Well-known insurer pays South Africans R29 million every working day

Old Mutual pays out an average of R29 million per working day to clients who claim on its various life insurance policies and other life underwriting activities. 

This was revealed as part of the release of the insurer’s claims statistics for 2024, which the company collects to analyse trends in the market and better inform its products and services. 

Old Mutual is one of the largest insurers in the country, with its life insurance business alone paying out R14.7 billion in risk claims in 2024. 

This is up 4.3% year-on-year and reflects its growing customer base and the normalisation of claims patterns following the COVID-19 pandemic. 

The insurer stated that approximately half of the total payout value was allocated to claims on underwritten risk policies, R4.4 billion for corporate group risk policies, and R2.9 billion for non-underwritten risk policies.

Old Mutual paid out 98% of death claims and 95% of underwritten claims, which include death, disability, and severe illness cover.

The executive head of protection at Old Mutual, Kavir Ramjee, said 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 R29 million every working day on average in underwritten policies,” he said. 

Below is an overview of Old Mutual’s 2024 claims payouts, with an outline of the benefits paid per product range –

• R6.2 billion in death benefits
• R297 million in overall disability benefits (income and lump-sum benefits)
• R888 million in severe illness benefits
• R2.9 billion in benefits for non-underwritten cover, which mainly comprises funeral policies
• R4.4 billion for corporate group benefits

The claims statistics released by Old Mutual only cover its life insurance underwriting business and do not include its extensive short-term insurance business. 

Who is claiming and why 

As with historical trends in life insurance, the majority of claims come from older individuals who are more likely to trigger these policies. 

Across all underwritten products, 62% of claims involved individuals 60 years of age and older, 30% were aged 40 to 59 years, and 8% were younger than 40 years. 

Claims for men were more than those for women, with a ratio of 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,” Ramjee explained. 

The ASISA Gap Study reveals that individuals under 40 are significantly underinsured, and Old Mutual’s own data underscores the concern. For instance, one of its youngest breast cancer claimants was just 31 years old. 

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 were from women aged between 40 and 60 years, while almost half of prostate cancer claims were from men in their 60s.

“Most of our severe illness claims are linked to non-communicable diseases like cancer, heart disease, and strokes,” Ramjee said.  

“Non-communicable diseases typically have prolonged durations and arise from a combination of genetic, physiological, environmental, and behavioural factors.” 

The top three conditions behind disability lump-sum claims have been consistent over the past three years – musculoskeletal disorders, central nervous system disorders and cancers. More than half of disability income claims were for musculoskeletal disorders.