Slide 1: UBS | Dr Jonathan Broomberg
U B S | D R J O N AT H AN B R O O M B E RG C E O , V I TA L I T Y H E A LT H I N T E R N AT I O N A L G L O B A L H E A D O F H E A LT H I N S U R A N C E, D I S C O V ERY G R O U P 7 OCTOBER 2021
Slide 2: Global Emergence of Digital Ecosystems
GLOBAL EMERGENCE OF DIGITAL ECOSYSTEMS
Slide 3: Global trends transforming insurance markets accelerated by COVID-19
Global trends, which are transforming insurance markets, have been accelerated by COVID-19 “It’s time to tie bank profits to Banking customers financial health” “We want revolutionary • The rise of digital actuaries” Tesla launching • Ways of work Motor insurance company - premiums based on data col
Slide 4: Significant increase in ecosystem strategies globally
Significant increase in ecosystem strategies globally Blurring of boundaries Insurtech and ecosystem Many have invested substantially into in these three trends strategies are increasing health ecosystems2 Record quarter for insurtech xx Health funding in EUR m Core business Funded health start-ups
Slide 5: COVID-19 shifted consumer behaviour, technology adoption and supporting regulations
COVID-19 has led to a shift in consumer behaviour, adoption of technology and supporting regulations From 11% of US consumers using To date, Discovery Health has telehealth in 2019 to 46% of consumers 1 distributed over 3600 Pulse oximeters for home monitoring of high risk COVID in 2020 patients 5 3
Slide 6: Unlocking digital health ecosystems is a $100bn opportunity
Unlocking the power of digital health ecosystems is a $100bn opportunity The opportunity: Unleash the value with digital health Digital health innovation ecosystems $ 100bn unrealized value Connect fragmented health systems integrating in digital health solutions Into seamless journeys Across major
Slide 7: Discovery's Digital Ecosystem Strategy
DISCOVERY’S DIGITAL ECOSYSTEM STRATEGY
Slide 8: Evolving the business model to an ecosystem
Evolving the business model to an ecosystem Ecosystem Composite Institution Health Life Invest Motor Bank Institution Platform Platform “Make people healthier”
Slide 9: The Vitality platform is the foundation of Discovery's integrated ecosystems
The Vitality platform is the foundation of Discovery’s integrated ecosystems INCENTIVE LAYER BEHAVIORAL DESIGN GLOBAL INTEGRATED PARTNERS INCENTIVE Pre- Nudge Loss MEMBER commitment theory Aversion BEHAVIORAL LAYER HEALTH BEHAVIORS CONTENT DEVELOPMENT INCENTIVE LAYER △BEHAVIOR ACTIVE REWARDS INCENTI
Slide 10: The Vitality platform allows an expansion from 1 ecosystem to 3
The Vitality platform allows an expansion from 1 ecosystem to 3 INCENTIVE LAYER BEHAVIOURAL LAYER DATA LAYER PRICING LAYER TECHNOLOGY LAYER Comprehensive Digital Health Ecosystem Shared value health insurance approach
Slide 11: Deep and wide integrated ecosystem strategy in South Africa
Deep and wide integrated ecosystem strategy in South Africa Drive Health Money Discounts PayBacks Boosts
Slide 12: Shared value health insurance model underpinned by technology stack and expertise
Discovery’s Shared value health insurance model is underpinned by a sophisticated battle tested technology stack and expertise Improved health, better value through improved price and benefits Healthier society Lower claims Improved productivity Higher margins Reduced healthcare Positive selection b
Slide 13: Discovery's health value chain: Vitality and health capabilities
Discovery’s health value chain: Ecosystem integrating Vitality and health capabilities transforms health insurance performance Vitality capability Health insurance capability SELECT & CHANGE VALUE – BASED ATTRACT RETAIN PRICE BEHAVIOR CARE Attract a disproportionate Use rich datasets Incentivize mem
Slide 14: Fully integrated, production tested digital health ecosystem globally
Discovery deploying fully integrated, production tested digital health ecosystem globally KNOW YOUR WELLNESS AND ASSETS CARE AND HEALTH PREVENTION TREATMENT HEALTHID DOCTOR CONNECT PERSONAL AR2020 + VIRTUAL INTEGRATED CARE HEALTH GATEWAY CONSULTS WITH COORDINATION DOCTOR ELECTRONIC VIRTUAL CONSULT P
Slide 15: Vitality led strategy has achieved substantial global footprint
Vitality led strategy has achieved substantial global footprint – continuing to expand quickly SA COMPOSITE UK COMPOSITE PARTNER COMPOSITE VITALITY HEALTH MODEL MODEL MODEL INTERNATIONAL USA Markets Vitality lives New members Gross annual per month revenue
Slide 16: Across insurance lines and adjacencies
… across insurance lines and adjacencies Insurance Partner Vitality Health Powered by Markets International Vitality Insurance partners USA Markets GYM & DEVICES GROCERS TRAVEL OTHER ACTIVE REWARDS Vitality lives 1
Slide 17: Vitality in the USA corporate wellness business
Vitality in the USA has built a successful corporate wellness business supported By an integrated digital health platform open to any wearable and health app Wellness ecosystem offering to employers and other funders… Acute and ongoing Pathways for Improve workplace Financial wellness interventions
Slide 18: Discovery's technology and tools support Ping An's health ecosystem
Discovery’s technology and tools support Ping An’s health ecosystem Highlighted tools HEALTH LIFE INSURANCE INCENTIVE LAYER INSURANCE BEHAVIORAL DESIGN GLOBAL INTEGRATED PARTNERS INCENTIVE Pre- Nudge Loss MEMBER commitment theory Aversion BEHAVIORAL LAYER HEALTH BEHAVIORS CONTENT DEVELOPMENT △BEHAVI
Slide 19: Massive, growing datasets enable sophisticated data analytics
Massive, growing datasets from multiple sources allow sophisticated data analytics capabilities with shift from insights to powerful predictive and personalisation capabilities Ops and Service data Wellness data 02 03 of behaviour-linked • Calls and emails • BMI, chronic conditions, stress insurance
Slide 20: Superior health insurance performance
Superior health insurance performance ATTRACT SELECT & CHANGE VALUE – BASED VALUE CHAIN PRICE BEHAVIOR RETAIN CARE Positive selection Behavior change Healthcare costs Selective lapses Average age of policy Physical activity after Healthcare cost by Vitality Vitality uptake Lapse Rate,% holders engag
Slide 21: Reflecting on COVID
sf ff Health Vitality International REFLECTING ON COVID
Slide 22: Physical activity impact on COVID-19 mortality risk
Recent Discovery Health and Vitality data demonstrates the impact of physical activity on COVID-19 mortality risk No exercise Exercise 2,5 2,0 1,6 1,2 1,0 1,0 0,9 Hypertension No chronic Hypertension No chronic Hypertension and Hypertension and conditions conditions diabetes diabetes 45 year old 65
Slide 23: SA's epidemic 5x worse than the UK's so far
SA’s epidemic 5x worse than the UK’s so far Deaths (90% excess) 160 000 16 000 450 000 9 000 New cases New cases Deaths 140 000 14 000 400 000 8 000 350 000 7 000 120 000 12 000 300 000 6 000 100 000 10 000 Vaccinations 250 000 5 000 80 000 8 000 decouple 200 000 infections and 4 000 60 000 6 000 15
Slide 24: Data supports efficacy of vaccines against COVID-19
Data supports efficacy of vaccines 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 infection