Between March and August this year, Sanlam Individual Life has paid out over R162 million in COVID-19 related claims. Sickness and income protection benefits amounted to over R17 million claims while death and funeral claims paid out over R144 million.
Petrie Marx, Product Actuary at Sanlam, noted that in August alone, death and funeral claims related to Coronavirus were double the amount paid out for the period March to July. While claims for fatalities were initially relatively low with most claims being for sickness and income protection, claims for death and funeral benefits more recently increased to make up the majority. These trends reflect the acceleration of the pandemic.
Marx highlights the following stats and trends related to Sanlam’s COVID-19 claims:
|●||In line with worldwide experience, more than 80% of total death and funeral claims were for individuals over the age of 50.|
|●||The vast majority – 89% – of claims for sickness and income protection were for individuals younger than 50, reflecting the economically active population.|
|●||Claims for sickness and income protection were heavily skewed towards individuals in medical and health services.|
|●||Death and funeral claims were weighted more towards male clients, again in line with worldwide experience for COVID-19, while slightly more women were affected by sickness and temporary inability to work.|
|●||The majority of sickness and income protection claims were from Gauteng, as the economic hub of our country, whereas most death and funeral claims came from the Gauteng and Eastern Cape – also in a way a reflection of the national statistics.|
“Behind each claim we pay out for COVID-19 and other conditions, is an individual or family for which these payments made a real difference. The COVID-19 pandemic has again made us aware of life’s risks and our own vulnerabilities, as well as the importance of ensuring that you are properly covered to have peace of mind that you can withstand such an unexpected health event in future,” Marx concludes.
Click here to download an infographic showing the COVID-19 claims breakdown from Sanlam.
Last week’s article on ASISA’s statistics commented on the importance of sharing this very important information with clients. Unfortunately, we live in a world where bad news receives much more exposure than good news. The value of the service we render can never receive enough attention and exposure. Please help by sharing this with your clients.