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DSY
DSY
Discovery and Vodacom bring cellphone technology to funeral cover market
Discovery Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1999/007789/06)
ISIN: ZAE000022331
Share Code: DSY
("Discovery")
News release
20 November 2006
Another first for the life industry as Discovery and Vodacom brings cellphone
technology to the funeral cover market
Using the same methodology as purchasing prepaid cellphone airtime, South
Africa"s fastest-growing major life assurer is pioneering a new marketing and
selling channel for funeral cover aimed at the low-income market.
Hylton Kallner, general manager of marketing for Discovery, says that a new
marketing model was needed when Discovery Life decided to enter what is a "very
competitive market."
"Cellphone penetration in SA is amongst the highest in the world, and is
especially strong in the LSM 1- 5 bracket at which this product is aimed. So we
decided to "piggyback" on the knowledge and habits of a very technologically
sussed market to deliver a product which offers convenient access and value-for-
money.
"Vodacom is proud to be part of this innovative service, creating an entirely
new concept in funeral cover, while maintaining the familiarity, affordability,
flexibility and control, based on its prepaid cellular platform. This service
opens up the world of funeral cover to all South Africans via Vodacom"s cellular
retail channels and cellular recharge infrastructure," says Shameel Joosub,
Managing Director, Vodacom South Africa.
"People are already very familiar with purchasing pre-paid airtime for their
cellphones and we expect them to find it just as easy and convenient to use the
same process to buy funeral cover now."
Kallner says market research showed that there is a large appetite for
simplifying the purchase of funeral cover.
"We expect demand for buying cover via cellphone on a pay-as-you-go basis to be
high, because it is more accessible, quicker and more convenient to organise
than buying cover through traditional channels."
Currently many people buy cover by giving cash to stokvels that buy cover on
their behalf. Another model allows retailer credit card-holders to purchase
cover as an add-on service, but not all people have cards and they sometimes
lose sight of exactly what it is they are buying.
"Our research shows that people also like the control the pre-pay model gives
them. And it gives people in remote rural areas equal access, so geography isn"t
a constraint on sound financial planning."
"They also like the user-friendliness of the product, even though it is a
totally new concept in funeral plans. Every element of the Discovery Prepaid
Funeral Plan starter pack is aimed at simplifying and clearly articulating the
concept and how to use it, so it really makes it simple."
People wanting to buy the policy will be able to pick up these starter packs at
participating Vodacom retail outlets and Spaza shops - initially only in
Gauteng. The product will be available in other provinces from 2007.
Discovery Prepaid Funeral Plan costs R40 a month and no other charges or costs
are incurred on the product.
Anyone between the ages of 18 and 64 can apply for funeral cover and it will
provide cover up to R10 000 for the person taking up the policy, their spouse
and up to a maximum of three children.
ENDS
ISSUED BY: Beachhead Media & Investor Relations
Grant Henry
(011) 214 2406/082 561 7172/ grant@bmsa.co.za
ON BEHALF OF: Discovery Health
For further information please contact:
Hylton Kallner
Marketing General Manager at Discovery
hyltonk@discovery.co.za
Tel: (011) 529 2842
Or visit www.discovery.co.za
Vodacom South Africa
Nicolene Visser
Executive Head: Corporate Communication
nicolene.visser@vodacom.co.za
Tel: (011) 653 5741
More on Discovery Life
Since its formation in 2000, Discovery Life has established itself as a
fast-growing market leader in the risk-only life assurance market - a
market it pioneered when it became the first to separate risk from
investment. Through linking one"s health status with one"s life cover
needs, Discovery Life has succeeded in driving down the cost of life
cover and delivering value for policyholders. The increasing focus on
retirement funding products in the industry provided an ideal context
for the launch of its new-generation retirement Optimiser in June 2005.
More recently, Discovery Life has entered the lower income market with
Discovery Prepaid. The company has partnered with Smartcall, a Vodacom
subsidiary to use prepaid vouchers to allow policyholders to activate
and manage their funeral cover using their cellphones. Discovery Life
covers some 400 000 lives.
Beachhead Media & Investor Relations
A member of the Financial Dynamics International network
Tel: 011 214 2400/06
Cell: 082 561 7172
Fax: 011 214 2405
grant@bmsa.co.za
www.bmsa.co.za
1st Floor, Lumley House, 177 Jan Smuts Avenue, Rosebank
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Date: 20/11/2006 03:52:20 PM Produced by the JSE SENS Department
