Discovery Insure’s latest Drive Trends Report reveals that fuel price hikes have implications on South Africans’ daily lives. Many consumers are spending more at the pump than they used to but getting fewer litres of fuel in total. It is no surprise then that many are taking fewer work trips per month. The data also reveals interesting findings into driving behaviour in different provinces and speeding behaviour - showing an increase in speeding incidents, especially on weekends. The Drive Trends Report, released on 30 November 2023, analysed the driving behaviour of over 240,000 drivers on Discovery Insure’s Vitality Drive programme. The data, gathered between January and October 2023, resoundingly confirms that clients’ purchasing behaviour changes when the fuel price changes. The latest data shows that when the fuel price is around R22 per litre, the average client spends around R1,950 per month. However, when the fuel price increases above R24 per litre, clients spend around R2,150 each month and get almost 3 litres less in fuel. In the current environment, this puts additional financial pressure on clients and by extension, on South Africans. “Discovery Insure is helping clients beat the increasing cost of fuel by rewarding them with up to 50% of their fuel spend back for driving well. So, when the price of fuel goes up clients can earn more in fuel rewards every month,” says Robert Attwell, CEO at Discovery Insure. Given the financial pressure many are facing, it was not surprising to see that there is a change in consumer driving behaviour. On average, clients are now taking 5 less work trips per month compared to one year ago. Provinces with denser traffic conditions have higher fuel consumption. The data also shows that clients in Gauteng, the Western Cape, KwaZulu-Natal and the Eastern Cape have an average fuel consumption that is nearly 1 litre per 100km more than that of clients in the other provinces. This is a result of worse traffic in these regions compared to other provinces. When it comes to fuel efficiency, i.e., how much fuel is consumed per kilometre driven, Limpopo drivers top the charts with an average fuel consumption of 6 litres per 100km. By comparison, if Gauteng drivers had the same fuel efficiency as Limpopo drivers, they could save almost 20% of their fuel bill every month! Western Cape drivers and women speed the least. Discovery Insure’s Vitality Drive programme has been using telematics to measure driver behaviour for more than a decade now. It rewards clients for driving well through incentives that include the most competitive cash back on fuel spend in the market. Vitality Drive clients earn points based on how well they drive. The more Vitality Drive points a client earns, the higher their Vitality Drive status, and the more rewards and benefits they get. Clients start each day with 60 points, and, using the principle of loss aversion, Discovery Insure deducts points throughout the day for poor driving behaviours such accelerating, braking and cornering harshly, as well as cell phone use and speeding. Of these driving behaviours, the Drive Trends Report reveals that speeding is the worst driving behaviour among clients, as drivers lose most of their points for driving too fast compared to other poor driving behaviours. Drivers who claim lose as much as 83% more points from speeding than those who don’t claim. The data also showed that people speed 50% more on weekends compared to weekdays suggesting that less traffic could contribute to this behaviour. People aged between 30 and 35 speed the most. “This data is powerful because it tells a story. Speeding remains stubbornly high. It is concerning to see from the data that many South Africans, particularly those in their early to mid-thirties, still tend to drive too fast on our roads,” says Attwell. Alongside the fuel price and its financial constraints implications, the report also confirms something else many of us already knew: It shows that Western Cape drivers and women, nationally, speed the least. “In fact, women lose 30% less points for speeding compared to men,” says Attwell. Most people leave for work at 6:45am, and they can optimise their ETA. Attwell adds that the Drive Trends Report shows that on weekdays, the peak driving time for the morning is 6:45 am, indicating that most people start work, in-office, between 7am and 8am. He also notes that, using Discovery’s data, South Africans can optimise their workday estimated time of arrival (ETAs) by changing their departure time. Instead of starting a trip between 7am and 8am, drivers can spend 14% less time on the road by leaving the house between 6am and 7am, and 11% if they leave after 8am. We all know that every minute stuck in traffic counts, especially during load-shedding and with the price of fuel. The Vitality Drive programme continues to help shift driving behaviours for the better through clients’ engagement, and not only does Vitality Drive help make our roads safer, but a much-needed fuel cash back benefit also helps clients’ wallets. “Discovery has paid over R1.8 billion in fuel cash back to drivers”, says Attwell. “Along with the latest Drive Trends Report findings – which give valuable insight so we can create better experiences and products for our clients – Vitality Drive provides tangible value, like easing the impact of the fuel price, and ultimately, helping to drive change.” If you would like to add Vitality Drive to your policy please contact Nigel email: service@daberistic.com tel:(011)658-1333 Source: Discovery Insure
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This month, we celebrate Women’s Day in South Africa as well as women increasingly taking charge of their financial futures. As a woman, working in the financial industry, I can attest to how it has enriched my life. Yes, I have been faced with challenges as a woman in the industry, but it has also been a greatly rewarding journey to be not only financially empowered but also to be a woman in a leadership role within the industry. Allan Gray has informed us that, clients who are active users of secure Allan Gray Online (AGO) accounts will no longer receive the below documents via email. Instead, they will notify you when these documents become available online:
This is with the aim of improving the security of clients’ personal information. How clients can view and download these documents online Once you have logged in to your secure online account at www.allangray.co.za, you can navigate to the ‘Statements & documents’ tab, where you will then be able to select the relevant document you would like to view or download. If you have any questions or feedback, please contact us on 011-658-1333 or email us at service@daberistic.com Load shedding, or power outages, has become a daily reality. South Africans' favourite app is EskomSePush (ESP) which is used to check the latest load shedding stage and load shedding schedules. So how does a household cope with load shedding in South Africa? 1. Invest in Backup Power Solutions: Investing in a generator or solar backup power system can help provide electricity to your home during load shedding. Generators are the most common form of immediate power backups and can be set up fairly quickly and easily. Solar backup systems can provide the long-term reliability you need, while using renewable energy sources. 2. Use Power Saving Appliances and Devices: A lot of electricity can be saved by using energy efficient appliances and devices. Switching to LED light bulbs, automated power strips and smart outlets can help save energy and money in the long run. 3. Invest in Uninterruptible Power Supplies: Uninterruptible Power Supplies (UPS) are essential for essential household equipment such as computers, routers and telephones. They provide power for a limited period after a power cut so you can stay connected and work efficiently. 4. Insulating Your Home: Heat sensitive equipment such as freezers and fridges should be insulated with material such as bubble wrap to ensure their contents can remain cool during a power cut and reduce the amount of power required to restart them once the electricity returns. 5. Plan Ahead: Stocking up on essential food items, storing enough water, and setting up a makeshift ‘life support’ system with enough cell phone and laptop chargers, can help you cope with load shedding. Making sure you have all of the necessary items prepared and ready beforehand can really help. Welcome to 2023 – a new year and a blank slate of 12 months, 52 weeks, 365 days, 8760 hours and 525 600 minutes to make changes, take on new opportunities and set new goals. We all kick off a new year with certain resolutions in mind, such as eating healthy and exercising more. More often than not, it’s not just our dress or pants size that feels a bit tighter than before the holiday indulging, but also our purse strings. Too many people are left with more month than money after holiday spending, with January probably feeling the hardest. Whether or not you have an extra dime to spend at the end of a year, or perhaps at the start of this new one - by means of employee rewards (such as a bonus), or by not spending all you set aside for the holiday gifting season - why not use the start of the new year to get that savings mindset into gear. If you have overspent, drawing on the below tips in the new year is even more important. We as an accredited financial advisor can assist you in opening a Discovery Bank account. So which Discovery Bank product is right for you? Discovery Bank in South Africa is the banking brand of Discovery Group, a well-known South African-founded financial services organisation. It was established with the approval of the South African Reserve Bank in 2016. In the past three years, it has been actively growing its mass affluent client base, and now has more than 1 million customers. Here we explain the prerequisites for applying for a Discovery Bank account, as well as the key features of Discovery Bank products. The advantages of Discovery Bank Discovery Bank is a digital bank that focuses on the use of user-friendly technology and powerful security features, allowing customers to safely operate various banking and financial functions on their mobile apps, including: - Checking account balances - Opening a new savings account - Opening a new fixed deposit account - Opening foreign exchange accounts (USD, GBP, EUR) - Opening tax-free savings account - Earn Discovery Miles - View financial portfolio summary on all products you have with Discovery, including Life, Invest, Health and Insure. Discovery Bank is a financial behavioural bank, using gamification to help customers improve financial discipline and financial wellness in the following five areas: savings, investment, real estate, retirement, and debt. If the customer closes all five rings, he will reach the Diamond Vitality Money status, enjoying the best interest rates on positive balances and deposits, and earn the most Discovery miles. Discovery Miles is a virtual currency that can be used to shop online, buy airline tickets, exchange for coffee or game points. Discovery Bank gives interest on account balances. WIth the traditional Big Four banks, there is no interest paid on the positive balance in the transaction account or cheque account. Discovery Bank disrupts the market and allows customers to earn interest on the positive balances of the credit card or transaction account. This gives more money to customers. Disadvantages of Discovery Bank There are no physical branches, and all transactions must be performed on mobile phone app or on the website by customers. If you encounter any problems, you must contact the customer service centre of the bank. Prerequisites for applying for a Discovery Bank account - Customers are already familiar with using the mobile apps of mainstream South African banks such as FNB and Standard Bank to view accounts, download statements, and transfer funds. - Customer has a South African ID card or green ID book. - The client has an annual income of at least R100,000. - Proof of residential address (not older than three months) - Three-month bank account statements showing regular monthly income deposits at a bank. Discovery Bank Products Discovery Bank has four tiers, from Gold, Platinum, Black to the highest level Purple. Gold tier requires an annual income of R100,000 to R350,000. The products, monthly fees and benefits are as follows: Customers can choose to only open a transaction account, credit card account or package (Suite, including both transaction account and credit card). Platinum tier requires an annual income of R350,000 to R850,000. The products, monthly fees and benefits are as follows: Customers can choose to only open a transaction account, credit card account or package (Suite, including both transaction account and credit card). Black tier requires an annual income of R850,000 to R2,500,000. The products, monthly fees and benefits are as follows: Customers can choose to only open a transaction account, credit card account or package (Suite, including both transaction account and credit card). Clients have access to six airport lounge visits a year and Airport Priority Fast Track. Purple tier requires an annual income of more than R2.5 million. The package, monthly fees and benefits are as follows: Customers can enjoy unlimited airport lounge visits and Airport Priority Fast Track. If you are interested in opening a Discovery Bank account, please email service@daberistic.com with your name and cell number.
Record-high fuel prices in South Africa Orlik (2022) states that South Africa has faced one of its toughest economic slumps, due to the COVID-19 pandemic. Lockdown restrictions had a massive impact on the economy of the country. Many consumers are still facing the financial impact and struggling to keep head above water. South Africa has also seen fuel prices hit a record-high in the first six months of 2022. Fuel prices are mainly affected by two components (BusinessTech, 2022): 1. The rand/dollar exchange rate 2. Changes to the costs of international petroleum products, primarily driven by oil prices Russia’s invasion of Ukraine has a massive impact on the fuel price increase as well. According to André Thomashausen, an emeritus professor of international law at Unisa, fuel prices could continue to rise to over R40 per litre, in the worst-case scenario (Prior, 2022). On top of this, consumers also must pay more for public transport, food and other services, all affected by the increase in fuel price. Consumer are facing even more pressure to survive in trying times. 10 tips to help your tank last longer There must surely be ways to save fuel during these tough economic times with fuel prices continuing to rise. Saving fuel is something we can all benefit from. After all, who would not want their tank of fuel to last longer? Vitality Drive helps clients save on fuel Click here to read more
If you would like to Apply for Vitality Drive or Do a comparative quote contact Ed in our Short-term department email: service@daberistic.com tel (011)658-1333 Source: Discovery Insure |
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January 2025
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