Sanlam Risk and Savings, a leading financial services provider in South Africa, recently released its claim statistics data for the year 2022. The report reveals a significant decrease in claim payouts compared to the previous year, largely attributed to a decline in COVID-19-related claims. The data also sheds light on interesting patterns, emphasizing the critical need for younger South Africans to have adequate insurance coverage to protect their financial well-being. Let’s delve into the details of Sanlam’s claim statistics and the implications for individuals in different age groups.
Decrease in Payouts
Sanlam Risk and Savings paid out a total of R6.38 billion in claims during 2022, representing a 23% decrease from the R8.3 billion paid out in 2021. The decline can be primarily attributed to a significant reduction in COVID-19-linked claims. In 2021, the company paid out R2.64 billion in confirmed death and funeral claims due to the virus, whereas the corresponding figure for 2022 was R108.84 million.
Importance of Cover for Younger South Africans
According to Petrie Marx, Product Actuary at Sanlam Risk and Savings, the claim statistics data for 2022 underscores the significance of insurance coverage for younger South Africans. More than 70% of sickness income claims originated from individuals under the age of 45. Additionally, there was a notable 6% increase in disability income claims for individuals between 26 and 35 years old. Marx highlights the greatest financial risk faced by younger South Africans as the potential loss of their ability to earn an income, emphasizing the importance of comprehensive coverage to safeguard against such risks.
COVID-19 Patterns and Age Group Analysis
Sanlam’s data aligns with the global trend of declining COVID-19 cases as a result of widespread vaccination efforts and previous infections. The report reveals intriguing patterns regarding pandemic-related claims. Between March 2020 and December 2022, most COVID-19 death claims originated from men. However, sickness- and disability income claims due to COVID-19 were roughly equal for both men and women, indicating that the virus affects individuals from all genders in terms of long-term financial implications.
The age group most affected by sickness- and disability income claims were individuals between the ages of 30 and 39, accounting for 39% of total claims. On the other hand, death claims were primarily made by people aged 50 to 59, comprising 30% of the total. Notably, 74% of sickness- and disability income claims came from clients working in the medical field, underscoring the vulnerability of healthcare professionals during the pandemic.
Implications for Insurance Consumers
Sanlam’s claim statistics for 2022 highlight the importance of insurance coverage across various age groups and industries. Younger individuals should recognize the significance of protecting their ability to earn an income, considering the potential long-term financial consequences of sickness or disability. By obtaining suitable insurance policies, they can ensure financial security for themselves and their families.
Furthermore, the data emphasizes the importance of comprehensive coverage beyond the pandemic, as other health-related issues and disabilities continue to affect individuals across all age groups. Individuals should consult with insurance professionals to understand the most suitable policies that address their specific needs and provide comprehensive protection.
Sanlam Risk and Savings’ claim statistics for 2022 provide valuable insights into the changing landscape of insurance claims, particularly in light of the COVID-19 pandemic. The decrease in claim payouts, largely attributed to a decline in COVID-19-related claims, highlights the positive impact of vaccination efforts and the potential for achieving “herd immunity.” However, the report also underscores the need for younger South Africans to prioritize insurance coverage to safeguard against potential financial risks. By considering the insights and taking appropriate measures to secure comprehensive insurance, individuals can protect their financial well-being and gain peace of mind.