South African insurer Old Mutual paid out R14.1 billion in claims for 2023. Picture: Karen Sandison / Independent Newspapers
South African insurer Old Mutual has paid out R14.1 billion in long-term insurance claims for 2023.
John Kotze, head of Product, Old Mutual said: “This means that every working day, we paid out an average of R57 million to ensure that our customers and those they love are protected when they need it most.”
The insurer said that for underwritten policies where customers answered medical questions and/or had medical tests done, 95% of submitted claims were paid out, which amounts to more R7 billion.
Old Mutual said that the majority of the claims that were paid out came from deaths. A staggering R5.6 billion was paid out for death claims.
Traumas are the biggest contributor to death claims and make up 30% of all claims.
This includes shooting accidents, crime and violence, and motor vehicle accidents, with the latter making up 43% of trauma claims. Six percent of the death claims were due to suicide.
“Unfortunately, many trauma claims are a consequence of the current South African environment in which people find themselves,” Kotze said.
R926 million was paid out in illness claims. Forty-five percent of these claims were due to cancer and tumours. Disability claims were valued at R477 million and were mostly due to muscular-skeletal disorders.
The insurer said that they paid out R108 million in terminal illness claims to customers while they were still alive so they could make the most of their time with their loved ones.
The average age for claims from women and men was 60 and 61, respectively. According to Old Mutual, men had a higher proportion of claims at 60% in comparison to the 40% of claims that came from women.
Only 5% of underwritten claims were not paid out for reasons that range from non-disclosure to fraud.
Kotze urged customers to ensure that the insurer has all the right information to charge an accurate premium so risk is covered and Old Mutual can settle any claim in the future.
IOL Business