Insurance group Sanlam Individual Life has published its claims data for 2021, showing the biggest death and funeral claims for its clients in South Africa.
The group paid R8.24 billion in claims last year – almost double what was paid to clients (R3.9 billion) just four years ago in 2018.
The business also paid 82% more in death and funeral claims in 2021 compared to the year before. While these numbers are a testament to the havoc Covid-19 wrought on society, the pandemic is not the sole driver of the increases.
“It’ll take time to fully appreciate what Covid-19 did – and did not – impact directly. For example, deaths resulting from cancer and heart conditions increased somewhat between 2020 and 2021,” said Petrie Marx, product actuary at Sanlam Individual Life.
“This may be related to the indirect effects of Covid-19, which saw lower levels of routine health checks during hard lockdown, or it may be caused by another factor. This is a trend we will have to watch closely.”
Death and funeral claims
The largest single death claim was R36.1 million, with a total of R7.2 billion paid for death claims in 2021.
Most death claim pay-outs were linked to ‘diseases of the respiratory system’ for men and women. This includes R2.6 billion for confirmed Covid-19 claims and highlights the devastating impact of the pandemic.
While 68% of death and funeral claims were paid to men, the disproportionate statistic may not be all that unusual. Marx said one should consider the fact that men typically tend to pass away earlier than women and that they may have taken out more life cover in the past. However, it is well documented that Covid-19 had a more devastating effect on men. Despite this, men still have lower vaccination rates.
Cardiovascular diseases and cancer round up the top three causes of death claims for 2021.
Severe Illness and disability
Last year, 61% of severe illness claims were from people under 55 years, with cancer making up the bulk of the total claims in this category (53%).
In women, 65% of all cancer claims were for breast cancer, while 25% of cancer claims from men were for prostate cancer. Combined, heart attacks, strokes, and coronary artery bypass graft (CABG) accounted for 32% of severe illness claims by men and 14% by women.
As seen in previous years, these remain the main causes of severe illness claims for men and women in 2021. However, claims were also received for less common causes of severe illness, such as a 49-year-old male mill worker who experienced Grade 2 burn wounds and a 33-year-old woman who suffered a stillbirth.
The leading causes of disability claims related to bones, back, joints and connective tissue (19%), diseases of the nervous system and sensory organs (19%), and cancer (14%).
63% of disability claims were from clients under 55 years – a stark reminder that we need to plan for the worst and hope for the best at any age, Marx said.
Income protection and sickness claims
Covid-19 accounted for 19% of income protection claims. A further R58 million was paid under the sickness benefit for professionals who were booked off work due to Covid-19 – almost double the amount paid in 2020.
In women, Covid-19 accounted for 47% of sickness claims, followed by conditions related to pregnancy, childbirth, and the puerperium (10%) and musculoskeletal conditions (7%). The main causes of sickness claims for men were Covid-19 (61%), accidents (8%) and musculoskeletal conditions (7%).
Professionals in the medical field account for the vast majority (74%) of Covid-19 claims under the Sickness and Temporary Disability benefit, highlighting the risks faced by our heroic frontline workers during the pandemic.
Read: The best and worst-case scenarios for where South Africa is heading right now – and how likely they are to happen
Artmotion S.Africa
