Financial services provider Sanlam has released its claims statistics for 2022, revealing notable trends in claims payouts.
The data show that Sanlam paid out R6.38-billion in claims during the year, which is a 23% decrease from the R8.3-billion recorded in 2021. This decrease can be attributed in part to a substantial reduction in Covid-19-related claims.
In 2021, Sanlam confirmed that it paid R2.64-billion in death and funeral claims related to the virus.
However, this figure dropped significantly to R108.84-million in 2022, highlighting the progress made in combating the pandemic through vaccination efforts and achieving herd immunity.
The service provider said while the impact of the pandemic on claims has lessened, there has been a slight increase in disability claims among younger individuals serving as a reminder of the importance of obtaining insurance coverage early in life.
Petrie Marx, product actuary at Sanlam risk and savings, emphasized the significance of safeguarding one’s ability to earn an income, stating that “the greatest financial risk facing younger South Africans is the possibility of losing their ability to earn an income”.
Analyzing the breakdown of the total R6.38-billion paid in benefits, Sanlam confirmed that R5.44-billion went towards death and funeral claims, R444.9-million towards disability, loss of income, and impairment claims, and R496.9-million towards severe illness and injury claims.
Covid-19 claims accounted for only R133.7-million of the total payouts in 2022.
“Our results are consistent with the global trend of Covid-19 cases becoming less frequent and severe as vaccination efforts and past infection result in some ‘herd immunity’ worldwide,” Marx said.
“Our data reveals interesting pandemic patterns between March 2020 and March 2022. Most Covid-19 death claims came from men, but sickness and disability income claims for clients booked off from work for Covid-19 were more or less the same for men and women.
“In terms of sickness and disability income claims, the age group hardest hit was individuals aged 30 to 39 years [39%]. Most death claims came from people aged 50 to 59 years [30%]. The majority [74%] of our sickness and disability income claims came from clients in the medical field.”
Examining death and funeral claims, Sanlam said cardiovascular disease emerged as the primary cause followed by respiratory diseases, accidents, poisoning, violence, and cancer.
Sanlam said the majority of death claims were made by men and individuals over 55 years old. Motor vehicle accidents accounted for 33% of accidental death claims followed by assault and suicide.
Regarding disability claims, cardiovascular disease was the leading cause followed by issues with bones, back, joints and connective tissue, mental disorders, diseases of the nervous system and sensory organs, cancer, accidents and injury.
Sanlam said most claims were made by individuals over 55 years old (44%), with 40% being women.
Severe illness claims, predominantly made by individuals under 55 years old, were largely attributed to cancers and tumors, and heart attacks.
Sanlam said there was a significant increase in claims for angioplasty, suggesting earlier diagnosis of heart conditions.
Among female claimants, 63% of severe illness claims were for cancer, with breast cancer accounting for 48% of those cases. For males, 42% of claims were cancer-related, with prostate cancer exhibiting an 11% increase from 2021.
The service provider revealed that men constituted the majority of claimants, with accidents accounting for 33% of their claims. Notably, individuals aged 36 to 45 years made the most claims, and the 26-35 age group experienced a 6% increase in claims.
In terms of sickness income claims, Covid-19 remained the leading cause in 2022. Women accounted for 55% of claims, with 12% associated with pregnancy, childbirth, and puerperium-related conditions.
Marx said: “Prior to the pandemic, cardiovascular disease was the main cause of death claims and we expected to see it return to this position.
“Non-communicable diseases such as cardiovascular disease did not disappear during the Covid-19 pandemic and it is a reminder of the importance of annual health checks and screenings to these at an early stage.”
“In 2022, we paid 16% fewer death and funeral claims than in 2021. Our biggest death claim was R57.8-million and the oldest deceased was 104 years old. For both men and women, most claims for death were the result of heart disease.”
Sanlam’s claim statistics provide valuable insights into the threats facing the nation’s health and wellbeing.
By raising awareness and emphasizing the importance of insurance coverage and regular health screenings, individuals can mitigate financial risks and lead more confident lives.
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