By Alec Hogg
When Sandton-headquartered Discovery expanded into the global arena, it intended transforming medical insurance, a field it dominated at home. After a billion rand bath in the US and struggling against a free competitor in the UK (National Health), CEO Adrian Gore and his team did some deep reflection and changed tack. With devastating results.
Discovery’s focus changed to expanding the revolutionary Vitality loyalty programme by smart partnerships. Latest of these came yesterday when Generali Vitality was launched in Germany – the first step in the keep-yourself-healthy incentive programme’s European rollout. Generali, founded in 1831, is the world’s 8th biggest insurance company with a dominant market position in Western, Central and Eastern Europe.
The deal virtually closes out Vitality’s global footprint after earlier deals with Generali-lookalikes in North America (John Hancock), China (Ping An) and Asia (AIA). Discovery is going it alone in the UK after opportunistically buying out Prudential, its local partner in the first Vitality joint venture.
Students of business quickly learn how success stems from achieving the right balance. Obviously in the rate of growth and allocation of resources. But even more critically, in the delicate playoff between sticking to the game plan and knowing when to cut your losses. Discovery did just that and started again. Following Kenny Rogers’s advice to “know when to hold ’em. know when to fold ’em…”
