Despite intensified efforts to protect R1.6-billion in life insurance policies and investments, fraud continued to cost the financial services industry R133.2-million, with growing concerns about murder for insurance payouts.
The Association for Savings and Investment South Africa (ASISA) released fraud statistics on Wednesday showing that its members detected a 16% decline in fraud and dishonesty cased in 2025 compared to the previous year.
While there is a reduction in reported cases, financial losses increased from R131.6-million in 2024 to R133.2-million in 2025.
Murder for payouts a growing concern
READ: Nurse, gardener get life for murdering daughter in R6m insurance fraud plot
Jean van Niekerk, convenor of ASISA forensic standing committee, says the industry continues to face several forms of fraud, including fraudulent insurance claims, commission-related fraud, identity theft and attempts to access investment funds unlawfully.
He says one of the biggest concerns in murder for the benefit of payouts, warning that such crimes go beyond conventional financial fraud.
“While murdering someone for an insurance payout involves an act of fraud, the seriousness far transcends that of typical financial crimes like remuneration fraud, material non-disclosure and identity theft,” says van Niekerk.
ASISA forensic standing committee is compiling a detailed analysis of confirmed and suspected murder-for-payout cases and has commissioned research into the factors driving the crime and possible interventions by insurers and law enforcement agencies.
Insurance fraud cost grows
READ: Asisa reveals SA life insurers’ assets surpass R5tn
According to the statistics, remuneration fraud remains the biggest category with 9 9291 cases in 2025, although this was down from 9 904 in the previous year.
The fraud typically involves call centre agents, tied agents and independent financial advisors attempting to benefit unlawfully from commissions and fees. The financial cost of remuneration fraud increased to R26.2-million in 2025 from R19.2-million in 2024.
Fraudulent and dishonest life insurance claims also present growing financial concern with the number of cases declining from 5 505 to 3 854 but the actual value or losses increasing from R39.1-million to R54.9-million.
Fraudulent withdrawals and disinvestments from investment accounts record 329 cases, compared with 274 in 2024. Despite the increase in incidents, financial losses show a decline from R44.3-million to R34.6-million.
Another area of concern is fraud targeting deceased estates, where criminals impersonate legitimate parties, fabricate letters of executorship and open fraudulent bank accounts in beneficiaries’ names.
Fewer fraud cases in 2025
However, the industry appears to have made progress in addressing this form of fraud, with cases falling from 161 in 2024 to 43 in 2025.
READ: Insurers paid out R44.2bn in death-related claims in 2025
Van Niekerk attributed the reduction to interventions introduced by the industry, including an Estate Late Fraud working group, information-sharing arrangements between insurers and awareness campaigns aimed at consumers and financial services staff.
An Information Sharing Working Group has also been established at the beginning of 2026 to explore an industry-wide system that would allow members to share information lawfully to identify and prevent fraudulent activity more effectively.
- In 2025, fraud cost the South African financial services industry R133.2-million, up from R131.6-million in 2024, despite a 16% decrease in reported fraud cases.
- ASISA's fraud statistics report remuneration fraud as the largest category with 9,291 cases in 2025, though down from 9,904 in 2024, and losses increasing to R26.2-million.
- Fraudulent life insurance claims cases decreased from 5,505 in 2024 to 3,854 in 2025, but the associated financial losses grew from R39.1-million to R54.9-million.
- Cases of fraud targeting deceased estates dropped from 161 in 2024 to 43 in 2025, attributed to industry interventions like the Estate Late Fraud working group and increased awareness efforts.
- ASISA is compiling detailed research on murder-for-insurance-payout cases and has established an Information Sharing Working Group in 2026 to improve fraud detection and prevention.
Despite intensified efforts to protect R1.6-billion in life insurance policies and investments, fraud continued to cost the financial services industry R133.2-million, with growing concerns about murder for insurance payouts.
The Association for Savings and Investment South Africa (ASISA) released fraud statistics on Wednesday showing that its members detected a 16% decline in fraud and dishonesty cased in 2025 compared to the previous year.
While there is a reduction in reported cases, financial losses increased from R131.6-million in 2024 to R133.2-million in 2025.
READ: Nurse, gardener get life for murdering daughter in R6m insurance fraud plot
Jean van Niekerk, convenor of ASISA forensic standing committee, says the industry continues to face several forms of fraud, including fraudulent insurance claims, commission-related fraud, identity theft and attempts to access investment funds unlawfully.
He says one of the biggest concerns in murder for the benefit of payouts, warning that such crimes go beyond conventional financial fraud.
“While murdering someone for an insurance payout involves an act of fraud, the seriousness far transcends that of typical financial crimes like remuneration fraud, material non-disclosure and identity theft,” says van Niekerk.
ASISA forensic standing committee is compiling a detailed analysis of confirmed and suspected murder-for-payout cases and has commissioned research into the factors driving the crime and possible interventions by insurers and law enforcement agencies.
READ: Asisa reveals SA life insurers’ assets surpass R5tn
According to the statistics, remuneration fraud remains the biggest category with 9 9291 cases in 2025, although this was down from 9 904 in the previous year.
The fraud typically involves call centre agents, tied agents and independent financial advisors attempting to benefit unlawfully from commissions and fees. The financial cost of remuneration fraud increased to R26.2-million in 2025 from R19.2-million in 2024.
Fraudulent and dishonest life insurance claims also present growing financial concern with the number of cases declining from 5 505 to 3 854 but the actual value or losses increasing from R39.1-million to R54.9-million.
Fraudulent withdrawals and disinvestments from investment accounts record 329 cases, compared with 274 in 2024. Despite the increase in incidents, financial losses show a decline from R44.3-million to R34.6-million.
Another area of concern is fraud targeting deceased estates, where criminals impersonate legitimate parties, fabricate letters of executorship and open fraudulent bank accounts in beneficiaries' names.
However, the industry appears to have made progress in addressing this form of fraud, with cases falling from 161 in 2024 to 43 in 2025.
READ: Insurers paid out R44.2bn in death-related claims in 2025
Van Niekerk attributed the reduction to interventions introduced by the industry, including an Estate Late Fraud working group, information-sharing arrangements between insurers and awareness campaigns aimed at consumers and financial services staff.
An Information Sharing Working Group has also been established at the beginning of 2026 to explore an industry-wide system that would allow members to share information lawfully to identify and prevent fraudulent activity more effectively.
