021 715 7805 info@youve-earned-it.co.za
Old Mutual – Adspace A – YEI Finance page
Feedback

Old Mutual’s risk cover claims pay-out soars to over R14 billion in 2020

Posted By Marilynh / May 24, 2021 / 0 Comments

Old Mutual - top of article

 

Old Mutual announced on the 19th May 2021, that it paid R14 billion in risk cover claims in 2020. The pay-out includes underwritten, non-underwritten and corporate claims and represents a year-on-year increase of 24%.

On releasing its claims statistics for 2020, the group said that several trends relating to the spread of Covid-19 were evident in the new figures. Yet despite a challenging and constantly evolving landscape, it was proud to uphold a total pay-out ratio of 98% in underwritten claims.

John Kotze

John Kotze, Retail Protection Product Head at Old Mutual

“As evidenced in our report, the increasing toll of the pandemic stresses the significance of having sufficient cover in place to protect individuals and their loved ones against the risks of unexpected death, disability, retrenchment or illness,” said John Kotze, Retail Protection Product Head at Old Mutual.

The Old Mutual Claims Statistics Report for 2020 unpacks the group’s underwritten risk cover claims, which total R6.48 billion of the overall amount paid. It also reflects a significant rise of 22%, especially when compared to the previous 3-year average increase of 9.6%. It consists of the following:

  • 17 billion in Death cover claims
  • R871 million in Illness cover claims
  • R436 million in Disability cover claims
  • R13 million in Retrenchment cover claims

 

Causes of claims

While cancer & tumours (23%), cardiovascular diseases (19%) and accidental death (19%) remained the top three causes of death claims paid, Kotze said the sharp rise in the number of people claiming for respiratory system disorders (60%) under death cover was mostly attributed to the widespread Covid-19 infections.

“Conversely, a positive impact of the pandemic was the 27% decrease in the number of motor vehicle accident death claims, almost certainly linked to the extended periods of restricted travel during lockdown,” Kotze adds.

In the Illness cover category, the group saw an 18% increase in the payout amount compared to the previous year. Its pay-out ratio also rose from 89% to 95%. The Big Four illnesses (namely cancer, heart attacks, strokes and coronary artery bypass grafts) contributed to 70% of the illness claims paid in 2020, with cancer still reflecting the largest proportion.

 

Old Mutual - we were there

 

The effects of the pandemic were equally apparent in the Disability cover category, where Sickness Income cover claims increased 3.5 times year-on-year. “The highest cause of claims in this category was under ‘infectious diseases’, the term Old Mutual uses to refer to claimants infected by Covid-19. “This is the first time that ‘infectious diseases’ has shown up in the report in double digits (10%) in the disability income category. What is also worth noting is the 25% rise in the pay-out amount for disability income claims this year.”

Big changes were also noted in the Retrenchment cover category, which revealed a R3 million increase in retrenchment claims (30% increase on 2019). “This is undoubtedly again a consequence of lockdown, which caused many people to lose their jobs,” said Kotze. Within this category, just over a third of claimants were between the ages of 30 and 40, and 76% were male. 

“While 2020 has given us deeper insight into the impacts of the pandemic on our customers and the insurance industry,” said Kotze, “we are certain that the longer-term implications will become even more apparent over the next few years. We will continue to adapt and evolve our protection solutions to meet the changing needs of our customers.”

He concluded: “As a group, we stayed true to our purpose and were there for our customers and communities during an extremely challenging year. In their time of need, we were there to protect what matters most to them and to enable positive futures. Our thoughts and condolences again go out to all the families who have lost loved ones over this difficult period. For those more fortunate, and with the means, but without the necessary protection cover yet in place, the 2020 claims statistics are a rallying call to speak to a financial adviser today.”

 

Click here to read Old Mutual’s 2020 Claims Statistics Report

 

About Old Mutual Limited

Old Mutual is a premium African financial services group that offers a broad spectrum of financial solutions to retail and corporate customers across key markets in 14 countries. Old Mutual’s primary operations are in South Africa and the rest of Africa, and it has a niche business in Asia. With over 175 years of heritage across sub-Saharan Africa, we are a crucial part of the communities we serve and broader society on the continent. For further information on Old Mutual, and its underlying businesses,
please visit www.oldmutual.co.za

 

 

Speak to a financial adviser today
to help you plan for a brighter tomorrow.

Click here to find an accredited financial adviser

Alternatively, please complete the following form
and an Old Mutual Accredited Adviser
will get back to you, without delay

Old Mutual logo

 


You’ve Earned It / YEI (https://youve-earned-it.co.za/),
the digital media platform
for South African over-60s

 

  • Discounts, savings and benefits for baby boomers, seniors, pensioners and retirees

  • Informative and relevant articles geared at the senior market

  • Fab competitions

  • News/views/fun


Sign up for the FREE fortnightly
You’ve Earned It Newsletter HERE
and become a You’ve Earned It / YEI member

 


 

Relevant articles:

Retire right with Old Mutual

When Retirement Is Around The Corner

How to get more money smart?

 

Email to a friend/colleague
Tags: , , , , , ,

Comments

No comments

Leave a reply

Your email is never published nor shared. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.