Prudential and Discovery launch Pru Protection
by Gill Montia
Story link: Prudential and Discovery launch Pru Protection
Prudential has extended it partnership with the South African group, Discovery, to form Pru Protection Holdings, which aims to secure an initial 10% share of the UK life insurance and protection market.
In the next few days, Prudential is launching 25 protection plans covering life insurance, critical illness, income protection and disability insurance.
The policies will be similar to existing Pru Health products, in that customers will gain discounts on their premiums by engaging in a healthier lifestyle.
Pru Health gives its policy holders “vitality” points for joining a gym, giving up smoking and observing a healthy diet.
Further products, aimed at the group protection or corporate market, are scheduled for launch in 2008.
Prudential and Discovery joined forces in 2003 to sell private medical-insurance plans through Pru Health, an earlier joint venture.
The companies have together invested over £70 million in Pru Health and now plan to invest £30m Pru Protection, during its first year.
Discovery was set up in 1992 and holds a 28% share of the South African health-insurance market.
Once Pru Protection is launched, Pru Health will be incorporated into the new business.
Since launching Pru Health in 2004, Prudential has secured a 1.1% share of the UK private medical insurance sector.
However, in terms of new business, it ranks second only to Bupa having sold 130,000 policies.