to R30k up to R50k up to R100k TECHNOLOGY R600k R1m R2m R3m off off off off up to R50k up to R60k up to R100k up to R150k 26
Slide 27: Integration with Bank across Discovery businesses
Integration with Bank across Discovery businesses HEALTH DISCOVERY LIFE BANKING INTEGRATOR INTEGRATOR Seamless medical DHMS clients with Up to 15% discount on co-payments at over 5 000 Discovery Bank get up to Life premiums service providers 5 000 27
Slide 28: Earn up to R3 500 with a Discovery Life Bank integrator
Earn up to R3 500 for a Discovery Bank account with a Discovery Life Bank integrator Vitality Money boost for Credit Card accounts on Diamond status up to Requirements Life policy with Bank Integrator Client’s bank account opened and card activated Client must be the principal insured and you regist
Slide 29: Bank OS update: Integration and adviser remuneration
Bank OS update Vitality Money 2.0 Integration and Adviser remuneration 29
Slide 30: Discovery Health
Discovery Health DR. RYAN NOACH
Slide 31: Discovery Health Medical Scheme
Discovery Health Medical Scheme MEMBERSHIP FINANCIAL STRENGTH Market share1 Credit rating Unaudited solvency as at Sep 2019 Unaudited reserves 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2015 2016 2017 2018 20
Slide 32: Impact of COVID-19 on Discovery Health administered schemes
Impact of COVID-19 on Discovery Health administered schemes COVID-19 CONFIRMED CASES | 1 733 | 18 MAY Confirmed cases by province Tests conducted Tested positive 6 48 851 1 733 576 14 15 27 10 209 COVID-19 admissions Deaths 412 37 51 824 32
Slide 33: Discovery Health COVID-19 member demographics
Discovery Health COVID-19 member demographics COVID-19 CASES DISTRIBUTION BY AGE AND CHRONICITY PREVALENCE BY PROVINCE 11% of confirmed cases in South Africa are 36% of confirmed DH cases are chronic members WCP is a clear outlier with a prevalence rate of 126 under Discovery Health administration p
Slide 34: 23.7% of COVID-19 cases admitted to hospital
23.7% of COVID-19 cases admitted to hospital | 4.6% of infections require ICU THE AVERAGE COST PER EVENT IS ADMISSION METRICS PROPORTION ADMITTED BY AGE R84 658 Key indicators COVID-19 risk cost per Proportion admitted event by level of acuity during admission By age band 60 65% 70% Admissions 412 5
Slide 35: Emerging predictive model for admission risk
Discovery’s emerging predictive model for admission risk Inputs INPUTS DATA PROCESSING TOP CONTRIBUTING FACTORS TO COVID-19 ADMISSION RISK Age 0.28 METHODOLOGY Age Patient Complexity 0.24 Gender VEM 0.18 Patient Complexity Hypertension 0.05 Chronic conditions XGBOOST Hypercholesterolaemia 0.
Slide 36: Predictive model: relative risk output
Discovery’s emerging predictive model for admission risk Admission risk relative to a 40-49 year old male, with Vitality Engagement Measure of Zero (No physical activity) Increased physical activity can mitigate some of the Increasing physical activity reduces admission risk from advanced age, and c
Slide 37: Access for members to risk assessment and testing
Access for all members to appropriate risk assessment and testing MEMBER IS REFERRED TO A MEMBER UNDERTAKES MEMBER UNDERTAKES HEALTHCARE PROFESSIONAL COVID-19 RISK ASSESSMENT A COVID-19 TEST FOR SCREENING 1 2 3 Captures and stores Ranks risk index Virtual Face-to-face For For healthcare testing hist
Slide 38: Understanding risk categories for COVID-19 complications
Understanding risk categories for developing COVID-19 complications MEMBERS MAY NOT UNDERSTAND THEIR MEMBERS THAT ARE AT-RISK MAY BE AT-RISK MEMBERS COULD DEVELOP HEALTH RISKS RATIONING CARE SLIENT HYPOXIA ELEVATED BIOMETRIC RISKS LEADING CORONAVIRUS FEARS ARE KEEPING COVID-19 PNEUMONIA PATIENTS IND
Slide 39: Support for members at risk of complications
Support for members who are at risk of developing complications MEMBERS MAY NOT UNDERSTAND MEMBERS THAT ARE AT-RISK MAY AT-RISK MEMBERS COULD THEIR HEALTH RISKS BE RATIONING CARE DEVELOP SILENT HYPOXIA FOR MEMBERS WHO COMPLETE A ACTIVE IDENTIFICATION AND FUNDING OF PULSE OXIMETERS HEALTH CHECK AND D
Slide 40: DHMS well placed to withstand COVID-19 costs
Discovery Health Medical Scheme is well placed to withstand COVID-19 related costs DHMS IS SUFFICENTLY CAPITALISED TO COVER MEDICAL SCHEMES PROJECTED TO POTENTIALLY COVID-19 RELATED COSTS INCUR SIGNIFICANT COVID-19 RELATED COSTS 25,000 Projected COVID-19 screening and testing costs across all medica
Slide 41: Vitality
g Discovery Vitality DINESH GOVENDER
Slide 42: Vitality has become more relevant than ever
VITALITY HAS BECOME MORE RELEVANT THAN EVER BEFORE Healthy living reduces the risk Engaged Vitality members adapt their behaviour of COVID-19 related illness to stay healthy despite lifestyle changes -11% lower COVID-19 related risk Engaged Vitality Engaged Vitality members members during 100% pre-l
Slide 43: Keeping healthy living accessible
KEEPING HEALTHY LIVING ACCESSIBLE Vitality 1 1 Vitality At Home Members Members cancan access access physical and online physical and online Vitality partners and Vitality partners and rewards rewards 2 2 Access and rewards are dynamic Access and rewards are dynamic basedonon based changing changing
Slide 44: Stay healthy at home
STAY HEALTHY AT HOME Vitality Home Workout channel Manage and screen for health risks Receive recommended pathways for Virtual race events improving health and wellness Vitality Earn 2500 points Home Cooking channel Unlock Vitality Health Check benefits Mental Wellbeing Assessments BOOKINGS OPEN 1 J
Slide 45: Get rewarded at home
GET REWARDED AT HOME Up to 50% off HealthyFood Up to 50% off HealthyGear Up to 50% off HealthyCare Up to 100% off Devices Up to 50% off Technogym rentals 45
Slide 46: Discovery Miles go further on Active Rewards
GET REWARDED AT HOME: DISCOVERY MILES GO FURTHER ON ACTIVE REWARDS Example R500 voucher = 3750 Instead of 5000 25% Diamond for a Diamond client R100 voucher = 850 Instead of 1000 Woolwort 20% Gold R100 voucher for hs Woolworths for a Silver client 750 1000 Woolwort R500 voucher for hs Woolworths 375
Slide 47: Vitality at home
VITALITY Virtual Vitality Home Health Cooking Check-ins Channel AT HOME Home Workout Channel NEW Up to 50% back NEW Up to 25% off Up to Up to 50% back ENHANCED ENHANCED 100% back Up to Up to 35% ENHANCED ENHANCED 50% Up to back back 50% back ENHANCED 47
Slide 48: Tailored offering for highest risk members
TAILORED OFFERING FOR HIGHEST RISK MEMBERS Increasing risk of hospitalisation 125% 1 119% 106% 100% Face elevated and Higher mortality unique health risks risk <40 40-60 60-69 70+ 2 Reduced risk Risks faced are with healthy modifiable in nature living 123% 65+ Gold and Diamond 115% members experienc
Slide 49: Introducing Vitality 65+
INTRODUCING VITALITY 65+ End-to-end enhanced screening journey for Boosted incentives to drive engagement key health risks Safe access to Healthy Living Enhanced screening for health with Apple Watch for 65+ and risks Vitality At Home Comprehensive health risk Lowered requirements to management with
Slide 50: End-to-end enhanced screening journey
END-TO-END ENHANCED SCREENING JOURNEY 8 part assessment Adjusted biometric tests Pre-screening assessments Comprehensive risk reporting New referral pathways Preventative vaccines 50
Slide 51: Get rewarded: boosted rewards
GET REWARDED | BOOSTED REWARDS Unlimited points for fewer steps Points for lower intensity workouts Woolworths R150 voucher for Woolworths Food Dis-Chem R150 voucher for Dis-Chem Clicks R150 voucher for Clicks 51
Slide 52: Vitality 65+ COVID-19 benefits
VITALITY 65+ | COVID-19 BENEFITS Access age-appropriate NO ACTIVATION FEE ON THE workouts on the APPLE WATCH FOR 65+ BENEFIT Home Workout channel Record workouts to meet weekly goals Participate in virtual race events Detect falls and alert emergency Virtual Vitality Health Check-in services and pre
Slide 53: Summary: Vitality updates
SUMMARY : VITALITY UPDATES At Home 65+ 53
Slide 54: Discovery Life
Discovery Life GARETH FRIEDLANDER
Slide 55: Broadest suite of products for every life stage
BROADEST SUITE OF PRODUCTS TO CATER FOR EVERY LIFE STAGE 65+
Slide 56: Broadest suite of products for every life stage
BROADEST SUITE OF PRODUCTS TO CATER FOR EVERY LIFE STAGE 65+ 50% Retail affluent market share >R6.8 billion Mortality claims Lapse rate by # of products - 45% - 70% 29% 31% 31% 26% Discovery PayBacks paid to date Top 5 major 0% competitors Discovery None/Blue Bronze/Silver Gold/Diamond
Slide 57: Leveraging shared-value assets in COVID-19 response
Leveraging Shared-value assets in our COVID-19 response Enabling full immediate Premium relief with Delivering on our cover through flexible full cover claims promise underwriting 65+ Introduction of four market leading Streamlined underwriting processes: Clients have full cover for COVID-19 options
Slide 58: 2020 launch objectives
2020 LAUNCH OBJECTIVES 1 Maximising Shared Value 2 Enhancing value and sustainability 3 Comprehensive and relevant cover 4 Bespoke solutions for businesses in light pre-retirement in retirement of unique challenges 65+
Slide 59: 2020 launch objectives
2020 LAUNCH OBJECTIVES 1 Maximising Shared Value 2 Enhancing value and sustainability 3 Comprehensive and relevant cover 4 Bespoke solutions for businesses in light pre-retirement in retirement of unique challenges 65+
Slide 60: The science of shared-value
THE SCIENCE OF Persistency SHARED-VALUE Mortality gain Traditional insurer baseline
Slide 61: Persistency
Persistency Up to PayBack Traditional insurer baseline
Slide 62: Introducing Double PayBack
Up to PayBack Up to PayBack - INTRODUCING - x2 Persistency x2 x2 x2 Up to 100% of your qualifying Traditional premiums back insurer baseline
Slide 63: Enhancing shared-value returned through PayBacks
Enhancing the Shared-value returned to clients through PayBacks Traditional PayBack up to
Slide 64: Double PayBack
Enhancing the Shared-value returned to clients through PayBacks DOUBLE PayBack up to PayBack Traditional PayBack up to Select when you would like to receive your PayBack
Slide 65: Return on PayBack by health claims band
Enhancing the Shared-value returned to clients through PayBacks Health Claims Band Blue Bronze Silver Gold Diamond Return on 1 40% 55% 70% 85% 100% Payback 2 3 4 5 6 7 Select when you would like to receive your PayBack
Slide 66: PayBack flexibility
Enhancing the Shared-value returned to clients through PayBacks Flexibility to change your option Select when you would like to receive your PayBack
Slide 67: 2020 launch objectives
2020 LAUNCH OBJECTIVES 1 Maximising Shared Value 2 Enhancing value and sustainability 3 Comprehensive and relevant cover 4 Bespoke solutions for businesses in light pre-retirement in retirement of unique challenges 65+
Slide 68: Enhancing value and sustainability in retirement
ENHANCING VALUE & SUSTAINABILITY IN RETIREMENT Clients are Clients are more at risk Reduced affordability living longer in retirement in retirement Discovery’s Gold and Diamond The chances of suffering a The average client purchasing life Vitality status members have life-changing event are insuranc
Slide 69: Enhancing value and sustainability in retirement
ENHANCING VALUE & SUSTAINABILITY IN RETIREMENT Mortality (qx ) Insurance premiums Working age Retirement age
Slide 70: Enhancing value and sustainability in retirement
ENHANCING VALUE & SUSTAINABILITY IN RETIREMENT Income 20% Insurance premiums 13% 9% 80 % of income spent 6% 75 on insurance 70 65 Working age Retirement age *Assumptions: 40 year old with average premium and salary, age based funding pattern, CPI of 5%, salary increasing by CPI + 2% pre-retirement a
Slide 71: Transforming shared value and sustainability in retirement
TRANSFORMING SHARED VALUE & SUSTAINABILITY IN RETIREMENT Vitality Rating Longevity Discount Up to VHC 65+ 40% Up to 10% Vitality Premium Leveller Working age Retirement age
Slide 72: Extending integration to older ages
EXTENDING INTEGRATION TO OLDER AGES Core Comprehensive M A R K E T C O M PA R I S O N Market average Integrator Integrator Maximum entry age 70 -› 75 65 -› 70 −10% › Discounts of −25% Integration › Discounts of up to 42% −33% benefits up to 23% › PayBack of 65 70 75 up to 100%
Slide 73: 2020 launch objectives
2020 LAUNCH OBJECTIVES 1 Maximising Shared Value 2 Enhancing value and sustainability 3 Comprehensive and relevant cover 4 Bespoke solutions for businesses in light pre-retirement in retirement of unique challenges 65+
Slide 74: 2020 launch objectives: comprehensive and relevant cover
2020 LAUNCH OBJECTIVES 3 Comprehensive and relevant cover 65+ CHANGING NEEDS IN RETIREMENT COVID19 Debt & Income Illness & Wealth Transfer
Slide 75: COVID-19 is a multi-organ virus
It has become clear that COVID-19 is a multi-organ virus COVID-19 often has acute multi-organ complications Respiratory system Renal system 100% 29% Cardiac system Liver 23% 29% *Top disease chapters of suspected COVID-19 cases across all DH administered schemes, using the latest pathology, claims a
Slide 76: Siloed approach results in gap in coverage
Current siloed approach results in gap in coverage Limitations of traditional severe illness products Heart and Nervous Acute Kidneys Respiratory multi-organ artery System NEW MARKET FIRST Multi-organ benefit
Slide 77: Multi-organ benefit
Multi-organ cover for acute conditions, MULTI- up to age 65 Tiered severity payments of 50% – 100% ORGAN Only product providing specific cover for BENEFIT COVID-19 Automatically included on all new severe illness benefits from 25 May 2020, subject to underwriting.
Slide 78: Medical AccessCover
MEDICAL ACCESSCOVER™ Ability to convert life cover into immediate cash after a life-changing event. AccessCoverTM category A B C D E F G H Conversion Rate 70c 65c 60c 50c 45c 40c 30c 20c N O W AVA I L A B L E U N T I L T H E A G E O F 80
Slide 79: Exclusive benefits on a Purple Life Plan
EXCLUSIVE BENEFITS ON A PURPLE LIFE PLAN VITALITY FUND DOLLAR SWAP ENHANCED CANCER EXOME INCREASED OPTION GLOBAL TREATMENT SEQUENCING INTEGRATED BENEFIT BENEFIT COVER LIMITS
Slide 80: The Legacy Fund
THE LEGACY VITALITY FUND VITALITY & LEGACYFUND FUND DOLLAR SWAP ENHANCED CANCER EXOME INCREASED OPTION GLOBAL TREATMENT SEQUENCING INTEGRATED BENEFIT BENEFIT COVER LIMITS FUND UP TO 40% ADDITIONAL LIFE COVER IN RETIREMENT, AT NO The Legacy Fund ADDITIONAL PREMIUM AND Vitality Fund: + FREE OF UNDERWR
Slide 81: 2020 launch objectives
2020 LAUNCH OBJECTIVES 1 Maximising Shared Value 2 Enhancing value and sustainability 3 Comprehensive and relevant cover 4 Bespoke solutions for businesses in light pre-retirement in retirement of unique challenges 65+
Slide 82: New Business Life Plan
NEW BUSINESS LIFE RRAN NESS BuePLAN
Slide 83: New Business Life Plan
Simplified Integration structure and 01 enhanced rewards for healthy behaviour NEW BUSINESS 02 Enhanced insurability for fast-growing businesses LIFE PLAN 03 Appropriate term for each assurance need 04 Lowest premium per rand of cover 05 Seamless and efficient buy and sell process
Slide 84: Simplified integration structure and enhanced rewards
SIMPLIFIED INTEGRATION STRUCTURE AND ENHANCED 01 REWARDS FOR HEALTHY BEHAVIOUR COVER OPTIONS DISCOUNTS PAYBACK Vitality Status Health Blue Bronze Silver Gold Diamond claims Life Cover Upfront discount of Band 1 20% 22.5% 30% 40% OR Band 2 15% 17.5% PayBack 25% every40%5 32.5% on all years, Band 3 15
Slide 85: The Business Vitality Fund
02 ENHANCED INSURABILITY FOR FAST-GROWING BUSINESSES THE BUSINESS Guaranteed insurability to protect the value of fast-growing businesses VITALITY FUND Cover purchased at a 20% additional cover discount of up to 15% Cover purchased at a discount of up to 20% additional cover 15% 20% additional cover
Slide 86: Introducing Business Term Assurance to 65
03 APPROPRIATE TERM FOR EACH ASSURANCE NEED INTRODUCING BUSINESS TERM ASSURANCE TO 65 INTEGRATION PAYBACKS VITALITY FUND 20% additional cover Life & Disability cover Integrator discounts of PayBacks of up to 35% 20% additional Life & up to 37% Disability cover for 3 years
Slide 87: Market premium comparison
04 LOWEST PREMIUM PER RAND OF COVER MARKET PREMIUM COMPARISON including including highest PayBacks guaranteed Term to 65 Whole-of-life Life cover only 41% 31% - 23% 48% 29% - 21% Life Cover & Disability 50% 41% - 34% 54% 37% - 30% BusinessLife Business Life Plan with Business LifePlan Planwith Avera
Slide 88: Get a buy-and-sell agreement in 60 seconds
05 SEAMLESS AND EFFICIENT BUY AND SELL PROCESS GET A BUY-AND-SELL AGREEMENT IN 60 SECONDS Set up a company profile including Automatically split premiums and Digitally sign and 01 all the business owners 03 summarise the business cover 05 submit business Automatically populate and Automatically gene
Slide 89: 2020 updates
2020 UPDATES 1 Maximising Shared Value 2 Enhancing value and sustainability 3 Comprehensive and relevant cover 4 Bespoke solutions for business in light pre-retirement in retirement of unique challenges Vitality Rating MULTI ORGAN DOUBLE PayBack Longevity Discount BENEFIT Up to 10% discount up to Pa
Slide 90: Discovery Invest
Discovery Invest KENNY RABSON
Slide 91: Our successful shared value platform
Our successful shared value platform Accrued in shared value assets DISCOVERY INVEST HIGHER FUND VALUES +139% fund value in retirement with an average DRO LOWER FEES 81.6% of lump-sum retirement clients paying effectively negative admin fees HIGHER RETURNS OPTIMAL PRODUCTS & STRUCTURES UNIQUE REWARD
Slide 92: Resilient business model despite challenging environment
Resilient business model evident in high new business and low lapses despite challenging environment DISCOVERY INVEST Significantly higher new business levels than the same time last year 2020 new business as a percentage of new business that month in 2019 124% 132% 120% 103% January February March
Slide 93: Better investment outcomes for our clients
Better investment outcomes for our clients Our business model enables clients to close their retirement gaps HEALTH INVESTMENT BOOSTS INCENTIVES BEHAVIOUR CHANGE OUTPERFORMANCE 50% 55% 85% 95% 105% Replacement ratio Average client Discovery Balanced 2.9 years longer The boosts drive Additional growt
Slide 94: Extending the shared value model to global investments
EXTENDING THE SHARED DISCOVERY INVEST VALUE MODEL TO GLOBAL INVESTMENTS OPTIMAL PRODUCTS & STRUCTURES UNIQUE REWARDS & INCENTIVES
Slide 95: The rationale for global investing
The rationale for global investing DIVERSIFYING CURRENCY EXPOSURE
Slide 96: Rand's vulnerability to global market turmoil
The pandemic highlighted the rand’s vulnerability to global market turmoil ZAR/USD Saudi Arabia initiates an Moody’s oil price war with Russia downgrades SA to junk 18 17.5 China alerts WHO to several cases of unusual pneumonia in Wuhan 17 WHO declares a 16.5 global public health emergency. 16 Presi
Slide 97: The rationale for global investing
The rationale for global investing DIVERSIFYING CURRENCY EXPOSURE ACCESS TO OPPORTUNITIES
Slide 98: Sectors South African investors have little exposure to
Sectors that South African investors have little or no exposure to: VEHICLE TECH UTILITIES HEALTHCARE ENERGY MANUFACTURING Outperformed Virus research Renewable energy a Tesla up over 170% 20% of S&P 500 companies primed strong secular growth S&P500 by 10% over over 1 year3 the last year1 for growth
Slide 99: The rationale for global investing
The rationale for global investing DIVERSIFYING CURRENCY EXPOSURE ACCESS TO OPPORTUNITIES GEOGRAPHICAL DIVERSIFICATION
Slide 100: A world of investment opportunities
A world of investment opportunities Access to different economies SA investment market constitutes S&P sovereign ratings around the world very small portion of global AAA AAA AA-AA+ BBB- AA+ AA 108 AAA AAA AA- A+A-~A B B- A-~A BBB- B- times AAA B+ BBB BB A+ $ 50.3 B- BBB+ BBB- B A-~ABB+ BBB- BB- tri
Slide 101: Current international investment offering
Current international investment offering A Dollar DRO that The only dollar A global Flex with a Introducing the allows you to save recurring suite of new Global for your Endowment in international Endowment… retirement in USD the market investment options and convert your dollar life cover ? into c
Slide 102: Accessing exchange rates below the market
DISCOVERY INVEST ACCESSING EXCHANGE RATES BELOW THE MARKET OPTIMAL PRODUCTS & STRUCTURES UNIQUE REWARDS & INCENTIVES
Slide 103: Buy in below the prevailing exchange rate with Global Endowment
Buy in below the prevailing exchange rate on qualifying investment choices with the Global Endowment Market rate: ZAR/USD 18 R18.66 16 Currency enhancer rate: R17.36 18.66 17.36 14 23.34 21.71 12 10 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 20.41 18.99 MUST REMAIN INVESTED FOR 10 YEARS.
Slide 104: Secured associations with leading asset managers
DISCOVERY INVEST SECURED ASSOCIATIONS WITH LEADING ASSET MANAGERS OPTIMAL PRODUCTS & STRUCTURES UNIQUE REWARDS & INCENTIVES
Slide 105: The Discovery Global Portfolios
The Discovery Global Portfolios DISCOVERY $ DISCOVERY DISCOVERY $ CONSERVATIVE MODERATE GROWTH PORTFOLIO PORTFOLIO PORTFOLIO One of the largest asset managers in the world. Asset allocation Asset allocation Asset allocation $ USD 6.74 trillion 13,000 Assets under Investment management professionals
Slide 106: The Discovery Global Share Portfolios
The Discovery Global Share Portfolios DISCOVERY DISCOVERY DISCOVERY GLOBAL GROWTH GLOBAL MILLENNIAL GLOBAL INCOME SHARE PORTFOLIO SHARE PORTFOLIO SHARE PORTFOLIO $ USD 1.67 trillion Assets under management 38 Countries in which they have offices 25-40 high emphasis on fundamentally … that service hi
Slide 107: Wide range of external asset managers
DISCOVERY INVEST WIDE RANGE OF EXTERNAL ASSET MANAGERS 400 investment choices OPTIMAL PRODUCTS & STRUCTURES UNIQUE REWARDS & INCENTIVES
Slide 108: Curated list of top investment options via Allfunds
A curated list of top investment options via Allfunds A rigorous research process by experienced analysts from around the world STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 PEER GROUP QUANTITATIVE QUALITATIVE APPROVAL GLOBAL ALPHA CONSTRUCTION SCREENING SCREENING PROCESS INVESTMENT CHOICES INVESTMENT CHOICES
Slide 109: New investment analysis tool
A dynamic, intuitive, state-of-the art new investment analysis tool with which to compare these choices Customisable quick- search Investment Comparefunctionality thechoice- features specific of up toinformation 4 investment Create and performance choices andintrack an easy, your own analytics flexi
Slide 110: The first Invest International structured product
THE FIRST INVEST DISCOVERY INVEST INTERNATIONAL STRUCTURED PRODUCT DOLLAR CAPITAL 50:50 PLUS OPTIMAL PRODUCTS & STRUCTURES UNIQUE REWARDS & INCENTIVES
Slide 111: Introducing the Discovery Dollar Capital 50:50 Plus
Introducing the Discovery Dollar Capital 50:50 Plus BLEND OF 20 EUROPEAN & US STOCKS CLIENTS CAN GET 50 % in USD gross return after 5 years IF UNDERLYING SHARE PORTFOLIO IS POSITIVE Qualifying investment choice for integration +50 % in USD gross return after 5 years IF UNDERLYING SHARE PORTFOLIO GOE
Slide 112: Most efficient, flexible way to invest internationally
The most efficient, flexible way to invest internationally Structured for Optimal liquidity with estate planning 100 contracts with multiple ownership and beneficiaries for proceeds and ownership
Slide 113: Cost effective trusts through Zedra Trust
Cost effective trusts through Zedra Trust* CLIENTS CAN ELECT THE TRUST AS A BENEFICIARY AND GET: Access to an international trust at just £200 per year discount to trust fees UP TO refund of trust fees after five years Applies to Global Endowments with a minimum investment of USD 100,000 and 100% in
Slide 114: Most efficient, flexible way to invest internationally
The most efficient, flexible way to invest internationally Structured for Optimal Efficient tax Competitive liquidity with estate planning structuring with tiered admin fee 100 contracts with multiple no CGT on Rand ownership and depreciation beneficiaries for proceeds and ownership
Slide 115: Most cost-effective international endowment in the market
The most cost-effective international endowment in the market Over ten years the currency enhancer An unmatched solution for clients needing exceeds all admin fees paid an international trust Annual admin fee net of benefits A standalone trust can cost in excess of GBP 35,000 over ten years 0.6% 0.5
Slide 116: Most efficient, flexible way to invest internationally
The most efficient, flexible way to invest internationally Structured for Optimal Efficient tax Competitive liquidity with estate planning structuring with tiered admin fee 100 contracts with multiple no CGT on Rand ownership and depreciation beneficiaries for proceeds and ownership ABILITY TO CONVE
Slide 117: World-class client journey
Our international offering is supported by a world-class client journey WEBSITE QUOTE ONBOARDING Redesigned client- Completely focused quote reportrevamped that’s client website that’s aesthetically Smart verification Refurbished investment striking, intuitive, and unparalleled DISCOVERY GLOBAL MODE
Slide 118: Invest at exchange rates below the market
Invest at exchange rates below the DISCOVERY INVEST market with the currency enhancer Access portfolios advised by leading asset managers Construct your own portfolios through our curated list of 73 funds Flexible and efficient Global Endowment construction for liquidity and optimal tax and estate p
Slide 119: Welcome to Invest International
DISCOVERY INVEST WELCOME TO INVEST INTERNATIONAL OPTIMAL PRODUCTS & STRUCTURES UNIQUE REWARDS & INCENTIVES PLUS UP TO 50% BACK ON YEARLY INTERNATIONAL TRUST FEES
Slide 120: Discovery Insure
Discovery Insure ANTON OSSIP
Slide 121: Growth and efficacy
Growth and efficacy CONTINUED GROWTH AND EXPANSION INCENTIVISING DRIVER BEHAVIOUR IMPROVEMENT 243 073 R321 billion R852 million Car & Home in Car & Home Fuel cash back paid Insurance cars Insurance to our clients insured assets Change in motor accident frequency by driver R37 billion 16% behaviour c
Slide 122: Discovery Insure's product platform
DISCOVERY INSURE’S PRODUCT PLATFORM CATERS FOR EVERY LIFE STAGE AND CLIENT SEGMENT
Slide 123: Mythbusters
Older adults pay too much for vehicle insurance MYTHS THIS IS DUE TO VISION, COGNITION OLDER ADULTS ARE WORSE DRIVERS AND MOTOR FUNCTION IMPAIRMENT Older adults Older adults Clients who complete their According to Discovery Insure data: (65-80) have a (65-80) drive Vitality Health Check have DISCOVE
Slide 124: Vitality Drive 65+
Vitality Drive 65+ GET UP TO 50% VEHICLE PREMIUM PAYBACK GET ACCESS TO ALL THE OTHER RICH VITALITY DRIVE EVERY YEAR REWARDS LIKE: Diamond 50% Up to 50% fuel Active Status-based cash back Rewards rewards Gold 35% Silver 20% Bronze 15% Blue 10% Qualifying criteria: GET UP TO 100% VEHICLE PREMIUM Age
Slide 125: Bespoke optional features to tailor insurance cover
BESPOKE OPTIONAL FEATURES TO TAILOR INSURANCE COVER TO YOUR CLIENTS’ NEEDS
Slide 126: Clients need a new warranty cover solution
Clients need a new warranty cover solution 90%of South The average warranty claim CLIENTS NEED Africans say they are 56% of Discovery = R11 960 WA R R A N T Y keeping their vehicles Insure clients’ COVER for longer due to the manufacturer current economy warranty cover has expired 21% of cars have a
Slide 127: Introducing Discovery Insure Vehicle Warranty
Introducing Discovery Insure Vehicle Warranty
Slide 128: Unique, market-leading warranty cover
Unique, market-leading warranty cover DISCOVERY INSURE’S UNIQUE WARRANTY COVER TRADITIONAL WARRANTY COVER Unlimited cover for mechanical breakdown Rand value cover limits per vehicle part and electrical failure imposed Sophisticated, risk-rated premium structure Unsophisticated pricing Embedded wear
Slide 129: The first telematics-based warranty cover
The first telematics-based warranty cover Get up to 50% off yearly servicing and maintenance costs, based on Vitality Drive status, limited to R5 000 spend BLUE BRONZE SILVER GOLD DIAMOND PLUS DOUBLE discount up to 100% at any Motus Network and Bosch dealership With over 270 of these dealerships, af
Slide 130: Vehicle Warranty waiting period waiver
Discovery Insure Vehicle Warranty Waiting Period Waiver A three-month waiting period applies if there is a gap between the end of manufacturer’s warranty cover and the start of Discovery Insure Vehicle Warranty. Clients can waive the waiting period if they complete and pass a Bosch vehicle functiona
Slide 131: To reward clients for driving well
SUPPORTED BY THE VITALITY DRIVE CHASSIS TO REWARD CLIENTS FOR DRIVING WELL
Slide 132: Vitality Drive points re-defined
Vitality Drive points re-defined A scientific, loss-aversion based measurement of driving behaviour 25 DAILY DRIVE POINTS DRIVE WELL TO MAINTAIN In an experiment done by behavioural ALLOCATION DRIVE POINTS economist Dan Ariely, he found that Smooth acceleration Smooth braking Smooth cornering No spe
Slide 133: Enhanced Active Rewards drive goals
Enhanced Active Rewards drive goals PERSONALISED WEEKLY DAILY DRIVE POINTS BANK TOWARDS WEEKLY VITALITY ACTIVE REWARDS ARE MORE DRIVE GOAL DRIVE RING REWARDING THAN EVER BEFORE Earn 100 for each weekly goal achieved PLUS A play on the gameboard to flip a tile and reveal even more Discovery Miles 0/1
Slide 134: Vitality Drive 2.0 updated points structure
Vitality Drive 2.0 updated points structure Intuitive, transparent points structure to align weekly and monthly rewards Driving behaviour Up to 1 100 points Daily Drive points bank towards the client’s Driving Profile up to 750 Vitality Drive points a month DRIVING BEHAVIOUR 25 DRIVE POINTS ALLOCATE
Slide 135: Enhanced Vitality Drive summary
Vitality Drive 2.0 Summary PERSONALISATION LOW MILEAGE DRIVERS PENALISATION ALIGNMENT CURRENT VITALITY DRIVE Fixed weekly goal No goal achievement if Goal reset after Multiple points 100km of drive less than one harsh event currencies to reward event-free driving 100km a week good driving Dynamic, p
Slide 136: Clients driving less during COVID-19 lockdown stages
Discovery Insure clients are driving less during the COVID-19 lockdown stages Mileage Distribution Pre-COVID-19 Stage 4 lockdown Stage 5 lockdown Distance (km per month)
Slide 137: Introducing the Dynamic Distance cash back
Introducing the Dynamic Distance cash back GET UP TO 25% MOTOR PREMIUM CASH BACK EVERY MONTH BASED + EARN OTHER V I TA L I T Y D R I V E R E W A R D S ON MILEAGE DRIVEN Dynamic Distance cash Monthly mileage driven back percentage Vitality Drive clients can still earn up to 0 – 249 km 25% 50% fuel ca
Slide 138: Making sure all clients are rewarded
Making sure all of our clients are rewarded DY N A M I C R I S K | R E WA R D CO R R I D O R 30% of average vehicle premium Total cash back 100 200 300 400 500 600 700 800 900 1000 LOW EXPOSURE TO RISK HIGHER DRIVING Mileage driven (km per month) RISK CREDIBILITY Fuel cash back Premium cash back
Slide 139: Enabled by state-of-the-art technology
ENABLED BY STATE-OF-THE-ART TECHNOLOGY AND DAZZLING SERVICE FEATURES
Slide 140: Discovery Insure's extensive product offering
2020 | Discovery Insure’s extensive product offering V I TA L I T Y D R I V E 6 5 + Rewarding older adults for healthy living and good driving OPTI ONAL BENEFI TS V E H I C L E WA R R A N T Y Market-leading mechanical breakdown & electrical failure cover for vehicles VITALITY DRIVE V I TA L I T Y D
Slide 141: Integration and marketing support
Integration and marketing support HYLTON KALLNER
Slide 142: The theory of the Composite Model
The theory of the Composite Model + Value Incentive ∆ Behaviour Bent (qx) Value = × × × Member Member Incentive ∆ Behaviour Bent (qx) Behaviour Competitive Rewards Risk level change advantage Selection and Enhanced Stacking amplified Competitive Rewards behaviour change advantage Default risk correl
Slide 143: Integrated Corporate Benefits and Composite Assets
65+ At Home INTEGRATED CORPORATE BENEFITS COMPOSITE ASSETS
Slide 144: The corporate imperative in response to COVID-19
The corporate imperative in response to COVID-19 PRIORITISING EMPLOYEE WELLBEING TO REMAIN COMPLYING WITH NEW CORPORATE REGULATIONS TO PRODUCTIVE RETURN-TO-WORK • Strict health protocols including provision of face masks and hand sanitizer • Adequate space for employees and social distancing • Retur
Slide 145: COVID-19 benefits for employers
Comprehensive set of COVID-19 benefits for employers COVID-19 RESOURCE HUB IDENTIFICATION AND MANAGEMENT VIRTUAL CONSULTATIONS & 24/7 HOTLINE OF HIGH-RISK EMPLOYEES Intelligence Wellness Access to virtual consultations through the COVID-19 dashboard to identify Communication Specialist DrConnect pla
Slide 146: Integrated Corporate Benefits for employers
Integrated Corporate Benefits for employers EXECUTIVE WELLNESS ON-SITE CLINICS HEALTHY COMPANY INTEGRATED Executive Wellness On-site clinics Healthy Company CORPORATE BENEFITS
Slide 147: Executive Wellness Experience
Executive Wellness Experience Hearing Vision & Glaucoma screening Posture ECG Lung function Cholesterol & lipogram Waist-adjusted Blood pressure BMI Urine & kidney Glucose & HbA1c Individual Vitality Fitness Family and domestic Home, Office or Uber Black health report Assessment worker screening Fac
Slide 148: On-site clinics
On-site clinics PRIMARY HEALTHCARE SCREENING VIRTUAL GP CONSULTS PRICING STRUCTURE Treatment of acute and Health screening across A virtual GP enabled clinic YEAR 1 | FREE ONSITE CLINIC chronic conditions physical, emotional and allows the nurse to connect DAYS PER WEEK financial wellbeing to
Slide 149: Healthy Company Core
Healthy Company Core Offering employees support for physical, emotional and financial wellbeing as well as legal support at no additional cost for the first three-years DIGITAL ASSESSMENTS AND Episode RISK CLASSIFICATION Management Results contribute to a comprehensive health and wellbeing risk prof
Slide 150: Product configurations unlock Integrated Corporate Benefits
Each product configuration unlocks unique Integrated Corporate Benefits OPTION OPTION OPTION 1 1 | HEALTHCARE 2 1 | HEALTHCARE 3 1 | HEALTHCARE 2 | GROUP RISK 2 | RETIREMENT FUNDS 2 | GROUP RISK 3 | RETIREMENT FUNDS + + + + Executive Wellness Plus Healthy Company Core Executive Wellness Plus On-site
Slide 151: Corporate integrator in action
Corporate integrator in action SCREENING ONSITE CLINIC HEALTHY COMPANY MEET CRAFT Executive Wellness Core Half day clinic, one day per Healthy Company Core: Plus for all Execs above week No cost CONSULTING the FCL Cost Healthy Company 510 employees Discovery Wellness − Year 1: No cost
Slide 152: Introducing two new adviser fees
Introducing two new adviser fees Compensating advisers for the advanced consulting required on an integrated and retirement funds client INTEGRATED CORPORATE BENEFITS RETIREMENT FUNDS No. of IMPLEMENTATION FEE No. of IMPLEMENTATION FEE employees employees per client per client Average fee pmpm Total
Slide 153: Summary: Integrated Corporate Benefits for employers
SUMMARY: INTEGRATED CORPORATE BENEFITS FOR EMPLOYERS Supporting employers with Unlocking benefits through Compensating advisers for comprehensive COVID-19 benefits integration advanced consulting required
Slide 154: Unique integration opportunities
UNIQUE INTEGRATION OPPORTUNITIES CORPORATES RETAIL 80% of employer groups only have 1 product 80% of clients only have 1 product Small (10-100) Medium (100-400) Large (400+) >3.3m clients 6,200 corporates 1,200 corporates 500 corporates Average product take-up <1.6 8,000 corporates 40% of Life clien
Slide 155: Integrated corporate quoting
INTEGRATED CORPORATE QUOTING
Slide 156: Unique integration opportunities
UNIQUE INTEGRATION OPPORTUNITIES CORPORATES RETAIL 80% of employer groups only have 1 product 80% of clients only have 1 product Small (10-100) Medium (100-400) Large (400+) >3.3m clients 6,200 corporates 1,200 corporates 500 corporates Average product take-up <1.6 8,000 corporates 54 17 13 7 6 40%
Slide 157: AiQuote
AIQUOTE 4 Discovery equivalent quote generated 1 Select product (Life, Insure, 2 Upload 3rd party statement or 3 OCR and AI technology extracts key policy and Invest) quote client details APPLICABLE TO LIFE, INSURE AND INVEST
Slide 158: Updated RAR tool
U P D AT E D R A R T O O L Comprehensively complete a full advice record in <5 minutes New Features Added Purple and Business Life Plan support Updated with latest benefits and features Updated with latest benefits of the other insurers Optimized output with the ability to save to PDF
Slide 159: Marketing collateral
MARKETING COLLATERAL Vitality Health Insure Invest Life Employee Benefits * * * A L L M AT E R I A L S N O W AVA I L A B L E O N F I N A N C I A L A D V I S E R Z O N E * * *
Slide 160: Limited offers
LIMITED OFFERS Pay LifeTime Max 100% and get LifeTime Max 200% for the first three years No waiting periods for clients who take up warranty Get back up to 100% Get 50% gross return in cover between June and September 2020 and complete Zero admin fees for of your qualifying USD after 5 years if cert
Slide 161: Product updates: go-live dates
PRODUCT UPDATES | GO -LIVE DATES At Home NEW Invest International Discovery solutions June External solutions Global Alpha Global External Investment Choices Investment Choices Specialized structured solutions Discovery Dollar Cap200+ 65+ LEGACYFUND Up to 40% more life cover in retirement * Warranty
Slide 162: Summary: Discovery Day 2020
SUMMARY | DISCOVERY DAY 2020 Employee Health Life Invest Insure Bank Benefits COVID benefits ++ Integrated Vitality Drive Vitality Corporate benefits Double Vitality premium for Seniors Money 2.0 paybacks leveler Drive LEGACYFUND COVID benefits Screening Access to GP Up to 40% Dynamic Value added co
Slide 163: Product updates: upcoming masterclasses
PRODUCT UPDATES: UPCOMING MASTERCLASSES TUESDAY WEDNESDAY THURSDAY MONDAY TUESDAY 26 May 27 May 28 MAY 1 JUNE 2 JUNE 08:00 09:00 Discovery Life: Launch Overview Discovery Bank, Vitality Money Discovery Invest: Investing Discovery Health and Employee Discovery Life: Shared value & Start: 09:00 and Di
Slide 164: Product updates
g Discovery Product updates 20 MAY 2020