Old Mutual has released its claims statistics for 2024, showing it paid out R14.7bn in risk claims, 4.3% more than the R14.1bn it paid in 2023. About half of the total payout value (R7.3bn) was for claims on underwritten risk policies, R4.4bn on corporate group risk policies, and R2.9bn on non-underwritten risk policies.
Consistent with its commitment to delivering on its promise and finding reasons to pay, Old Mutual paid out 98% of death claims and 95% of underwritten claims, which include death, disability, and severe illness cover.
Kavir Ramjee, executive head of protection at Old Mutual, says the high payout values and ratios challenge the widely held view among consumers that insurers avoid paying claims. “We view every claim as a promise kept, a reflection of our deep commitment to our customers. In 2024, we honoured this commitment by paying out about R29m every working day on average in underwritten policies and thereby ensuring financial support when it matters most,” he says.
Here is an overview of Old Mutual’s 2024 claims payouts:
Benefits per product range
- R6.2bn in death benefits.
- R297m in overall disability benefits (income and lump-sum benefits).
- R888m in severe illness benefits.
- R2.9bn in benefits for non-underwritten cover, which mainly comprises funeral policies.
- R4.4bn for corporate group benefits.
Demographics
Across all underwritten products, 62% of claims related to people 60 years of age and older, 30% aged 40 to 59 years, and 8% were younger than 40. Claims for men were more than claims for women — with the ratio being 58% men and 42% women. The average claim age for men was 61 years, while the average for women was 59.
“While it is true that younger individuals are statistically less likely to experience a risk event, the notion that they are invincible is simply not supported by our claims data. The Association for Savings and Investment SA’s 2022 study, titled The South African Insurance Gap, shows that people under 40 are significantly underinsured, and our own statistics highlight why this is concerning. For instance, one of our youngest breast cancer claimants was just 31 years old. It’s a stark reminder that life-altering events can happen at any age, and early financial protection is crucial,” says Ramjee.
Illness and disability — non-communicable diseases remain a concern
The “big four” illnesses (cancer, heart attacks, strokes and coronary artery bypass grafts) made up 73% of all severe illness claims in 2024. Among the most common forms of cancer claims were breast cancer for women and prostate cancer for men.
Two-thirds of breast cancer claims (66%) were from women aged between 40 and 60 years, while almost half of prostate cancer claims (46%) were from men in their 60s.
Commenting on the claims related to non-communicable diseases (chronic diseases that are not transmissible from person to person), Ramjee says: “Most of our severe illness claims are linked to non-communicable diseases like cancer, heart disease, and stroke. Non-communicable diseases typically have prolonged durations and arise from a combination of genetic, physiological, environmental, and behavioural factors. While we can’t change our genetic risk, lifestyle and environmental factors play a huge role, and that’s where early screening and healthier habits can make all the difference.”
The top three conditions behind disability lump-sum claims have been consistent over the past three years: musculoskeletal disorders (21%), central nervous system disorders (18%) and cancers (15%). More than half (51%) of disability income claims were for musculoskeletal disorders.
In conclusion, Ramjee emphasises the deeper meaning and significance these claims statistics hold for Old Mutual and the customers it serves.
“These policies, funeral, life and disability policies and so on, are more than just financial products, they represent a promise of dignity, protection, and peace of mind for loved ones when life takes an unexpected turn. Therefore, our claims statistics are not just numbers, they are a reflection of that promise being honoured,” he says.
This article was sponsored by Old Mutual.
Old Mutual Life Assurance Company (SA) Ltd is a licensed FSP and life insurer. Terms and conditions apply.
