Insurance: One million South African policyholders died in a year

Insurance: One million South African policyholders died in a year

A new death claims statistics released by the Association for Savings and Investment South Africa (ASISA), has shown that more than one million South African policyholders died between 1 April 2020 and 31 March 2021.

The data shows an increase in the number of deaths by almost 310 000 from the previous year.

According to Hennie de Villiers, deputy chair of ASISA Life and Risk Board Committee, “These are staggering numbers and there is no doubt that Covid-19 has caused many of these additional deaths, whether directly as a result of a person contracting the virus or because people were reluctant to seek medical attention for other serious conditions”.

“The hard lockdown conditions, curfews and alcohol bans would have reduced violent and accidental deaths.”

Almost R47.6 billion was paid out in death benefits in the year, 64% more than the previous year, De Villiers said.

“The significance of the R47.58 billion in death benefits paid by life insurers in the 12 months to the end of March 2021 becomes evident when considered against the R60 billion paid by the government’s Covid-19 Temporary Employee-Employer Relief Scheme (TERS) to furloughed workers from inception in March last year to July 2021”.

At the end of 2020, the South African life insurance industry held assets of R3.23 trillion, while liabilities amounted to R2.89 trillion. This left the industry with free assets of R333.5 billion, which is more than double the capital required by the Solvency Capital Requirements.

 

Source: News24

Author: Greg