Liberty paid out a total of R12 billion in claims in 2024, fulfilling promises to more than 120 000 lives.

As a key player in the Standard Bank Group’s Insurance and Asset Management division, Liberty continues to deliver a human experience built on simplicity and certainty.

The majority of claims came from the insurer’s retail flagship Lifestyle Protector cover which paid out R7.35 billion to 28 889 individuals and their beneficiaries; with an average payment of R260 000 to each person or their families who claimed during the year.

Liberty Corporate Benefit’s claims payouts for 2024 amounted to R2.6 billion, paid to 11 198 individuals. Claims from Liberty’s funeral products and credit life products (partly sold through Standard Bank) made up the remainder of the total claim payouts, amounting to R1.99 billion.

Liberty’s annual Claim Statistics provide valuable insights into health and lifestyle trends, socio-economic challenges, underinsurance, product performance and industry trends through data gleaned from the different life stages of Liberty’s clients. The statistics also aim to provide a very tangible demonstration of the value of Liberty’s various 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.

Life cover dominates claims in 2024

There were increases in claims across all four key pillars of the business last year under Liberty’s Lifestyle Protector suite. Life Protection payouts increased by 9.5% to R5.5 billion, Lifestyle Protection increased by 20.4% to R1.2 billion, Income Protection lump sum payouts rose by 18.5% to R507 million and monthly income protection payouts were up 11.6% to R267.3 million.

While life claims made up the bulk of payments, the dramatic increase in claims from Lifestyle Protection benefits demonstrates that people are living longer with critical illnesses. One reason being that they are receiving treatment more promptly based on earlier detection. This highlights an increased need for living benefits and more regular 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 expected, the majority of claims were from older clients, with the average age at claim being 60 for women and 64 for men. However, 25% of claims were from male clients under 55 and 35% for female clients under 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.

In 2024 Liberty saw a much higher proportion of overall claims coming from men (64.8%) than from women (35.2%). While Liberty’s client base is split almost equally between men and women, one of the reasons for this gap could be the fact that a larger proportion of these men are older and more likely to claim.

Top causes of claims

Cancer (31.2%), cardiovascular disorders (22.3%), respiratory disorders (5.8%), musculoskeletal disorders (5.5%) and nervous system disorders (5.3%) were the top five claim causes, accounting for 70.2% of all claims among all benefits. While cancer was the leading cause for claims among men and women, 37.2% of women claimants claimed for cancer, compared to 27.9% for men.

“The higher prevalence of cancer among women can possibly 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 Chief Medical Officer, Dr Reinhardt Erasmus.

Early detection was a positive trend that emerged amongst cancer claims.

“Many of our cancer claims were in the early stages of the condition and this suggests that South Africans are going for regular check-ups. Cancer can be addressed more easily if detected earlier,” says Dr Erasmus.

Musculoskeletal disorders drive income protection claims, while women claim more for retrenchment

The number one reason for income protection claims were musculoskeletal disorders at 22.7%, followed by cancer at 16%, and retrenchment at 9.9%.

Chief Specialist for Liberty’s Lifestyle Protector cover, Kresantha Pillay says although retrenchment claims have come down from 2023 to 2024, the need for adequate income protection cannot be emphasised enough.

“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 and shows 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.

In addition, Gauteng registered the highest number of retrenchment claims at 47.5%, followed by the Western Cape at 28.7% and KZN at 14.9%.

Mental disorder claims down year-on-year

Claims for serious mental disorders made up 2.8% of all retail claims in 2024. Of this percentage, 51.1% of these claims were for life protection benefits with the remainder for living benefits. The tragedy of suicide accounted for the majority of these life protection claims.

Education protection - a growing priority

Claims from Liberty’s EduCator benefit totalled R48.6 million in 2024, which means that Liberty was able to take care of the school fees and contribute towards the associated education costs of 777 children whose parents were covered under the benefit. Most claims were for the costs of secondary and primary phases of education. Additionally, 61.6% of EduCator policyholders were for male parents, highlighting again, that women may not be adequately covered. In addition to the R48.7m paid in 2024, Liberty also expects to pay an additional R627.8 million in the future for the remaining years of these children’s education.

EduCator is a benefit that pays for a child’s education should the client pass away, become permanently disabled or critically ill.

More than a billion in funeral claims – and a winter spike

Liberty paid out over R1.3 billion in claims for funeral products which assisted 80,345 families  provide a dignified ceremony to honour the passing of their loved ones in 2024. Funeral claims in South Africa typically spike in the winter months of July and August, mainly as a result of a rise in respiratory illnesses, such as the flu and pneumonia. This particularly affects older adults and individuals with chronic health conditions.

Credit life insurance – which protects loans taken out

Liberty paid out R662 million in credit life insurance claims during the year. This cover is designed to take care of outstanding debt if the borrower dies, becomes permanently disabled, suffers a critical disease, or experiences unemployment. This ensures that any loans or credit balances are paid off, easing the financial burden on the borrower's family when these life changing events occur.

ADDLIB continues to pay out

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 2024 Liberty paid R122 million ADDLIB bonuses to 16,478 clients, with an average bonus per policy of R7,406. The highest payout to a single person last year was R1.5 million.

Declined claims remain small in 2024

Liberty paid 91.5% of all claims submitted, compared to 93.8% in 2023. Declined valid claims were a very small proportion at 0.5% - showing Liberty’s commitment to paying all valid claims. Declined claims under living benefits were slightly higher, mainly due to the claim event either not being covered by the policy conditions or the claim criteria not being met.

The value of financial advice

As a life insurer Liberty emphasises the importance of full medical and financial disclosure at the onset of a policy. We also encourage tailored and adequate cover, which can be orchestrated by an accredited financial adviser or broker, based on individual needs.

“Financial advisers and brokers play a crucial role here, not just in providing technical guidance around estate planning or tax but in helping individuals clarify their needs, act, and stay the course. They are the architects of financial futures,” adds Mark Barberini.

CORPORATE CLAIMS

Our Corporate Benefits business paid out R2.6 billion in claims across their product range - a 6% increase from 2023. While the total number of claims increased 2% year–on-year to 11 198, the experience varied between the different benefits.

The largest contributor to claims was the Group Life Assurance or Life Cover benefit, which accounted for R1.3 billion in payouts. While this is a 2% increase in how much was paid, the number of claimants decreased by 15%. Motor vehicle accidents were the leading cause of unnatural deaths, accounting for one in five death claims, highlighting the need for life cover that provides protection against unexpected tragedies.

Family Funeral Benefits experienced an 11% increase in the number of claims paid, increasing total payments in 2024 by 24% to R95 million.

“This reiterates that the cover we provide extends beyond just the employee-employer relationship and that the life of families is always a priority,” says Mangaliso Nxasana, Actuarial Manager, Liberty Corporate Benefits.

The value of income protection in the workplace

Payments for Income Protection claims increased by 4%, to R927 million.

Labour-intensive manufacturing, distribution, and wholesale industries accounted for 22% of total claims, largely due to a higher frequency of injuries.

“Most of these injuries related to the musculoskeletal system. This experience extended into the Lump Sum Disability Benefit where musculoskeletal related claims contributed to the 70% increase in total claims paid, bringing the amount to R142 million.”

Workplace stress is taking a toll

At least 18% of Income Protection claims came from the financial, professional and support services sector. Most concerning here was a high number of psychiatric disorder and neurological disorder claims, suggesting that the work environment may be contributing to mental health challenges amongst employees.

“Factors such as high stress, long working hours, job pressure, and the fast-paced nature of these industries could be key drivers of these mental health issues in the office environment. This is why our product offering includes a suite of value-added services, such as trauma counselling, a 24-Hour health information helpline and a legal assist helpline to provide added benefits to our clients and their employers,” adds Nxasana.

Two-Pot Claims Statistics

As of January 2025, Liberty Corporate Benefits had received 62 000 applications from clients wishing to make use of the Two-Pot System. This saw an amount of R600 million being paid to 48 600 clients who were ultimately approved, after an amount of R155.6 million was deducted for tax purposes.

The largest single payment to an individual was R34 500 after taxes.