Retrenchment income claims stand-out item in Liberty’s statistics
Need for income protection insurance has been increasing
Retrenchments accounted for the biggest share of monthly income claims paid out by Liberty in the 2018 financial year. The group paid R20.5m, which is 38.3% of all monthly income claims it received in 2018, to 1,102 retrenchment victims. Liberty is one of the insurers who provide income protection for retrenchments. The company said it has seen the need for this cover increase over the past few years and even banks were starting to offer it. Figures released by Statistics SA in its latest Quarterly Labour Force Survey for the first quarter of 2019 showed that unemployment in the country climbed to 27.6% from 27.1% the previous quarter, while the expanded definition of unemployment which includes discouraged work seekers pushed it to 38%. Mining companies including Anglo Gold Ashanti and Impala Platinum retrenched more workers in 2018. Earlier in 2019 it became clear that even the services industries — which seemed immune to macroeconomic downturn in the past — may start retre...
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