PODCAST | Dis-Chem strategy to disrupt life insurance market

Dis-Chem's entry and investment in building an insurance unit is the focus of this edition of Business Day Spotlight. 

Host Mudiwa Gavaza is joined by Greg Smith, CEO of Dis-Chem Life. 

In February, pharmacy chain operator Dis-Chem launched a life insurance offering, known as Dis-Chem Life. 

The group is aiming to capitalise on the lucrative insurance sector, pushing to stand out by removing barriers that have traditionally kept many consumers from participating in the market. 

The offering leverages the group’s 350 retail locations in SA, servicing an estimated 15-million customers, as well as its online presence. 

Smith says the financial reality of inadequate life cover is significant. 

“Many South Africans don’t have enough life or disability cover to protect their families. If the main breadwinner passes away or becomes disabled, their loved ones could struggle to afford daily expenses, school fees, or even a home.” 

“According to the National Institutes of Health (NIH), 20% of deaths among South Africans aged 35-64 years are due to chronic diseases linked to lifestyle. Yet, most people are underinsured, leaving their families vulnerable when they need support the most.”

Topics of discussion include the rationale for Dis-Chem entry into life insurance; the group’s financial services ambitions; making use of various distribution channels; and the importance of data for an insurer.   

In August 2024, Dis-Chem acquired a 50% stake in OneSpark, a life insurance and funeral cover provider, for for R155.9m. This adds to the prior acquisition of Kaelo, which provides medical insurance and gap cover. 

The group is using the capability gained from these deals as the foundation for its broader financial services ambitions in healthcare.

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Business Day Spotlight is a MultimediaLIVE Production. 

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