Financial PlanningLong-term

FNB Life pays out nearly R2.6 billion in insurance claims, mostly for death and retrenchments

R450 million paid out in pre-emptive claims to help beneficiaries

FNB Life has paid out R2.571 billion in life insurance and policies to its customers in the last year. The majority of pay-outs (R2.3 billion) are for death-related claims, followed by retrenchment and/or inability to earn an income (R190 million) and disability (over R81 million). 

Death related insurance claims have decreased over the course of the 4th wave of COVID-19, compared to spikes recorded during the 1st, 2nd and 3rd waves of the pandemic. Similarly, claims relating to retrenchment and/or inability to earn an income have begun to normalise as lockdown restrictions are gradually eased.

Raj Makanjee, CEO of FNB Retail says, “Our life insurance business has been a significant part of our efforts to support customers in navigating the uncertainly of the pandemic. As a result, we take pride in our ability to pay-out claims at this substantial scale, particularly because we only integrated this insurance business into our offering only 6 years ago with the aim of helping customers in times of vulnerability. As a financial services provider with a focus on money management, we believe that insurance is vital in protecting families against financial hardship.”

Lee Bromfield, CEO of FNB Life, says, “FNB Life was founded with the primary aim of disrupting and changing the insurance landscape by promoting innovative and digitally-driven insurance solutions for the benefit of customers. In times like these, it is critical to ensure that claims are paid out seamlessly to minimise financial pressure and anxiety for customers affected by unforeseen events.”

For the fifth consecutive year, FNB Life has been ranked as one of the top three leaders for customer satisfaction in the annual SACSI customer satisfaction survey. The insurance provider is also the only insurance provider that proactively pays out claims for life insurance claims by routinely checking the National Population Registry for policyholders who are deceased. The pre-emptive claims process pays an average of R14.5 million per month to beneficiaries, with over R450 million paid-out to date.

FNB Life is becoming the preferred life insurance provider for FNB customers, and the bank recently announced that it has expanded its insurance business with the launch of new FNB Short-Term Insurance for car and home, as well as free cover for purchases made with FNB Virtual Cards. FNB and RMB Private Bank customers who take up short-term insurance with FNB can earn eBucks and discounts depending on the insurance product they hold.

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