Today's Labour News

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LibertyBusinessLive reports that retrenchments accounted for the biggest share of monthly income claims paid out by Liberty in the 2018 financial year.  

The insurer paid R20.5m, which was 38.3% of all monthly income claims it received in 2018, to 1,102 retrenchment victims.  One of the insurers who provide income protection for retrenchments, the company said it has seen the need for this cover increase over the past few years.  “It is projecting the state of the economy.  We all have our hopes pinned on things improving,” said Liberty’s Ursula Torr.  The monthly income claims related to retrenchments made up just 0.44% of the total of R4.7bn claims paid by Liberty in 2018.  The other most prevalent reasons for monthly income claims were disorders, cancer and trauma.  With increasing unemployment and more companies contemplating retrenchments, the question is said to be whether it will be sustainable for insurers to continue offering this type of cover.  Torr commented:  “Given the size of the need, I think we’ll continue to offer it but the question is at what price?  We do see it in bank products as well now, but it’s one of the most reinsured products.”

  • Read the full original of Londiwe Buthelezi’s report in the above regard at BusinessLive

Get other news reports at the SA Labour News home page