Liberty paid out R12.63 billion in claims to tens of thousands of clients and their families during the year, providing critical support when it mattered most.

The majority of claims came from the insurer’s retail flagship product, Lifestyle Protector,  contributing significantly to the R7.79 billion paid to 27 976 clients. These payments equated to some R31 million paid to clients every working day during the year.

The insurer’s Corporate Benefits paid out R2.6 billion in claims during the year.

“These claim statistics for 2025 demonstrate Liberty’s commitment to securing the financial futures of South Africans. Our commitment to paying claims remains unwavering. They represent a further promise fulfilled for our clients.   Guided by our principles of certainty, simplicity, and humanity, we ensure clients are supported in times of need, helping them navigate life’s challenges with greater financial confidence,” says Schalk Malan, Head of Insurance SA, Standard Bank Group.

A window into health and lifestyle challenges

Liberty’s annual Claim Statistics can be considered a window into South African health and lifestyle trends as well as socio-economic challenges.

According to the insurer, personal risk claim payouts increased by 7% year-on-year, reflecting the continued value of cover.

“These payouts provide critical financial support, helping clients and their families navigate some of life’s most vulnerable moments,” adds Malan.

Life insurers, both globally and locally, continue to evolve as technologies such as artificial intelligence and human‑augmented digitisation reshape the industry. These advancements are bringing insurers closer to clients and enabling faster, more responsive claims processing.

Liberty highlights the impact of faster claims processing, noting that in one instance, a full life cover payout of R6 million was processed within five hours of a death claim being submitted, despite no emergency payout benefit being in place.

“This demonstrates how modern life insurance is evolving to provide rapid financial support when it is needed most.”

Life cover leads

The statistics reveal a R5.6 billion payout in death claims, compared to R5.5 billion the year before. Once again, cancer emerged as the leading cause for claims from both men and women.

“While life cover is often associated with older individuals, it remains essential across all age groups. Younger individuals are taking on increasing levels of debt, which could place a financial burden on their families in the event of an untimely death. The youngest life insurance claim was for a 22-year-old client who had been covered for one year and one month, with beneficiaries receiving a substantial amount, following a fatal motor vehicle accident. The oldest client was 103 and had been covered for 37 years”, says Tom Crotty, Liberty ‘s Head of Risk Technical Marketing.

Protecting your lifestyle

During the year in review, Liberty paid out R1.24 billion in critical illness related claims, compared to R1.21 billion in 2024.

Much of this was as a result of clients taking out Lifestyle Protector’s Living Lifestyle cover which is a comprehensive critical illness and trauma benefit designed to cover a diagnosis of a defined critical illness or trauma event. It pays out a lump sum to help a person adapt to life-changing health conditions and maintain their quality of life.

The youngest recipient was 26 and the oldest 83. For both men and women, cancer was the leading cause, making up 42.6% of all claims.  Cardiovascular disorders were at 25.3% and central nervous system disorders at 8.7%.

Significant increase in disability cover

A total of R924 million was paid out for loss of income due to disability. This represented a 19.4% increase from 2024 when R773 million was paid out.

Muscular skeletal disorders were the main cause for these claims, making up 21.1% of the claims. Cancer was the second leading cause, accounting for 15.2% of claims, followed by cardiovascular conditions at 10.3%.

The largest disability claim, based on the client suffering from severe sleep disorders related to narcolepsy and sleep apnoea, which was determined to have a total and permanent impact on the individual’s ability to earn an income. The claim was settled under Liberty’s Absolute Protector Plus, a benefit designed to provide financial security in cases of permanent impairment or loss of occupational capacity.

The causes of work-related disability include serious illness or accidents, and these events come unexpectedly in a person’s life. Their suddenness usually comes with a financial shock, but being prepared by having the appropriate cover in place gives you an ability to regain control of your life in these circumstances. Cover often is structured as either an income or as a lump sum to allow the client to cover immediate day to day living expenses, settle debt or make lifestyle changes. The cover can also offer inflation-linked protection to ensure that the value of the cover is not eroded by the effects of inflation.

Ensuring a child’s education

A total of 468 children and young adults were beneficiaries of cover in this period.  R42.7 million in education cover was paid out. The largest payment during the year was R763 680 for a learner in tertiary education.

“Liberty education cover even includes provision for university learning, both locally and internationally. We understand that parents view their children’s education as the key to the quality of their kids’ future lives, even if they are unable to pay for it due to unexpected changes in their life circumstances,” says Crotty.

Breakdown for all claims

For all Liberty claims, cancer was the leading cause at 32.5%, cardiovascular claims at 22.2%, central nervous system disorders at 5.7%.

Bonuses paid out to clients

ADDLIB is a benefit which rewards clients with a cash payment based on the value of their qualifying Liberty risk and investment policies, without the need for a claim. In 2025 Liberty paid out R114 million in these bonuses. In addition, Liberty also paid out R8 million in Wellness Bonuses, which are rewards of cash back, of up to 40% on their lifestyle protector premiums, for being on a wellness programme recognised by Liberty.

All valid claims paid out

Liberty paid out all valid claims. Of the total claims received, 7.3% were declined, as they did not meet the policy criteria, 1% related to conditions not covered, and 0.6% were due to policy exclusions. The remaining 0.6% were declined based on non-disclosure and fraud.

The value of long-term insurance

“Based on the South African insurance gap research, published by the Association for Savings and Investment (ASISA), South Africans remain underinsured and have an insurance gap of R50.3 trillion in 2025. This highlights a real social need for more South Africans to protect themselves from a health event that could affect their ability to earn an income or the passing of a breadwinner, and any dependents of that income stream,” says Malan.

Liberty Corporate Claims

Claims from Liberty’s Corporate members totalled R2.6 billion, a figure unchanged from the previous year. Some 11 574 clients were paid out, amounting to R10.4 million in claims paid for every working day in 2025.

Claims by industry

These top 3 industries accounted for 39% of all corporate claims paid out in 2025. The figures reflect the average claim amounts, per claimant, by industry:

Financial, professional & support services: R39 951

Manufacturing & distributor/wholesalers: R37 503

Retail (incl specialty services): R22 088

“By way of explanation of what we see here is that employees in financial services and retail are prone to stress-related issues like anxiety, mental health struggles due to long hours, high-pressure-induced neurological and psychiatric disorders, as well as chronic emotional and stress-induced musculoskeletal issues.

Meanwhile in manufacturing, employees are often at risk of physical injuries from machinery, exposure to toxic chemicals and other similar issues which could lead to unnatural deaths as well as disability caused by the injuries,” says Sinethemba Khoabane, Head of Group Risk at Liberty.

Trends in cover

Group Life Assurance pay outs increased by 2% compared to the previous year. But there was a significant increase in the number of deaths among young adults, the highest increase of 15% being observed in the 0-34 age band.

“This shows the increasing need for Group Life Assurance across all ages. Young adults aren’t low risk - they are just differently exposed,” Khoabane says.

From an income protection perspective, females had a 23% increase in claims paid for muscular/skeletal/joint-related causes, as compared with the 10% increase for Males.

According to Dr Reinhardt Erasmus, Chief Medical Officer at Liberty, “prolonged sitting at work should be avoided to reduce the risks of musculoskeletal disorders among office workers. Individuals who maintain healthy habits, such as regular physical activity, a healthy weight, and good sleep can significantly reduce their risk of musculoskeletal and joint conditions, such as back pain and osteoarthritis.”

Corporate Claims Break Down

Group Life assurance: R1 286 Million

Income Protection: R965 Million

Critical Illness: R123 Million

Lump sum disability: R114 Million

Funeral Benefit: R105 Million