Tag: life insurance

There have been reports regarding the rise of non-indemnity claims stemming from unnatural deaths. This is certainly worrying for life insurers. This is particularly concerning because life insurers have had to entertain several claims in the past couple of years due to COVID-19 related deaths, and subsequently, the July 2021 unrest and the 2022 Durban floods.

Having a financial safety net in place through employee benefits can provide some much-needed reassurance that you and your family are protected if the worst happens. But, did you know there’s more to consider when looking into employee benefit plans other than what is offered?

Nobody enjoys paying tax, but since it’s our legal obligation, we may as well make the most of it by legitimately saving where we can. Because tax savings - even if fractional - compounded over prolonged periods of time can contribute significantly to any person’s financial position.

The adoption of accelerated, or automated underwriting, which uses advanced artificial intelligence and machine learning technologies to evaluate risk and underwrite life insurance, has been limited to date. This can partly be attributed to insurers cautiously rolling out automated decision-making, opting instead for small-scale improvements to risk frameworks.

The insurance landscape is one of ever-changing complexity. The regulatory environment is shifting, consumer expectations are changing, while fast-developing technologies require business models to become more refined to enable innovation, improve risk management and deliver greater value to clients.

The life insurance and annuity industry proved resilient in 2021, even in the face of the many challenges associated with COVID-19. It’s now a given that the pandemic forced insurers to adopt digital technologies and operate more in the digital space. This digital shift is the source of the industry’s resilience as more companies, and customers, enjoy the benefits of their digital transformations.

The implementation of digital technologies is driving massive positive changes for customers and providers in both the short- and long-term insurance industries. The recently released South African Insurance Industry Survey for 2021 has highlighted the role of disruption and innovation, with the majority of CEOs surveyed stating that they are looking to get on the front foot with regard to these twin challenges.

As activity bands become better at collecting health data, life insurance is catching up. When someone first coined the phrase 'grudge purchase', the description was probably most apt for insurance, of any kind: spending money 'just in case' of a damaging occurrence.

The impact of COVID-19 on the life insurance industry was recently highlighted when the Association for Savings and Investment South Africa (ASISA) released their 2020 statistics for the sector. ASISA reported that South African life insurers paid out claims and benefit payments worth R522.7 billion last year, representing a significant increase of R31.7 billion when compared to 2019.

About 7 million South Africans have funeral insurance; this is according to Finscope’s 2019 statistics. This figure underlines the importance we place on making sure our loved ones have a dignified send-off. The question to be asked is whether it is necessary to have both types of insurance policies to achieve long-term financial stability.