Momentum Life’s latest claims data points to a growing dual threat this summer: a rise in skin cancer diagnoses and a widening critical illness insurance gap that leaves most South Africans financially exposed. For financial advisers and intermediaries, this is an opportunity to strengthen client conversations about risk protection and long-term resilience.
According to Momentum Life, skin cancer now accounts for 21% of its cancer-related critical illness claims, second only to breast cancer. The insurer noted that South Africa continues to record some of the highest melanoma rates globally, underscoring the importance of early detection and regular skin checks. It positioned skin cancer as “the risk you can see” – in contrast to the unseen financial consequences that follow a severe diagnosis.
The insurer’s 2024 claims data further shows that cancer, across all forms, drove nearly 45% of its critical illness payouts during the year. Yet, despite this prevalence, the protection gap remains stark. The 2024 ASISA Insurance Gap Study found that South African income earners face an 85% critical illness insurance shortfall, with only about a quarter holding any form of cover.
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This aligns with separate findings from the Bureau of Market Research, which reported that only 7% of households have critical illness insurance – highlighting how limited financial cushioning is outside higher-income groups.
George Kolbe, the head of marketing and enablement at Momentum Life Insurance, said the data reflects a growing misalignment between the health risks clients face and the cover they hold.
“Critical illness is not a distant risk – it’s a financial reality many families face,” he said.
Kolbe added that although survival rates have improved, “recovery often comes with significant financial strain. Critical illness cover ensures that medical recovery is matched by financial stability.”
What FSPs can leverage in client discussions
The summer season is an opportunity for advice professionals to pair the familiar health-safety narrative (sunscreen and skin checks) with a broader conversation about financial preparedness. The insurer highlighted three areas advisers can emphasise:
- Positioning critical illness cover as a second line of defence
Just as sunscreen shields physical health, critical illness cover protects financial well-being. The lump-sum payout can assist with treatment, travel, homecare, or costs not covered by medical schemes.
- Preparing clients for the hidden costs of recovery
The insurer referenced the concept of “financial toxicity” – the ongoing expenses and income disruption following treatment. Advisers can use this as a practical entry point to demonstrate why emergency savings alone seldom suffice.
- Reviewing family-wide cover
Some policies include child benefits at minimal or no additional cost. Younger individuals are not immune to serious illness, and FSPs can help families to ensure protection across age groups.
Early detection and early planning go hand in hand
Momentum also reminded advisers that certain early-stage diagnoses may qualify for a payout, depending on policy definitions and severity criteria. The insurer positioned this as a compelling reason for clients to review their cover proactively rather than reactively.
As the peak holiday period begins, the insurer encouraged consumers to reassess not only their sun-safety habits but also their financial protection. For advisers, this seasonal context may offer an accessible, relatable hook to prompt a fresh review of clients’ risk portfolios – particularly where gaps remain significant.
