The insurer had more mortality claims than anticipated with R6.8bn in excess death claims
SA’s third-largest insurer, Old Mutual, has repriced premiums on new policies for the unvaccinated after experiencing higher Covid-19-related death claims than for which it had modelled.
Williamson’s comments echo sentiments expressed by the Association for Savings and Investments SA, an industry group, which said this week the R3.7-trillion life insurance industry is now considering writing policies that take into account the life-saving benefits of the jabs and the financial risk that unvaccinated policy holders pose on companies.
Net client cash flows refer to the difference between money received from customers — from premiums, deposits and investments — and money given back to them via claims, surrenders and maturities. “Return on equity of 9% remains below managements’ target of 16%, which appears only attainable in the 2023 financial year. Old Mutual appears to have ceded some market share to competitors, including new entrants in the funeral insurance space, and has work to do to make up lost ground in an increasingly competitive space,” Williams said.
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