Dis-Chem Life sets a new course in South Africa's life insurance landscape

Dis-Chem Life CEO, Greg Smith, has said that the new entrant was carving out a bold new path grounded in ready accessibility, smart technology, and deep integration within South Africa’s largest pharmacy and healthcare retail network.

The pharmaceutical company recently acquired about 50% of OneSpark, an insurtech startup, for R155.9 million. The merged Dis-Chem Life entity launched in February this year, gearing to capitalise on Dis-Chem’s expansive footprint across South Africa.

Smith told Business Report in an interview this month that business has been steady over the first few months of operation as Dis-Chem Life. He also disclosed that the company is looking to expand from within the Dis-Chem ecosystem.

“Our growth starts from within...the biggest growth is within our own network. Now with over 350 Dis-Chem stores across the country—and many more planned—our physical footprint is one of our most valuable assets,” Smith said.

From wellness clinics to pharmacies and retail aisles, Dis-Chem pharmaceutical stores provide brand visibility for Dis-Chem Life in addition to the usual healthcare services. This means that Dis-Chem Life’s work and processes to secure new clients is cut out.

“We don’t need to go out and find new customers—we already have a base of over 15 million people who know and trust the Dis-Chem brand,”explained Smith.

Although now trading as Dis-Chem Life, the company remains focused on its original principles of democratizing life insurance through offering affordable life insurance for income groups in the country.

From the beginning, said Smith, OneSpark was able to build products that could compete with anyone in the market. The Dis-Chem footprint, technological clout and a large stack of client and customer data is further enhancing prospects for the company as it operates against bigger players.

“Now we have the technology, the retail footprint, and the data to deliver value where it’s needed most. We’ve already seen strong early uptake,” said Smith.

Smith has almost always been an insurance man. His role as CEO of Dis-Chem Life is backed by his extensive experience as an actuary and insurtech entrepreneur.

A former top actuarial student at Wits University, he played a key role in developing more than 50 groundbreaking insurance products at Discovery. As the founder of OneSpark, he was in 2022 named one of the Top 10 Most Inspiring Global CEOs.

The merged Dis-chem Life enables it to operate at a bigger scale while retaining the initial a startup mindset. This means that Smith and his team at Dis-Chem Life can still continue to push innovation boundaries, moreso with better resources and a trusted brand.

Smith is aware though that the bigger traditional players in the South African life insurance sector have strong brands and other legacy advantages. The disadvantage they have was that these traditional operators also with rigid models that curtail their approach to innovation.

“We are agile, we innovate constantly, and we have designed products that are genuinely simple, valuable, and rewarding.”

The company was currently roping in innovations to do with payment systems, access, and rewards. 

With chronic diseases linked to lifestyles causing 20% of deaths among South Africans aged 35 to 64, Smith argues that insurance should be structured to incentivise better health management while providing comprehensive financial protection. This kind of approach was proving to be central for the company’s growth and ambitions.

“For example, our reward structures aren’t points-based—they’re tangible, cash-in-hand discounts at the till. It’s real value you can feel immediately.”

Although Smith could not disclose current user numbers for Dis-Chem Life more than three months since launch, he said the newer company was operating with momentum.

“Within just a few months, we were talking about tens of thousands of inquiries. Our growth has been exponential.”

Currently, Dis-Chem Life is present in around 20 stores with in-store advisors, with plans to scale to 200 by year’s end. 

“We are seeing phenomenal uptake,” he said.

BUSINESS REPORT