Body blow to group disability benefits
Employers cut back on benefits you may need should you fall ill
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...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.