AIA Australia will offer health insurance after forming a partnership with GMHBA and South African financial services provider Discovery.

The joint venture will launch a health and life insurance product later this year called myOwn, bundled with AIA’s Vitality wellness program.

It is the first time an Australian life insurer has moved into health.

Overseas, many life insurers offer life and health insurance products under one brand. Here, the barrier has been legislation against such moves.

Life insurers see health cover as a way to keep clients in good shape and prevent payouts.

Under the deal Victoria-based mutual health insurer GMHBA will offer its members AIA’s Vitality program. It has a client base of more than 400,000 members.

Discovery was founded in 1992, offering healthcare, life, short-term insurance, savings and investment products and wellness programs.

It launched Vitality in 1997, and the program has been taken up globally by insurers such as AIA. Discovery has 6.9 million customers in 16 countries.

“We will bring together the best of each organisation and create a new way to engage with insurance,” AIA Australia CEO Damien Mu said. “It will allow customers to experience the innovative offering and support them to be well, get well and protect their future.

“With myOwn offering life and health insurance linked with AIA Vitality, we will not only help to financially protect but also to improve the health and wellbeing of Australians.”

GMHBA CEO Mark Valena says the joint venture creates a new insurance offering.

“There hasn’t been anything like this available on the market in Australia before,” he said.

Discovery Vitality Group CEO Barry Swartzberg says in South Africa the company has combined the wellness program with health and life products for many years.

“Vitality members have shown vast interest and improvement in understanding their health and how to address health risks,” he said.

“During many years, we have seen that those engaged in Vitality have fewer and shorter hospital stays, and their overall healthcare costs are lower.”