“SA life insurers paid out more than half-a-trillion rand in benefit claims in 2020 as Covid-19

took a heavy toll. Claims and benefit payments to holders of life cover policies rose 6.5% to R522.7- bn in 2020, up from the previous year’s R491-bn, according to long-term insurance statistics released by the Association for Savings & Investment SA (ASISA).” – Business Day (9 March 2021).

According to Asisa’s figures life industry recorded 434 216 death claims in 2020, or almost 37% more than the 317 442 claims in 2019.

The Covid-19 pandemic has prompted insurers such as Momentum Metropolitan and Old Mutual

to increase their provisions for claims.

Old Mutual has announced that it expects profit to drop as much as 60% in the year to end-December after it had to set aside almost R4-bn to cover Covid-19-related claims.

 

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