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GfK - Insurance Incentives and Rewards in South Africa

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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.

Published in: Economy & Finance
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GfK - Insurance Incentives and Rewards in South Africa

  1. 1. 1© GfK 2016 | Innovatielab – Lessons from abroad Insurance Incentives and Rewards in South Africa Bradley Taylor | Managing Director GfK South Africa
  2. 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. 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. 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. 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. 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. 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. 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. 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%

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