The Affiliation for Financial savings and Funding South Africa (ASISA) has revealed its newest loss of life claims statistics, exhibiting that 1,023,083 policyholders died between 1 April 2020 and 31 March 2021.
The affiliation mentioned that the statistics replicate claims made towards particular person life, group life (supplied by employers), credit score life and funeral cowl insurance policies.
Hennie de Villiers, deputy chair of the ASISA life and threat board committee, mentioned that this represents an increase of 309,733 lives misplaced in comparison with the loss of life claims statistics for the earlier 12 months when 713,350 policyholders died.
“These are staggering numbers, and there’s no doubt that Covid-19 has induced many of those further deaths, whether or not immediately because of an individual contracting the virus or as a result of individuals had been reluctant to hunt medical consideration for different critical situations.
“The hard lockdown conditions, curfews and alcohol bans would have reduced violent and accidental deaths,” he mentioned.
De Villiers mentioned that the beneficiaries of the 1,023,083 policyholders have acquired loss of life advantages of R47.58 billion across all strains of threat enterprise.
This represents a 64% increase in the worth of claims paid by life insurers in comparison with the earlier 12 month interval when R29.08 billion was paid, he mentioned.
This additionally represents a R47.58 billion injection into the nation’s financial system when industries just like the tourism business and the liquor business had been throttled as a result of Covid-19 pandemic ensuing in large job losses.
“The reality is that during a period when job losses and salary cuts reduced retail spending, death benefits paid would have played an important role in supporting the economy,” De Villiers mentioned.
Covid-19 is just not over but
De Villiers mentioned that the most important bounce in the worth of advantages paid was in the person life house, the place life insurers reported a 70% increase.
Within the 12 months to the tip of March 2021, life insurers paid R29.11 billion to the beneficiaries of particular person life insurance policies, in comparison with R17.12 billion in the earlier 12 month interval, he mentioned.
De Villiers mentioned that the best increase in the variety of loss of life claims came about in the funeral insurance coverage house, the place the variety of deaths recorded elevated by 216,705 in the 12 months to the tip of March 2021.
Regardless of the numerous increase in claims paid because of the Covid-19 pandemic, the life insurance coverage business stays resilient and in a position to assist its policyholders and their beneficiaries all through this tough time and past., he mentioned.
“As an business, we anticipate the loss of life claims statistics for the present monetary 12 months to inform a grim story as they’ll replicate the severity of the present Covid-19 third wave.
“While the life industry remains well capitalised and in a strong position to continue paying death claims, no amount of money can make up for the loss of a loved one. We, therefore, urge all South Africans to get vaccinated rather than risk death, severe illness or even potential long-term debilitating side effects often caused by Covid-19.”