Life insurer Liberty announced that it paid out a substantial R12 billion in death, disability, and income protection claims to over 120,000 beneficiaries throughout 2024. This impressive figure reflects the volume of Liberty insurance claims processed last year. The statistics shed light on evolving claiming patterns. There is a concerning underinsurance gap among women and a notable increase in claims related to lifestyle protection benefits.
Liberty Insurance Claims Surge, Revealing Underinsurance Among Women
The bulk of the payouts, R7.35 billion, stemmed from Liberty’s retail division, which provides policies directly to individuals. This figure represents an 11.8% increase compared with the previous year, reaching almost 28,900 individuals and their families.
A significant observation within these retail claims is the gender disparity. According to Liberty representative Kresantha Pillay, men received nearly two-thirds (64.8%) of all claim payouts. This statistic underscores a critical issue: women in South Africa are considerably underinsured for life and disability cover.
Pillay said over 42% of households are female-headed, and often women are the sole income earner. She highlighted a staggering R15-trillion estimated insurance shortfall for South African women. She cited figures from the Association for Savings and Investment SA (ASISA).
Rise in Lifestyle Protection Claims Indicates Longer Lives with Critical Illnesses
The retail business reported an upswing in claims across all its products. Notably, claims from lifestyle protection benefits increased by 20.4%, totalling R1.2 billion. Liberty suggests this trend indicates that individuals are living longer with critical illnesses. This is partly due to earlier diagnosis and prompt treatment.
Cancer Remains Leading Cause of Liberty Claims
Despite medical advancements, cancer continues to be the primary driver of claims, accounting for 31.2% of the total. Cardiovascular disorders followed at 22.3%. Respiratory disorders (5.8%), musculoskeletal disorders (5.5%), and nervous system disorders (5.3%) collectively make up 70.2% of all claims.
Dr Reinhardt Erasmus, Liberty's Chief Medical Officer, commented on the persistence of these conditions. He stated that the top causes of claims have remained relatively stable. This is despite advances in medicine and the rapid pace of innovation. He also noted that despite improved screening tools, many colon and lung cancers are still detected at late stages. Thus, he emphasised the need to "normalise screening and early intervention.”
Among women, breast cancer accounted for 46.9% of cancer claims. Meanwhile, prostate cancer was the most common for men, representing 31.9% of their cancer claims.
Workplace Stress Linked to Mental Health Claims in the Corporate Sector
Liberty’s corporate business, which provides life cover to employees through their employers, reported that at least 18% of income protection claims originated from the financial, professional, and support services sectors. These industries showed a high number of claims for psychiatric and neurological disorders.
Mangaliso Nxasana, Liberty Corporate Benefits Actuarial Manager, suggested that the work environment could be a contributing factor to these mental health challenges. Nxasana explained that factors such as high stress, long working hours, and job pressure are impactful. The fast-paced nature of these industries could also be a key driver of these mental health issues. This highlights an increasing need for employers to prioritise mental well-being in the workplace.