How Vitality is Rewriting the Rules of Life Insurance

In a wide-ranging interview, Discovery Life CEO Riaan van Reenen delves into the significant influence that lifestyle behaviours have on life expectancy and the long-term sustainability of life insurance. Globally, life expectancy stands at around 73 years. In South Africa, even insured individuals fall below this, averaging 67. Yet Discovery Life’s Vitality-engaged members, those achieving gold or diamond status, can extend their life expectancy up to 89 years, thanks to healthier living.

Riaan explains how Discovery Life's shared value model aligns the goals of clients, society, and financial advisers. Clients enjoy lower premiums and rewards like payback benefits, with over R13 billion already disbursed. Society gains through a healthier population, and advisers benefit from better persistency and commission certainty.

The core of this transformation is Vitality’s focus on four key behaviours, tobacco use, poor diet, alcohol abuse, and inactivity, that lead to chronic illnesses like cardiovascular disease, diabetes, cancer, and lung disease. Discovery uses AI to guide individuals on a personal journey through its Personal Health Pathway and boosts rewards through its Personal Payback Booster. These tools not only improve health but also directly reduce mortality risk, as evidenced by a 57% reduction among engaged members.

Looking ahead, Riaan emphasises Discovery Life’s commitment to innovation. They are exploring the use of wearable device data, such as VO2 max, as an early indicator of health risk, creating even more personalized, measurable wellness incentives.

Key Points from the Discussion

• Life Expectancy Disparity: Global average is 73 years; SA insured population averages 67.

• Vitality Impact: Engaged Discovery Life policyholders (Gold/Diamond status) can achieve up to 89 years life expectancy.

• Shared Value Model: Clients, society, and advisers all benefit, over R13 billion in paybacks issued.

• Vitality’s Health Focus: Targets 4 behaviours (smoking, poor diet, alcohol, inactivity) tied to chronic disease.

• Personal Payback Booster: Uses AI to identify personalized next best health actions; available at no extra cost.

• Early Mortality Reduction Evidence: Gold/Diamond Vitality status reduces mortality risk by 57%.

• Future Innovation: VO2 max and wearable data offer new frontiers for tracking and rewarding health.