Old Mutual pays R14. 7 billion in claims

IOL News

5 days ago

Old Mutual reports a significant increase in life insurance claims paid in 2024, totalling R14.7 billion. The data reveals insights into demographic trends, types of claims, and the insurer's commitment to honouring valid claims.
Image: File photo.
Financial services provider Old Mutual has reported a total of R14.7 billion in risk-related claims paid during 2024, representing a 4.3% increase compared to the R14.1 billion paid in 2023. This is according to its latest annual claims statistics report.
Approximately half of the total payout, amounting to R7.3 billion, was attributed to claims on underwritten risk policies. A further R4.4 billion was paid through corporate group risk policies, while R2.9 billion was paid out on non-underwritten risk policies.
Old Mutual says it paid out 98% of death claims and 95% of all underwritten claims, which include benefits for death, disability, and severe illness.
Old Mutual's executive head of protection, Kavir Ramjee, believes these figures help dispel the notion that insurers are reluctant to settle claims.
'We view every claim as a promise kept, a reflection of our deep commitment to our customers. In 2024, we honoured this commitment by paying out about R29 million every working day on average in underwritten policies and thereby ensuring financial support when it matters most,' he says.
A breakdown of benefits by product line shows that R6.2 billion was paid in death benefits, R297 million in disability benefits (inclusive of income and lump-sum payments), and R888 million in severe illness cover. Non-underwritten cover, largely consisting of funeral policies, accounted for R2.9 billion, while R4.4 billion was allocated to corporate group benefits.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad loading
Demographic data from the report reveals that 62% of claims are related to individuals aged 60 and above, 30% to those between 40 and 59 years, and 8% to claimants under the age of 40. The gender split showed that 58% of claims were for men, compared to 42% for women. The average claim age was 61 for men and 59 for women.
'While it is true that younger individuals are statistically less likely to experience a risk event, the notion that they are invincible is simply not supported by our claims data. The ASISA Gap Study (2022) shows that people under 40 are significantly underinsured, and our own statistics highlight why this is concerning. For instance, one of our youngest breast cancer claimants was just 31 years old. It's a stark reminder that life-altering events can happen at any age, and early financial protection is crucial,' says Ramjee.
Old Mutual's data further indicates that non-communicable diseases continue to dominate claims related to illness and disability. In 2024, 73% of all severe illness claims were linked to cancer, heart attacks, strokes, and coronary artery bypass procedures. Breast cancer and prostate cancer were the most common conditions among women and men, respectively. Two-thirds (66%) of breast cancer claims involved women aged between 40 and 60, while 46% of prostate cancer claims came from men in their 60s.
'Most of our severe illness claims are linked to non-communicable diseases like cancer, heart disease, and stroke. Non-communicable diseases typically have prolonged durations and arise from a combination of genetic, physiological, environmental, and behavioural factors. While we can't change our genetic risk, lifestyle and environmental factors play a huge role, and that's where early screening and healthier habits can make all the difference,' Ramjee says.
For disability lump-sum claims, musculoskeletal disorders (21%), central nervous system disorders (18%), and cancer (15%) remained the leading causes. Musculoskeletal issues also accounted for 51% of disability income claims.
Reflecting on the broader significance of these figures, Ramjee noted the emotional and social role that insurance plays during life's most difficult moments.
'These policies, funeral, life, and disability policies, etc, are more than just financial products; they represent a promise of dignity, protection, and peace of mind for loved ones when life takes an unexpected turn. Therefore, our claims statistics are not just numbers; they are a reflection of that promise being honoured,' he says.
PERSONAL FINANCE