Life assurance claims up 50 percent as fraud fears grow

The life assurance industry claims grew by 47 percent to $100 million in the first six months of the year but the threat of fraudulent cases hangs over the sector, an industry report has shown.

“The industry generally reported timeous settlement of claims. However, players must be cautious in order to manage fraudulent cases pursuant to recent press reports for Old Mutual and First Mutual among others,” said IPEC in its half year report for life assurers.

Net Premiums Written (NPW) were 11 percent up to $173 million driven by fund business and group life assurance income streams.

Three insurers; Old Mutual, Nyaradzo and First Mutual Life wrote 83 percent of the NPWs amounting to $144 million.

Total assets fell seven percent to $1.49 billion from $1.59 billion in the comparable period in 2015.

IPEC said only one insurer, Getsure is undercapitalised.

In the period under review total management expenses went down by seven percent to $28,6 million.

“We encourage product innovativeness, prudent underwriting and cost management throughout the value chain in order to promote sustainability of the industry despite the prevailing challenges in the operating environment,” said IPEC.- The Source

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