Sanlam Risk and Savings’ claims payouts declined by almost a quarter last year thanks largely to a marked drop in claims linked to Covid-19.
The unit of JSE-listed Sanlam paid out R6.38bn in claims in 2022, a 23% drop from the R8.3bn in claims paid out in 2021. The drop in Covid-19-related claims was the main reason for the decline in overall claims with the business paying out only R108.84m in confirmed death and funeral claims linked to the virus in 2022, compared with R2.64bn in 2021.
“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,” said Petrie Marx, product actuary at Sanlam Risk and Savings.
Sanlam Risk and Savings’ claims statistics also highlighted the importance of cover for younger people, with more than 70% of sickness income claims coming from individuals under the age of 45. There was also a 6% increase in disability income claims from people aged 26 to 35 years.
Of the total R6.38bn in payouts by Sanlam Risk and Savings in 2022, R5.44bn was for death and funeral claims; R444.9m for disability, loss of income and impairment claims; and R496.9m for severe illness and injury claims.
On top of the R108.84m in confirmed death and funeral claims liked to Covid-19, Sanlam Risk and Savings also paid out R31.07m for sickness income claims stemming from the virus, taking overall confirmed claims linked to the coronavirus to R139.9m in 2022.
Sanlam Risk and Savings data revealed that 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 due to the virus were more or less equal for men and women. In terms of sickness and disability income claims, individuals aged 30 to 39 years were hardest hit with this cohort accounting for 39% of claims. Most death claims came from people aged 50 to 59 years, who were responsible for 30% of these claims.
The data also showed that the vast majority (74%) of overall sickness and disability income claims came from clients working in the medical field.
In 2022, cardiovascular disease (21%) was responsible for most death and funeral claims; followed by respiratory diseases (17%); accidents, poisoning and violence (12%); and cancer (12%). Most death claims were from men (67%), and from individuals older than 55 (74%). By contrast in 2021 diseases of the respiratory system were the leading cause of death claims due to Covid-19.
“Prior to the pandemic, cardiovascular disease was the main cause of death claims and we expected to see it return to this position,” said Marx. “Noncommunicable 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 catch these at an early stage.”
Cardiovascular disease was also the primary cause (23%) of disability claims; followed by bones, back, joints and connective tissue (19%); mental disorders (11%); diseases of the nervous system and sensory organs (11%); cancer (9%); and accidents and injury at 7%.
“The increase in disability claims for cardiovascular disease is something that we will watch closely in the coming years,” said Marx. “The leading causes of heart disease are high blood pressure, diabetes, smoking, obesity, an unhealthy diet and sedentary lifestyle. We urge people to have regular check-ups and make positive lifestyle choices.”
Motor vehicle accidents were behind 33% of accidental death claims, followed by assault (24%) and suicide (21%). Interestingly, while the number of claims for accidental deaths increased slightly from 2021, they were still significantly lower than pre-Covid levels as a percentage of all other causes.
Severe illness claims were dominated by people under the age of 55, who accounted for 58% of such claims, of which 52% related to cancers and tumours. Bones, back, joints and connective tissue made up 29% of all disability income claims, with men accounting for the majority.
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