Dis-Chem to sell insurance

LIFE: WILL GROUP OUT-VITALITY DISCOVERY?

Dis-Chem will launch life insurance in the first quarter of next year, a move which it believes will significantly disrupt the broader market.

Discovery Life, which relies on the Vitality shared value model to offer premium discounts and cash back based on healthy behaviour, has 27.3% market share. This is substantially higher than large competitors. This would place it squarely in the crosshairs of Dis-Chem's offering.

The pharmacy group believes it has a deep understanding of so-called "health consumption risks". This is especially important for chronic patients who are typically forced to pay higher premiums because of their condition(s).

Because it has an understanding of whether or not its customers are following their prescriptions and taking chronic medication, it believes it is able to use this data to cut premiums considerably.

Dis-Chem is bullish that no other insurance provider can have as deep an understanding of its customers as it does.