Old Mutual paid out R14.7 billion in risk claims last year, 4.3% more than the R14.1bn it paid in 2023, its claim statistics show.
About half of the total payout value (R7.3bn) was for claims on underwritten risk policies, R4.4bn on corporate group risk policies, and R2.9bn on non-underwritten risk policies (mainly funeral cover).
Of the R7.3bn in underwritten claims, R6.2bn was paid in death benefits, R888 million in severe illness benefits, and R297m in income and lump-sum benefits.
Death claim payouts spiked in 2021, reaching R9.73bn, an increase of more than 88% from R5.16bn in 2020, largely because of the impact of Covid-19. Payouts subsequently normalised, with R5.88bn in 2022 and R5.62bn in 2023.
Old Mutual paid out 95% of all underwritten claims, and 98% of death claims.
The average age for death benefit claims was 64 for men and 63 for women. The youngest male claimant was 19 and youngest female claimant was 17.
Across all underwritten products, 62% of claims related to people 60 years of age and older, 30% aged 40 to 59 years, and 8% were younger than 40 years.
Claims for men were more than claims for women – the ratio was 58% men and 42% women. The average claim age for men was 61 years, while the average for women was 59.
“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,” said Kavir Ramjee, Old Mutual’s executive head: protection.
“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,” said Ramjee.
Severe illness claims
The “big four” illnesses (cancer, heart attacks, strokes, and coronary artery bypass grafts) made up 73% of all severe illness claims in 2024. Cancer accounted for 68% of claims, heart attacks for 15%, strokes for 11%, and coronary artery bypass grafts for 6%.
The most common forms of cancer claims were breast cancer and prostate cancer. Two-thirds of breast cancer claims (66%) were from women aged between 40 and 60 years, while almost half of prostate cancer claims (46%) were from men in their 60s.
The average age of severe illness claimants was 58 for men and 54 for women. The youngest male claimant was 25 and youngest female claimant was 23.
There were more male and female claimants – 54% and 46%, respectively.
Commenting on the claims related to non-communicable diseases (chronic diseases that are not transmissible from person to person), Ramjee said: “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.”
Old Mutual paid out 80% of severe illness claims last year. The reasons for claim rejections were the benefit definition not being met, non-disclosure, fraud, suicide exclusion, and underwriting and general exclusions.
Disability claims
The top three conditions behind disability lump-sum claims have been consistent over the past three years: musculoskeletal disorders (21%), central nervous system disorders (18%), and cancers (15%). More than half (51%) of disability income claims were for musculoskeletal disorders.
The ratio of male-to-female claimants was 59% to 41%.
The average age of disability claimants was 50 for men and 48 for women. The youngest male claimant was 21 and youngest female claimant was 27.
Old Mutual paid out 86% of disability claims last year. The reasons for claim rejections were the benefit definition not being met, underwriting exclusions, non-disclosure, and fraud.