Discovery Insure – not what you think it is

Dicovery has launched a short-term insurance product, called Discovery Insure.  Why am I bothering to comment on this?  Because they promise to pay you back up to 50% of your petrol spend in return for “good driving behaviour”.  This is supposed to reduce the number of deaths on South African roads.  Sounds pretty cool, huh?  Well, it won’t work.

The reason is simple:  Who will buy this insurance?  Financially sophisticated, affluent people.  Who causes the majority of the deaths on South African roads?  Drivers of un-roadworthy vehicles such as minibus taxis and drunk drivers who don’t care about how much petrol they won’t be getting back by the time they’re getting behind the wheel.

So all this really is is a lovely marketing stunt designed to attract the type of people who think they’re going to get back more in petrol than what they’re paying extra for insurance and get the warm and fuzzies from thinking they’re helping to save lives.  I think it’s pretty clever, and it might well take off.  Well played, Discovery!

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