Sanlam Risk and Savings paid out R6.62 billion in individual insurance claims in 2024, an increase of 9.24% from the R6.06bn paid out in 2023.
Death and funeral claims accounted for most of the claims paid, at R5.47bn. This was followed by severe illness claims totalling R650.3 million. Disability, loss of income, and impairment claims came to R501.6m.
Sanlam Risk and Savings paid the highest amount in claims in a single year in 2024, except for the peak payout of R8.3bn in the “Covid-19 year” of 2021. Sanlam paid out R6.38bn in 2022, R4.8bn in 2020, and R4.4bn in 2019.
Rhoderic Nel, the chief executive of Sanlam Risk and Savings, said cardiovascular claims remained high last year, and there was “a huge increase” in cancer claims, particularly for young people.
There was a 33% increase in cancer claims for women compared with 2023, and a 26% increase for men, Nel said.
Sanlam saw an increase in claims for different types of cancers, but most notably, breast cancer claims increased by 33%, and prostate cancer claims doubled to 41%.
He said Sanlam continued to see the trend observed last year of an increase in younger clients claiming against disability cover that pays an income. This increase was notable for men aged 16 to 25 years and for both men and women aged 26 to 35.
“Currently, about 24% of all living benefit claims are from clients younger than 35 years old, with increases being seen in income protection claims – up from 15% in 2022 to around 25% in 2024.”
This demonstrates the importance of having cover in place when you feel you are healthiest, Nel said. “When we are younger and in our prime working years, we need to supplement income loss that may result from severe injury or illness.”
Pregnancy and child-birth complications made up 12% of all sickness income claims and 20% of all female sickness income claims last year. Sanlam paid out R12.3m for pregnancy complications under its sickness income benefit. This shows why it is important that women in their reproductive and working years take out sickness and temporary income insurance, Nel said.
Key insights
Here are some of Sanlam’s conclusions from its 2024 claims data:
Death claims
- Cardiovascular disease was the biggest reason for death claims, at 20% of claims. It was followed by cancer (12%), respiratory disease (11%), and accidents (12%).
- Sanlam paid more than 99% of all death claims, and the highest single claim was R36.2m.
Severe illness claims
- Cancer accounted for 54% of all severe illness claims, and cancer claims rose by 30% compared with 2023.
- Severe illness claims were relatively balanced between men (52%) and women (48%).
- Cancer accounted for 44% of severe illness claims from men – of which 41% were for prostate cancer. The two other leading reasons for claims among men were angioplasty (10%) and heart attacks (9%).
- Cancer accounted for 65% of severe illness claims from women – of which 43% were for breast cancer. The two other leading reasons for claims among women were stroke (5%) and angioplasty (3%).
Disability claims
- Cardiovascular and musculoskeletal conditions were the main causes of disability claims, of which 60% were for men.
- Musculoskeletal conditions accounted for 19% of disability claims for women and 18% for men.
Cardiovascular conditions and cancer the main reason for claims
Dr Marion Morkel, Sanlam’s chief medical officer, said lifestyle diseases came through very strongly in the claims data, with cardiovascular disease and cancer the top two causes of death and disability claims.
Cardiovascular disease and cancers were becoming increasingly common among younger claimants.
Morkel said the increases in breast cancer and prostate cancer claims were partly the result of the knock-on effect of the Covid-19 pandemic, which resulted in screenings being delayed for several years.
This year’s data also showed a rise in stroke and musculoskeletal disorders among women, including women aged younger than 50 years.
Although much of the data mirrors that of other countries, South Africa’s hypertension (high blood pressure) rate is among the highest in the world, an early indicator of heart disease and stroke, Morkel said.
She said the increase in claims for diseases that have a good prognosis when detected early puts the spotlight on the importance of regular screenings and checks.
“The World Health Organization recommends that annual health screenings and checks start in our 30s, and we urge South Africans to prioritise these as part of their yearly routine.”
Morkel emphasised the need for the early detection of cancer and heart disease. “Regular screenings and self-checks – especially for breast cancer – are essential. For heart health, know your numbers: blood pressure, cholesterol, glucose, and BMI. And once you reach your mid-40s to early 50s, make regular check-ups a priority.”
Although mental health conditions remain among the top five reasons for disability claims, they have fallen to fourth position, at 12% of disability claims. However, mental health as a supporting condition for diseases linked to lifestyle play a very important role. Some individuals cannot overcome the major hurdle of suffering a stroke or a heart attack to return to the labour market and work, Morkel said.
