In 2023, Old Mutual paid out over R14.1 billion in long-term insurance claims. For policies where customers underwent medical evaluations, the insurer approved 95% of claims, amounting to over R7 billion, rejecting only those deemed fraudulent or ineligible.
Key Insights from the Payouts
John Kotze, head of product, stated, “In the past year alone, we paid out over R14.1 billion in claims across Old Mutual. This means that every working day, we paid out an average of R57 million to ensure that our customers and their loved ones are protected when they need it most. Whether it’s a small claim or a major loss, we are here to support them every step of the way.”
The majority of claims were due to deaths, amounting to R5.6 billion. Traumas, including shooting accidents, crime and violence, and motor vehicle accidents, made up 30% of all death claims, with motor vehicle accidents alone accounting for 43% of trauma claims. Suicide accounted for 6% of death claims. “It is devastating that so many people see suicide as the only option and we encourage people to ask for help,” said Kotze.
Kotze also addressed the broader context of trauma claims: “Unfortunately, many trauma claims are a consequence of the current South African environment. We are hopeful that the new government will address key issues such as poverty and unemployment, which we believe will help reduce the level of crime.”
Illness claims totaled R926 million, with 45% due to cancer and tumors. Disability claims amounted to R477 million, primarily due to musculoskeletal disorders. Old Mutual also paid R108 million in terminal illness claims to customers, allowing them to spend their last moments with loved ones.
Senior medical officer Bielqees Salie highlighted that 71% of Old Mutual’s illness claims were due to the “Big 4” conditions: cancer, heart attack, stroke, and coronary artery bypass graft (CABG). “This alarming statistic underscores the impact of non-communicable diseases (NCDs) driven by lifestyle factors. The prevalence of the Big 4 conditions highlights how modern lifestyles contribute to severe health issues,” she said.
Salie emphasized the role of lifestyle in health risks, noting that poor nutrition, inactivity, poor sleep, and mental health neglect are major contributors. “Overeating unhealthy foods leads to obesity, a precursor to many NCDs, and physical inactivity impairs cardiovascular and metabolic health,” she said. “Poor sleep quality is linked to an increased risk of heart disease and stroke, while chronic stress and poor mental health contribute to depression and anxiety, raising the risk of severe illnesses.”
Salie also stressed the importance of regular medical screenings for early detection and intervention. “Preventive measures should include regular screenings for BMI, blood pressure, cholesterol, and blood sugar levels to manage risk factors early,” she advised.
The average claim ages were similar for men and women, with men at 61 and women at 60. Men had a higher proportion of claims at 60%, compared to 40% for women.
Overall, only 5% of underwritten claims were not paid due to reasons such as non-disclosure or fraud.
Kotze concluded by explaining how Old Mutual ensures financial stability to support its customers: “By carefully managing our financial resources, we ensure that we have adequate funds to pay claims promptly while maintaining our long-term financial stability. This reliability makes us a reputable insurer.”
