Comprehensive life cover gets you through unpredictable times

Discovery Life’s recently published claims experience trends and insights data show the impact of life-changing events on clients.

It also shows the importance of having relevant and comprehensive life cover to navigate life’s everyday risks.

Discovery Life’s yearly claims data revealed that it returned a total of R11 billion to its clients in 2022 in claims linked to uncertain, life-altering events and shared-value benefits.

These payouts included R9.1 billion in individual life claims and group life claims.

Although Covid-19 is no longer a global health emergency and is on a downward trend, the residual effect of the pandemic and signs of the long-term impact are clear in the increased claims for living benefits.

The Severe Illness Benefit, Capital Disability Benefit and Income Continuation Benefit payouts rose by 16%, 38% and 6%, respectively.

Despite the difficulties the pandemic caused, Discovery Life has kept delivering on their core purpose of making people healthier and enhancing and protecting their lives through Discovery’s Shared-Value Insurance model and risk-protection products.

They do this while also rewarding their clients for the steps they take to get healthier.

Here are some key insights and trends that unpack what Discovery Life is seeing in their claims data, as we move into a post-pandemic environment.

Delving deeper

Regular cancer screenings are critical

Cancer has always been high on the list of reasons for Severe Illness Benefit claims. However, there was a significant reduction in cancer screening during the pandemic.

Regular screenings are crucial for improving breast, prostate, cervical and colon cancer survival rates, where early detection is possible.

Early detection can vastly improve the health outcomes of clients.

Due to reduced screening rates, Discovery Life’s Severe Illness Benefit claims for cancer are showing an increase in the proportion of late-stage severity A cancers for which routine screenings are recommended.

Activity is on the rise

Many people are getting out and about again. Encouragingly, Vitality reports that physical activity has leapt by 67% since 2020.

With activities returning to pre-pandemic levels, life claims due to unnatural causes have also increased. These are broken down as follows:

• 30% increase in motor vehicle accidents
• 30% increase in other accidents
• 24% increase in suicide
• 16% increase in claims due to crime events

Motor vehicle accidents have a high impact on death claims for younger clients. “For clients aged 30 and under, 31% of death claims were for motor vehicle accidents, once again demonstrating the importance of responsible driving behaviour as well as having sufficient risk protection from an early age,” says Gareth Friedlander, Deputy CEO of Discovery Life.

Healthy lifestyle changes can improve mental wellbeing

Based on research by the South African Depression and Anxiety Group (Sadag) and the University of the Witwatersrand, it’s estimated that 5.5 million more South Africans are dealing with symptoms of probable depression since pre-pandemic days in 2019.

In 2022, Discovery Life saw suicide claims increase by 13% compared to the 2019 to 2021 period and 24% when compared to the 2016 to 2018 period.

While this may return to more stable levels, we really encourage consistent engagement with the Vitality model, which can help improve mental wellbeing.

Engaging in the mental wellbeing aspects of Vitality can improve a client’s status and increase the rewards they get. These aspects, combined with exercise and healthy eating targets, encourage clients to maintain a balanced lifestyle.

Real rand value of Integration and shared-value insurance

During 2022, Discovery Life paid out R1.3 billion in PayBacks and its clients enjoyed R1.8 billion in premium savings by linking other Discovery products with their Life Plan.

“These shared-value benefits are expected to accelerate, as we estimate paying R6.9 billion in Cash Conversions within the next five years, and R1.7 billion in tertiary education costs through the University Funder Benefit over the next 21 years,” says Friedlander.

“Discovery Life’s Shared-value Insurance model continues to reward clients in meaningful ways as they make healthier choices to better manage their underlying risk.

In doing so, we remain true to our core purpose of making people healthier and enhancing and protecting their lives.”

The value of comprehensive risk protection

To live life to the fullest and help ensure your family’s wellbeing, adequate life insurance serves as valuable protection for everyone, no matter your age or life stage.

In today’s unpredictable times, it has never been more important to have peace of mind, knowing that you have cover for life’s everyday risks.

Learn more about Discovery Life’s comprehensive risk-protection products here or speak to a financial adviser today.

Discovery. The Future of Life Insurance. Now.

Discovery Life Limited, registration number 1966/003901/06, is a licensed life insurer and an authorised financial services and registered credit provider, NCR registration number NCRCP3555. Product rules, terms and conditions apply.