Bradley Taylor investigates the insurance incentives and rewards in South Africa and what we can learn from the way rewards are used to drive loyalty and business in this competitive market.

1. 1© GfK 2016 | Innovatielab – Lessons from abroad
Insurance Incentives and Rewards in
South Africa
Bradley Taylor | Managing Director GfK South Africa

2. 2© GfK 2016 | Innovatielab – Lessons from abroad
South Africa Market
38.2m People | 38% Middle Class+Adult (16+) Population
Burial Society 11.3m People | 26% Middle Class+
Funeral Cover 7.2m People | 54% Middle Class+
Medical Aid 5.4m People | 88% Middle Class+
Life Cover 3.3m People | 85% Middle Class+
Short-term Insurance
Home, Vehicle
1.7m People | 96% Middle Class+
Rich and Middle Class Grudgingly try to protect their lifestyle
Source: AMPS 2015b, Middle Class is LSM 7+

3. 3© GfK 2016 | Innovatielab – Lessons from abroad
Dealing with Crime and Accidents BUT
 Rewards flip this purchase on its head
 Emotional gratification helps to buy loyalty in the face of grudge purchases
“I won’t move as if I do I will loose my gym contract” - Vitality Member
“By July I would have reached gold status again” – Vitality Member
Rewards give the traditional purchase
emotional payoff and experience
What benefit can I get if I have no incidences?

4. 4© GfK 2016 | Innovatielab – Lessons from abroad
What exactly does Vitality and Competitors Offer?
Integration is Key, Discovery was first to market and stills owns the space

5. 5© GfK 2016 | Innovatielab – Lessons from abroad
What exactly does Vitality and Competitors Offer?
Benefits which are financially rewarding…
Up to R600 a month
Depends on spend but R100s of Rands
Not uncommon for people to get a value of over
R800 in rewards and benefits a month.
5x return for the subscriber…
5% to 10% of average middle class income

6. 6© GfK 2016 | Innovatielab – Lessons from abroad
Rewards partners integrate data from wearables, credit cards, partners, health measures,
Individual level risk management incentives and loyalty cards to calculate points and levels.
Earning Status and Points
Easy, Fair and Accurate Measurements
Get Apple watch Get Active Get Rewarded

7. 7© GfK 2016 | Innovatielab – Lessons from abroad
Vitality is a Brand in its own right
LIFE
Rebates on Life Cover
Lower Annual Premiums
INSURE
Discounts offered
HEALTH
Monitored and used to
drive other rewards
CARD
Cash back
INVEST
Discounts and Rebates
Integration sets rewards off as the King Pin to cross selling based on the concept
that the more business you have with “us” the more we will reward you.

8. 8© GfK 2016 | Innovatielab – Lessons from abroad
Fair Data usage Policy
People “activate” freely since they understand the benefits
>
>
Sharing of personal data is not the focus but “activating” of rewards.
People link in loyalty shopping cards, personal devices (fitbit, apple watch etc) to
earn points and rebates…

9. 9© GfK 2016 | Innovatielab – Lessons from abroad
Conclusion: Fun, Rewarding Health, Personal and Life Insurance
This represents
of Middle Class In
South Africa
Rewards have successfully transformed the health and insurance business in
South Africa by embracing the Experience Economy
1m+members
25%