Discovery Insure road safety round table Anton Ossip, CEO and Themba Baloyi, Executive Director

Our roads are not safe A road accident fatality occurs

once every 38 minutes

Source: Road Traffic Management Corporation’s (RTMC) Road Traffic Report for South Africa 2011 published by Swedish Transport Administration http://www.unece.org/fileadmin/DAM/trans/doc/2013/wp1/Nat_Dev-2013-Sweden.pdf Transport Canada https://www.tc.gc.ca/eng/motorvehiclesafety/tp-1317.htm#2

Estimated cost of all road

accidents to RSA economy: 7.8% of GDP

(R307bn) South Africa 27.5

India 9

Russia 23

Canada 6.5

Brazil 18

Sweden 3

Discovery’s core purpose

To make people healthier and

enhance and protect their lives

Discovery Insure’s vision

An insurer that protects people and their possessions,

offering them the most comprehensive and innovative insurance

by using powerful incentives and telematics technology to reduce risk

through improved driving behaviour and advanced safety features,

thereby creating great drivers and safer roads for all.

at the lowest long-term cost,

Discovery Insure road safety round table Themba Baloyi, Executive Director

Good and excellent

The causes are clear: Driver behaviour

55% 25%

of fatalities involve driving

under the influence

of accidents are related to cell phone use

of severe accidents are preceded by

15 minutes of poor driver behaviour

53%

37% 32%

16% 5%

Late night driving

Braking Speeding Accelerating Cornering

drivers have

fewer and less severe accidents

costing us almost

50% less than our poor and

average drivers

60%

Source: Road Traffic Management Corporation’s (RTMC) Road Traffic Report for South Africa 2011 published by Discovery Insure data National Safety Council estimate 2011, US

The causes are clear: Vehicle condition

Over 740 000 cars are either un-

roadworthy, un-licenced or both

Vitalitydrive Annual MultiPoint checks

One in five clients

immediately take steps to improve their vehicle safety

Completed Annual Multipoint check

0%

20%

40%

60%

80%

100%

No Yes

3 times less accidents

Rel

ativ

e ac

cid

ent

rate

Source: Road Traffic Management Corporation’s (RTMC) Road Traffic Report for South Africa 2011 published by Discovery Insure data

Insurance claims are highly correlated to

rainfall

The causes are clear: Environment

Weather Road conditions

Example, Great North Road, M45 Kempton Park

Discovery Insure tracking device data

Harsh braking hotspot

Actual accident

Media reports -

100

200

300

400

500

600

700

0%

2%

4%

6%

8%

10%

12%

14%

Annualised Frequency of Weather Claims

Contents Rainfall

Rainfall Claims

A collaborative approach is needed

Driver behaviour

Vehicle condition Environment

Individual Public Sector

Private Sector

Discovery Insure Insights

1 Incentives improve behaviour

Up to 50% in monthly fuel rewards

Driver behavioural profile

Good

Average

Below average

=

Driver performance

Knowledge & awareness

Vehicle condition & roadworthiness

+

+

DQ

Up to 50% in monthly fuel rewards

Driver behavioural profile

Good

Average

Below average

=

Driver performance

Knowledge & awareness

Vehicle condition & roadworthiness

+

+

DQ

Up to 50% in monthly fuel rewards

Driver behavioural profile

Good

Average

Below average

=

Driver performance

Knowledge & awareness

Vehicle condition & roadworthiness

+

+

DQ=

Poor and average

Good Excellent

Driver improvement over 12 months

Month 1

Month 12 29% 36%

137%

0%

20%

40%

60%

80%

100%

Poor Average Good Excellent

Loss ratio (relative to Base)

Discovery Insure Insights

2 Feedback empowers behaviour change

Driving behaviour Number of events for

June

Number of events for

May

Distance driven 1632.8km 2618.3km

Harsh accelerations 82 128

Harsh braking 1 4

% time speeding 4.6% 15.14%

Weekday late night driving

1 3

Weekend late night driving

1 3

Ranking

You need to improve your driving as you currently rank

in the bottom 25% of all Discovery Insure drivers

Before During feedback campaign

After campaign

Improvement in number of acceleration, braking and cornering events during a pilot

campaign

Young adult benefit drivers have

25% fewer accidents than other under 26 year olds

We give direct feedback to the young adults and their parents

51% 33%

Discovery Insure Insights

3 Education, information and tools reduces risk

“ Yesterday I received the warning SMS from Discovery Insure regarding the hail, I pulled

into the nearest service station under cover.

5 minutes later it hailed GOLF BALL sized hail. If not for that SMS my brand new car would

have been badly damaged.”

Weather alerts Completed online knowledge and awareness activities

0%

20%

40%

60%

80%

100%

No Yes

Rel

ativ

e ac

cid

ent

rate

2-3 times less

Completed online knowledge and awareness activities

Safe driving

Night driving

Anti-hijack course

EyeGym

Peripheral vision

Depth perception

Speed and reaction Dr Sherylle Calder Sports scientist and performance coach

Discovery Insure road safety round table Anton Ossip, CEO and Themba Baloyi, Executive Director

International data USA

Source: http://www.cdc.gov/motorvehiclesafety/local/b/includes/mvcfatalitiesmap/mvcfatalitiesmap.html

East: 7 deaths per 100 000

Best public transportation infrastructure

West: 8 deaths per 100 000 Little public transportation, most well developed student driver education and licensing system

South: 18 deaths per 100 000 Least impactful driver education and licensing system and weak public transport

International data Sweden

Reduced road fatalities by 97% in 20 years

Holistic approach, involving Politicians, Road network managers, Police, Vehicle manufacturers, Transport

procurement (public and private), Health sector, Insurance sector, Industry

“Swedish people now drive more responsibly on the roads and our private sector competes to save lives”

Source: http://www.visionzeroinitiative.com/

International initiatives

40% to 95% more effective than traditional measures

Breathalysers linked to ignition keeping drunk drivers off the roads, for first time and repeat offenders

International initiatives

Luminescent paint charges during the day increasing visibility at night. Paint changes

shape based on weather conditions giving real-

time warnings. Implemented in second

half of 2013

Netherlands