Many employers and retirement fund trustees are reducing disability benefits on employee benefit schemes, leaving you potentially underinsured or faced with taking out often more expensive additional cover in your own name. The changes employees face now are largely a result of a sharp increase in claims resulting from the economic downturn that began in 2016. Statistics prepared by True South Actuaries for the Association of Savings & Investment South Africa show an increase of more than 32% in claims on group life and disability policies for the year to June last year. Peter Temple, the regional director for the UK, Ireland and South Africa for reinsurer Gen Re, says after the increase in 2016, claims across life assurers stabilised last year but at a higher level that has continued into this year. Temple, basing his view on claims data for all major life assurers and some smaller players, says many large assurers have in recent financial statements noted losses on group disabilit...

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