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Momentum announces their 2013 claim statistics

21 February 2014 Momentum

Momentum Retail announced their claim statistics for the period of January 2013 to December 2013 on 19 February 2014. During the period under review, Momentum Retail Insurance paid over R2 billion in death claims and more than R2,6 billion across all benefit types.

It is interesting to note that the largest claims in 2013 included:

• A death claim of R34 million
• A terminal illness claim of R27 million
• A critical illness claim of R4,6 million
• A disability claim of R7,9 million
• An income disability claim of R278 000 per month

Myriad is Momentum’s flagship market leading life insurance product and since its inception in 2002, more than 500 000 lives have been insured. This explains the total sum assured on the Myriad book which amounts to over R850 billion. Besides paying claims, Myriad gives back to clients in many other ways. Over the past 11 years, Myriad awarded R950 million in Momentum Interactive discounts. This revolutionary incentive rewards clients with a discount of up to 60% on their insurance premiums, for living balanced lifestyles based on factors such as body mass index, cholesterol, blood pressure or for engaging with Momentum’s rewards programme called Multiply.

In addition, Momentum has already allocated R400 million in total towards clients’ Retirement Booster values. The allocations are made to clients who have both a qualifying Momentum Retirement Annuity and a Myriad life insurance policy in place. Additionally, Momentum continuously finds innovative ways to allow existing clients to benefit from future product enhancements. As a result, the cost of these enhancements that have been introduced to existing clients, to date, have cost Momentum R200 million. This amounts to a staggering R1,55 billion that was given back to Momentum Myriad policyholders, over and above claims that have been paid.

During the year under review, Momentum Myriad repudiated only 1% of all claims. Repudiation refers to a breach of contract by the one party that justifies cancellation by the innocent party. It is conduct which exhibits the clear and unequivocal intention of the party concerned to no longer be bound to the contract as a result of very specific reasons.

Momentum believes in treating their clients in a fair and transparent manner. Therefore, they will never discourage their clients from taking their cases to the office of the Long-term Insurance Ombudsman. The office of the Ombudsman received 10,028 long-term insurance complaints in 2013 and once again there was no determination against Momentum Myriad.

If one reviews the critical illness claims by age group for 2013, 52% of all claims fall within the age bracket of <30 to 50 years which is viewed as a relatively young age group. A similar trend is visible with permanent disability claims by age where 65% of all claims were paid to the age group of <30 to 50 years. This just emphasises the fact that it is never too early to put the right risk protection in place. In fact, according to Arrive Alive, younger drivers are four times more likely to be involved in a motor vehicle accident. The Road Accident Fund (RAF) data shows that 40.85% of road user fatalities occur among drivers between the age of 20 and 35. Source: RAF Annual Report, 2010.

The 2013 Momentum claim statistics also revealed that 75% of all income disability claims are received from the age group <30 to 50 years. Income disability cover protects your income when you are unable to earn an income as a result of an accident or illness. Looking at the number of claims that were received from critical illness, permanent disability and income disability, within the age bracket of <30 to 50, it really does suggest that younger people should start planning for their financial wellness as early as possible in order to make adequate provision if the unthinkable should ever happen.

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