Discovery Limited · JSE:DSY
Discovery — Investor Presentation (March 2021)
38 slides from Discovery's investor presentation, March 2021
Slide 1: Discovery Insure
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Slide 2: The challenge on South Africa's roads
THE CHALLENGE ON SOUTH AFRICA’S ROADS Road traffic fatality rates are improving but still People drive worse than they think high in South Africa Estimated road traffic fatality rate, per 100 000 Perception Vitality Drive objective measure 81% 2011 2019 Objectively, good driving is overstated by mor
Slide 3: 10 years of Discovery Insure, 10 years of driving well
10 YEARS OF DISCOVERY INSURE, 10 YEARS OF DRIVING WELL The solution | Shared-value short-term insurance The result | Exceptional value for clients Members Road Compared to Improved driving, better value through traffic South African improved price and benefits fatality road traffic rate of fatality
Slide 4: The Vitality Drive model is working
THE VITALITY DRIVE MODEL IS WORKING 17% increase in engagement as clients move to higher The longer clients stay the lower their risk statuses over 4 years Loss Ratio by Duration Vitality Drive status-based distribution 59% 50% 46% 40% Year 1 Year 2 Year 3 Year 4 Year 1 Year 2 Year 3 Year 4
Slide 5: Driving exceptional growth as a differentiator in the market
DRIVING EXCEPTIONAL GROWTH AS A DIFFERENTIATOR IN THE MARKET Normalised Operating Profit New Business Gross Written Premium to R107m to R617m* to R2 121m* (excl. Commercial) H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 *Perso
Slide 6: Extensive product platform covering personal and commercial lines
RESULTING IN AN EXTENSIVE PROUCT PLATFORM COVERING PERSONAL AND COMMERCIAL LINES
Slide 7: The personal lines offering provides protection for the whole family
THE PERSONAL LINES OFFERING PROVIDES PROTECTION FOR THE WHOLE FAMILY
Slide 8: Benefits and protection for the whole family
BENEFITS AND PROTECTION FOR THE WHOLE FAMILY Real-world driving Enhanced safety Additional layer experiences for first-time for children of protection drivers IMPROVED CLIENT EXPERIENCE AND ENGAGEMENT
Slide 9: Doubling the discounts on the car seat benefit
DOUBLING THE DISCOUNTS ON THE CAR SEAT BENEFIT Vitality Drive clients can get off car seats, based on their Vitality Drive status Replacement car seat BLUE BRONZE SILVER GOLD DIAMOND following a motor vehicle 20% 25% 30% 35% 50% accident, at no additional cost to make sure families can keep their ch
Slide 10: Benefits and protection for the whole family
BENEFITS AND PROTECTION FOR THE WHOLE FAMILY Real-world driving Enhanced safety Additional layer experiences for first-time for children of protection drivers IMPROVED CLIENT EXPERIENCE AND ENGAGEMENT
Slide 11: Driving Academy – Video
DRIVING ACADEMY – VIDEO
Slide 12: Premium discounts for first-time drivers
PREMIUM DISCOUNTS FOR FIRST-TIME DRIVERS 15% Vehicle premium discount For first-time drivers who join Discovery Insure after passing the Licence Prep simulator course and their drivers licence test
Slide 13: Benefits and protection for the whole family
BENEFITS AND PROTECTION FOR THE WHOLE FAMILY Additional layer of Real-world driving protection Enhanced safety Additional layer experiences for first-time for children of protection drivers IMPROVED CLIENT EXPERIENCE AND ENGAGEMENT
Slide 14: Additional protection with the Motion Alert feature
ADDITIONAL PROTECTION WITH THE MOTION ALERT FEATURE Superior smartphone-enabled technology Layer 1 Immediate trip feedback Vehicle panic button Earn more points Enhanced Stolen Vehicle Recovery Layer 2 An over 50% improvement in stolen vehicle recovery rates Primary drivers will be notified when the
Slide 15: How Motion Alert works
HOW MOTION ALERT WORKS The client can either request emergency assistance or Discovery Insure sends a inform us that they are aware notification to the primary Discovery Insure detects that that the vehicle is being driven driver informing them that the the vehicle is not being driven vehicle is bei
Slide 16: Benefits and protection for the whole family
BENEFITS AND PROTECTION FOR THE WHOLE FAMILY Additional layer of Real-world driving protection Enhanced safety Additional layer experiences for first-time for children of protection drivers IMPROVED CLIENT EXPERIENCE AND ENGAGEMENT
Slide 17: Improved client experience and engagement with our Drive Centres
IMPROVED CLIENT EXPERIENCE AND ENGAGEMENT WITH OUR DRIVE CENTRES MENLYN CAPE TOWN SANDTON WITH DRIVE CENTRES
Slide 18: Payback on first six vehicle premiums
CELEBRATING 10 YEARS OF DISCOVERY INSURE PAYBACK ON FIRST SIX VEHICLE PREMIUMS Qualifying criteria: Join Discovery Insure and activate Vitality Drive between 1 April and 30 June 2021 Achieve Gold Vitality Drive status at least once during the first three months of joining
Slide 19: Product platform extended to offer cover to South African businesses
THE PRODUCT PLATFORM EXTENDED TO OFFER COVER TO SOUTH AFRICAN BUSINESSES
Slide 20: Discovery Business Insurance has grown and provided value to clients
DISCOVERY BUSINESS INSURANCE HAS GROWN AND PROVIDED VALUE TO CLIENTS Growth in API annual growth Annual growth Annual growth in in sums insured number of policies Annual growth in Annual growth broker support in conversion rate June 2018 Dec 2020
Slide 21: Superior value and responsive products for different industries
SUPERIOR VALUE AND RESPONSIVE PRODUCTS FOR DIFFERENT INDUSTRIES Heavy commercial vehicles
Slide 22: The model is working in the commercial insurance space
THE MODEL IS WORKING IN THE COMMERCIAL INSURANCE SPACE Loss ratio by Vitality Drive for Business status Claim severity by Vitality Drive for Business status 100 100 62 56 49 39 35 27 22 13 No Vitality Blue Bronze Silver Gold & No Vitality Blue Bronze Silver Gold & Drive for Diamond Drive for Diamond
Slide 23: Clients have earned great rewards with Vitality Drive for Business
CLIENTS HAVE EARNED GREAT REWARDS WITH VITALITY DRIVE FOR BUSINESS Accumulated monthly cash back “Discovery Insure’s business on Vitality Drive offering has enabled us to for Business realise a decrease in accidents of over 20% since the implementation of Vitality Drive for Business.” in annual clai
Slide 24: Heavy commercial vehicles present unique risks and challenges
HEAVY COMMERCIAL VEHICLES PRESENT UNIQUE RISKS AND CHALLENGES TRUCK DISTRACTED DRIVER Impacts steering, braking and acceleration 71% 13% Increases stopping distances of commercial vehicle of drivers were fatigued Causes tyres to overheat accidents were caused by at the time of their accident and wea
Slide 25: HCV Video
HCV VIDEO
Slide 26: The next evolution in driving behaviour measurement with DriveView
THE NEXT EVOLUTION IN DRIVING BEHAVIOUR MEASUREMENT WITH DRIVEVIEW Real-time views of inside and outside the cabin Visual footage of each harsh driving event Independent mobile connection and GPS unit Access to online fleet portal with complete video footage Vehicle safety features such as Impact Al
Slide 27: Superior value and responsive products for different industries
SUPERIOR VALUE AND RESPONSIVE PRODUCTS FOR DIFFERENT INDUSTRIES Heavy commercial vehicles Restaurants
Slide 28: Restaurants have been hard-hit by COVID-19
RESTAURANTS HAVE BEEN HARD-HIT BY COVID-19 Restaurants have contributed significantly COVID-19 has presented challenges to the economy to this industry Nearly a of local restaurants have had to close shop since the start of the lockdown Open Closed In 2019, this sector contributed And out of had to
Slide 29: Restaurant's Video
RESTAURANT’S VIDEO
Slide 30: Premium relief for restaurant owners affected by COVID-19
PREMIUM RELIEF FOR RESTAURANT OWNERS AFFECTED BY COVID-19 Restaurant owners receive on non-motor premiums AVAILABLE UNTIL 30 JUNE 2021
Slide 31: Professionals face unique and evolving risks
PROFESSIONALS FACE UNIQUE AND EVOLVING RISKS over over over Medical professionals on DHMS Practicing and candidate Accounting professionals attorneys of physicians use e-prescribing systems of accountants prefer cloud-based The number of lawyers using accounting technology, including litigation-supp
Slide 32: Superior value and responsive products for different industries
SUPERIOR VALUE AND RESPONSIVE PRODUCTS FOR DIFFERENT INDUSTRIES Heavy commercial vehicles Restaurants Healthcare
Slide 33: Tailored insurance for healthcare professionals
TAILORED INSURANCE FOR HEALTHCARE PROFESSIONALS Embedded cover Innovative benefits 25% of DHMS earnings for up to three months Cellphone and iPad repaired and replaced within one business day to ensure clients can get back to R100 000 cyber and reputational patients as soon as possible risks cover R
Slide 34: Superior value and responsive products for different industries
SUPERIOR VALUE AND RESPONSIVE PRODUCTS FOR DIFFERENT INDUSTRIES Heavy commercial vehicles Restaurants Accountants Healthcare and lawyers
Slide 35: Bespoke insurance solution for lawyers and accountants
BESPOKE INSURANCE SOLUTION FOR LAWYERS AND ACCOUNTANTS R100 000 cyber and Cellphone and iPad Up to 20% off new HP, Efficient, instant and reputational risks repair or replacement DELL and Lenovo secure document cover within one business laptop purchases signing with 25% off day Lexis Sign Access to
Slide 36: We will beat your client's premium
GIVE CLIENTS REAL VALUE FOR DOING BUSINESS WITH US Quote with Discovery Business Insurance between 1 April to 30 September 2021 and WE WILL BEAT YOUR CLIENT’S PREMIUM Qualifying criteria: • New clients only • Small to medium-sized businesses • Low to medium risk profiles, with − Professional and per
Slide 37: Offering a fee for helping clients engage with Vitality Drive
OFFERING A FEE FOR HELPING CLIENTS ENGAGE WITH VITALITY DRIVE Earn upfront for each vehicle with a valid score + VITALITY DRIVE STATUS ENGAGEMENT FEE Earn an additional Diamond 5% Gold 4% Silver 3% every month based on the Bronze 2% vehicle’s Vitality Drive status Blue 0%
Slide 38: Discovery Insure | March 2021 product launch
DISCOVERY INSURE | MARCH 2021 PRODUCT LAUNCH Discovery Insure Discovery Business Insurance Special Offers Enhanced car seat discounts and Rewards for managing PERSONAL LINES free replacement after an accident heavy commercial vehicles well Earn up to 50% vehicle premium payback on first six months p