Life insurers pay claims and benefits worth R298 billion in the first half of 2024.
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GUEST – Gareth Friedlander, a member of the ASISA Life and Risk Board Committee
South African life insurers paid R298 billion in claims and benefits to beneficiaries and policyholders in the first six months of 2024, according to the long-term insurance statistics released by the Association for Savings and Investment South Africa (ASISA). Payouts were for retirement annuity and endowment policy benefits, as well as claims against life, disability, critical illness and income protection policies.
Gareth Friedlander, a member of the ASISA Life and Risk Board Committee, says the R298 billion would have been paid to individuals following a tragic event like death or disability or a significant life stage change like retirement.
Despite the sizeable pay-outs, life insurers remained well-capitalised and in a solid position to honour the long-term contractual promises made to customers. Friedlander reports that the life insurance industry held assets of R4.3 trillion at the end of June 2024, while liabilities amounted to R3.9 trillion. This left the industry with free assets of R377 billion, more than double the reserve buffer required by the Solvency Capital Requirement (SCR). The SCR is regulated by the South African Reserve Bank’s Prudential Authority and is designed to protect policyholders.
South African life insurers paid R298 billion in claims and benefits to beneficiaries and policyholders in the first six months of 2024, according to the long-term insurance statistics released by the Association for Savings and Investment South Africa (ASISA). Payouts were for retirement annuity and endowment policy benefits, as well as claims against life, disability, critical illness and income protection policies.
Gareth Friedlander, a member of the ASISA Life and Risk Board Committee, says the R298 billion would have been paid to individuals following a tragic event like death or disability or a significant life stage change like retirement.
Despite the sizeable pay-outs, life insurers remained well-capitalised and in a solid position to honour the long-term contractual promises made to customers. Friedlander reports that the life insurance industry held assets of R4.3 trillion at the end of June 2024, while liabilities amounted to R3.9 trillion. This left the industry with free assets of R377 billion, more than double the reserve buffer required by the Solvency Capital Requirement (SCR). The SCR is regulated by the South African Reserve Bank’s Prudential Authority and is designed to protect policyholders.