Insights from Liberty's 2024 claims statistics: a closer look at health trends and financial protection

Liberty has revealed its claims payouts for 2024, showing a significant increase in benefits paid to policyholders and their families. The majority of claims came from the insurer’s flagship retail cover, Lifestyle Protector, which paid out a total of R7.35 billion to 28,889 individuals and beneficiaries. On average, each claimant or their family received R260,000 over the year.

According to Liberty, its Corporate Benefits also made substantial payments, with R2.6 billion going to 11,198 individuals. Claims from Liberty’s funeral and credit life products, some of which are sold via Standard Bank, contributed a further R1.99 billion to the total payout.

The insurer’s annual Claim Statistics offer insights into health trends, economic challenges, underinsurance, and industry shifts, highlighting the tangible value of Liberty’s risk protection products.

“Our personal risk claim payouts show an increase of 11.8% from 2023. This demonstrates our range of risk protection benefits and the true value delivered by insurance and corporate benefits in a time when South Africans are overburdened by life’s challenges. The payouts provide those affected and their families with financial resources to navigate adversity with confidence in their most vulnerable moments. This assistance goes a long way towards protecting what matters most,” says Mark Barberini, head of comprehensive life solutions at Liberty.

Across Liberty’s Lifestyle Protector range, it said there was notable growth in claims across all major categories. Life Protection payouts increased by 9.5% to R5.5 billion, Lifestyle Protection surged by 20.4% to R1.2 billion, while lump-sum Income Protection claims climbed by 18.5% to R507 million. Monthly income protection claims rose by 11.6% to R267.3 million. Although life claims made up the bulk of payments, the increase in claims under Lifestyle Protection benefits suggests that people are surviving longer with critical illnesses.

Early detection and quicker access to treatment have played a role in this trend, reinforcing the need for living benefits and frequent preventative medical screenings. “Insights like these point to a need for more comprehensive lifestyle protection cover, as death and unexpected medical diagnoses are not the only risks that can have a significant effect on your family and lifestyle. Unexpected life events, such as retrenchment, can also have a serious impact,” says Andrew Methmann, Liberty’s chief specialist for Risk Pricing.

As anticipated, the group says most claims came from older clients, with the average age at claim being 60 for women and 64 for men. However, 25% of male claimants were under 55, while 35% of female claimants were younger than 55.“With 2.2% of claims coming from individuals under the age of 35, it is evident that death, disability, and critical illness can affect anyone, regardless of age, and happen unexpectedly. It is important to encourage younger people to take out cover while they are still young and also in better health, potentially making their risk cover cheaper,” Methmann says.

According to the group, in 2024, men accounted for 64.8% of overall claims, while women made up 35.2%. Liberty’s client base is nearly evenly split between genders, yet a larger proportion of male clients are older, making them more likely to claim. Cancer remained the leading cause of claims, accounting for 31.2% overall, followed by cardiovascular disorders (22.3%), respiratory disorders (5.8%), musculoskeletal disorders (5.5%), and nervous system disorders (5.3%). Among women, cancer caused 37.2% of claims compared to 27.9% for men.

“The higher prevalence of cancer among women can be attributed to the high incidence of breast cancer among South African women. Notably, 46.9% of cancer-related claims submitted by women were for this specific form of the disease. For men, the most common cancer was prostate cancer, accounting for 31.9% of male cancer claims,” says Liberty's chief medical officer, Dr Reinhardt Erasmus.

Musculoskeletal disorders were the primary cause of income protection claims, making up 22.7%, followed by cancer at 16% and retrenchment at 9.9%. Chief specialist for Liberty’s lifestyle protector cover, Kresantha Pillay, notes that while retrenchment claims declined in 2024, the importance of income protection remains critical.

“In 2024, most retrenchment claims occurred in the 35 to 44 age band, with 38.6% of claimants being female and 16.8% male. Overall, 64.4% of retrenchment claims were from women, whilst 35.6% were from men. This reveals a stark contrast in retrenchment claim trends, showing that in 2024, women filed nearly twice as many retrenchment claims as men. This signals a troubling imbalance in job security and underscores the critical need for income protection among women, highlighting the urgency for them to explore tailored financial solutions and safeguards,” says Pillay.

Gauteng recorded the highest number of retrenchment claims at 47.5%, followed by the Western Cape at 28.7% and KwaZulu-Natal at 14.9%. Serious mental disorder claims made up 2.8% of all retail claims, with 51.1% of these being life protection claims. Tragically, suicide accounted for the majority of these. Liberty paid out over R1.3 billion in funeral claims, assisting 80,345 families in honouring their loved ones, the group says.

Funeral claims typically spike in the winter months due to increased respiratory illnesses such as flu and pneumonia, which particularly affect older adults and those with chronic conditions. Liberty also paid out R662 million in credit life insurance claims, ensuring outstanding debts were covered in cases of death, disability, critical illness, or unemployment. Liberty approved 91.5% of all claims, a slight decrease from 93.8% in 2023. Only 0.5% of valid claims were declined, reflecting the insurer’s strong commitment to paying legitimate claims, it says.

“Our Corporate Benefits business paid out R2.6 billion in claims across their product range, a 6% increase from 2023. The largest portion was R1.3 billion paid under Group Life Assurance. Interestingly, motor vehicle accidents accounted for one in five death claims, underscoring the need for a life cover that protects against unforeseen tragedies,” adds Barberini.

PERSONAL FINANCE