Discovery Insure has focus on continued growth

The company is enhancing the claims process, introducing new ways to improve driving ability and increasing cover in some cases, says Discovery Insure's chief executive Anton Ossip. The additional features would be available by the end of next month.

Launched in June 2011, Discovery Insure had insured more than 44,000 vehicles by June this year - making the company the fastest- growing insurer in SA with 10% share of new business. The insurer reported new business growth of 53% to R366m for the year to June.

Ossip said between 130 and 140 clients were signing up for the insurance cover each day.

The innovations being introduced included writing-off a car at lower levels of damage and a retail value booster which allows clients to receive 15% more than the retail value of their car following a total loss, either through a write-off or theft.

One of the main areas is focused on trying to improve driver behaviour and skills considering that the core of short-term insurance is paying motor vehicle claims.

Incentive to drive better

"Giving people incentives to drive better has a significant effect on reducing the number of motor vehicle accidents," claimed Ossip.

He said prior to the launch of Discovery Insure, short-term insurance had been about reacting to a claim, instead of preventing a claim and managing risk.

Clients on the driver behaviour programme, Vitality-drive, had one-third of the national fatality rate and about 60% the mortality rate of those on Discovery Life.

"We can see the difference in accident rates of our clients over time," Ossip said adding that the better they drive, the more they get back in fuel rewards.

"As average fuel rewards increase, it is hedged by the lower claims we get," he said.

Discovery Insure's key differentiator is the use of telematics - a wireless device in the client's vehicle that transmits data in real time to Discovery. The data is used to track the way the driver is driving.

"The increasing use of telematics is a worldwide trend, embraced by the large insurers in the US and UK," said Mr Ossip.

"Telematics is the way of the future in insurance offerings. Not to use it is missing out on the most important variable," he said.

Discovery Insure had a team of actuaries as well as an electrical and aeronautical engineer, responsible for analysing the data that is sent to it from the vehicles.

Source: Business Day via I-Net Bridge