Discovery Limited · JSE:DSY
Discovery — Investor Presentation (September 2021)
39 slides from Discovery's investor presentation, September 2021
Slide 1: Discovery Life Launch September 2021
DISCOVERY LIFE LAUNCH SEPTEMBER 2021
Slide 2: COVID-19 & Discovery Life business update
COVID-19 Product Additional & Discovery update support & Life business updates update 2
Slide 3: COVID-19 & Discovery Life business update
COVID-19 Product Additional & DISCOVERY update support & LIFE BUSINESS updates UPDATE 3
Slide 4: COVID-19 Update | September 2021
COVID-19 UPDATE | 10 SEPTEMBER 2021 National Discovery Life National infections Life infections Daily infections 25000 1st Wave 2nd Wave 1st Wave 2nd Wave 20000 3rd Wave 3rd Wave 15000 The average number of new daily 10000 infections continues to decrease. 5000 0 1 8 15 22 29 36 43 50 57 64 71 78 85
Slide 5: Our strategic response to the pandemic
OUR STRATEGIC RESPONSE TO THE PANDEMIC Employee vaccine Structural and pricing Central role in state-led mandate changes to products COVID-19 response Implement mandatory vaccination Preferred premiums for vaccinated DL 9 DH vaccination sites policy from 1 January 2022 members 1 000 staff deployed D
Slide 6: COVID-19 in South Africa was worse than predicted
COVID-19 IN SOUTH AFRICA WAS WORSE THAN PREDICTED DSY predicted the DSY underestimated the peak of Wave 2 and the timing and extent of Wave 3 first wave well Orig. Beta Delta Infectious variant coincided with Delay in vaccination Initial predicted deaths to Dec 20, at May 2020 holiday season program
Slide 7: Cause of death claims over time
CAUSE OF DEATH CLAIMS OVER TIME In 2021 there has been more death as a result of COVID-19 Cancer Heart and artery Trauma COVID-19 7
Slide 8: Intent to implement mandatory vaccination policy from January 2022
INTENT TO IMPLEMENT MANDATORY VACCINATION POLICY FROM 1 JANUARY 2022 >250k excess deaths in SA since May 2020 >30k Unprecedented health tragedy with the fourth wave 1 posing further risk >14k client deaths 20 employee deaths Lives saved if >60% population vaccinated 15 million excess deaths worldwid
Slide 9: Data supports efficacy of vaccination against COVID-19
DATA SUPPORTS EFFICACY OF VACCINATION AGAINST COVID-19 COVID-19 vaccination reduces Vaccine is >90% effective in reducing death risk of mortality relative to Discovery Health data on vaccine effectiveness* influenza1 Confirmed Deaths per million of the population Admission High care/ICU Death infect
Slide 10: Social impact and delivering on our core purpose
SOCIAL IMPACT AND DELIVERING ON OUR CORE PURPOSE 1,200 additional 680+ R6 billion individual life claims income continuation claims projected excess payment paid as a result of COVID-19 paid as a result of COVID-19 through the COVID-19 pandemic Continued innovation and Strong focus on saving lives N
Slide 11: Significant negative COVID-19 mortality impact but maintaining financial strength
SIGNIFICANT NEGATIVE COVID-19 MORTALITY IMPACT BUT MAINTAINING FINANCIAL STRENGTH Normalised operating profit Persistency Strong capital and liquidity position -55% to R1 341m All-time lowest SCR coverage Liquidity coverage Individual Life normalised profit up lapse rates FY21 3% to R3,950 million b
Slide 12: Looking ahead: optimising life insurance after the 3rd wave
LOOKING AHEAD | OPTIMISING LIFE INSURANCE AFTER THE 3RD WAVE SCR Cover Liquidity Amplified SVM Maintain a strong capital and liquidity 1. position, to meet high expected claims Estimated COVID-19 claims Supported strong back book cash in 3rd and 4th wave Debit order failures at all-time low generati
Slide 13: Product update
COVID-19 PRODUCT Additional & Discovery UPDATE support & Life business updates update 13
Slide 14: Discovery Life's digital strategy
DISCOVERY LIFE’S DIGITAL STRATEGY Technological enhancements aimed The success of our AI initiatives at supporting financial advice average fields extracted Focus on advice – more by AI Quote per competitor 01 efficiencies and less administration benefit combinations on average Improving accuracy 02
Slide 15: Introducing Activate
INTRODUCING Activate Advice Underwriting Automated. Quoting Compliance Intelligent. Pricing Integrated. Servicing 15
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Slide 17: Introducing Activate
INTRODUCING Activate Advice Underwriting Automated. Quoting Compliance Intelligent. Pricing Integrated. Servicing 17
Slide 18: Introducing AIq: AI Quote 2.0
Activate Advice Underwriting INTRODUCING AIq Advice Compliance AI Quote 2.0 Pricing Servicing 18
Slide 19: AI Quote 2.0
AIq AI QUOTE 2.0 NEW AND IMPROVED AI QUOTE FOR LIFE Integration with SmartAdvice Now supporting the top 6 competitors in the market Improved quote summary display Additional document support Embedded product content AUTOMATED INTELLIGENT PRICING CAPABILITY 19
Slide 20: Introducing SmartGuarantee
Activate Advice Underwriting INTRODUCING Quoting Compliance SmartGuarantee Sg Pricing offer Servicing 20
Slide 21: SmartGuarantee offer
Sg SMARTGUARANTEE OFFER Facilitated by AI QUOTE for Life The power of Shared-value Our structural pricing advantage The SmartGuarantee offer Insurance Automatic discounts where premium is higher than a comparable policy. Discovery’s Essential Life Plan is cheapest in the market where Vitality or Hea
Slide 22: Introducing AI Comply
Activate Advice Underwriting INTRODUCING Quoting AIc Compliance AI Comply Pricing Servicing 22
Slide 23: AI Comply
AIc AI Comply AUTOMATED INTELLIGENT REPLACEMENT ADVICE RECORD Flexible entry points Automated comparisons Keep track easily AI Quote (with optional AI SmartAdvice editing) Automatic pre-population Save or print the of accurate policy Replacement Advice Record SMAD SmartAdvice comparisons Save, store
Slide 24: Introducing Digital Acceptance
Activate Advice Underwriting INTEGRATED DIGITAL Quoting Compliance Pricing Da ACCEPTANCE Servicing 24
Slide 25: Digital Acceptance
Da DIGITAL ACCEPTANCE Enabling you to focus on what really matters Finalise & send documents Clients review & View & manage to clients accept online requests Additional method for Review and accept documents Central location to manage all accepting documents via Discovery profile Digital Acceptance
Slide 26: Discovery client quote screen
= QbDiscovery Client Acting on behaif of CLIENT / CLIENT DASHBOARD / VIEW CLIENT / QUOTE AND APPLICATION Joe Soap (1084196473) Mr George Geoffries QUOTE Al Quote allows you to automatically generate a comparable Discovery Quote by uploading or capturing another insurer's quote or policy schedule. Se
Slide 27: Activate
Activate AIq Underwriting Quoting AIc Sg Da Servicing 27
Slide 28: Additional support & updates
COVID-19 Product ADDITIONAL & Discovery update SUPPORT & Life business UPDATES update 28
Slide 29: Discovery Wills and Trust Services
DISCOVERY WILLS AND TRUST SERVICES Established February 2021 Will drafting, storage Estate property and related activities transfers Holistic estate planning and professional Deceased estate services crafted Executor and administration by industry experts, trustee appointments ensuring that your cli
Slide 30: Discovery's Testamentary Specialist Team
INTRODUCING DISCOVERY’S TESTAMENTARY SPECIALIST TEAM Enabling a seamless referral process Submit a lead on FAZ and receive: Initial commission on successful referral and sale of Discovery Estate Preserver YOUR Share of executor fees Identified for you Our testamentary specialists are: Qualified lega
Slide 31: Discovery Life International
Discovery Life International Market Variety of equivalent business and and cost ownership effective structures Incentives Bespoke and and best-of-breed rewards cover 31
Slide 32: The new Dollar Life Plan
THE NEW DOLLAR LIFE PLAN Product enhancements and offer driving strong uptake The R10.90 Product enhancements Significant traction New Dollar Life Plan Offer Lock in an exchange rate of for three years when adding Vitality Exchange Rate Protector Lower lapses on Dollar Plans versus local Plans* PAYB
Slide 33: Discovery Life International roadmap for Q4
DISCOVERY LIFE INTERNATIONAL ROADMAP FOR Q4 Offshore trusts and companies Available in all business assurance structures: available on Owner Clients can pay from Clients can Key person cover an offshore bank pay DOLLAR Contingent liability insurance account or a Discovery Invest annually in advance
Slide 34: Offers that increase access to our market-leading benefits
INTRODUCING OFFERS THAT INCREASE ACCESS TO OUR MARKET-LEADING BENEFITS SmartGuarantee R10.90 New Dollar Vaccination Max Offer Life Plan Offer PayBack Offer PayBacks up to Sg 100% 40% 0% 34
Slide 35: LifeTime Max 200% Severe Illness Benefit offer
LIFETIME MAX 200% SEVERE ILLNESS BENEFIT OFFER Premium discount LifeTime for three Pay the premium for the years Max LifeTime Max 100% 200% cover benefit and get the LifeTime LifeTime Max 200% Max benefit for the 100% premium first three years Best Cancer product in SA Automatic Child Severe Global
Slide 36: Offer details
OFFER DETAILS SmartGuarantee R10.90 New Dollar Life Vaccination Max LifeTime Max 200% Severe Offer Plan Offer PayBack Offer Illness Benefit Offer PayBacks up to Sg 100% 40% 0% Guarantee to beat a Lock in an exchange Get your maximum LifeTime Max 200% SIB competitor’s premium rate of for PayBack up t
Slide 37: Adviser support
ADVISER SUPPORT All the information you Support videos created See projected need for in-depth to include our product premiums, cover and Make use of our Find out more about knowledge of our enhancements as well PayBacks, as well as marketing materials Discovery Life’s latest product enhancements as
Slide 38: Rollout timelines
ROLLOUT TIMELINES 1 October Late October November Replacement Advice LifeTime 200% SIB Offer Digital Acceptance Record Tool online integration AI Quote enhancements Additional Dollar enhancements SmartGuarantee Offer Testamentary Specialist Team 38
Slide 39: Discovery Life Launch September 2021
DISCOVERY LIFE LAUNCH SEPTEMBER 2021