Basic financial literacy means being able to manage your salary and expenses, save, invest, be responsible with regard to incurring debt, and be prepared for unanticipated or emergency expenses.
· The Ombudsman for Long-term Insurance received 11 768 written complaints in 2018. An increase of 1 000 complaints compared to 2017.
· 41% of complaints was funeral complaints. An increase of 4% since 2017. Funeral complaints was again the majority of complaints submitted to the Ombudsman .
· Life Insurance complaints decreased with 3%.
In 2017 the South African Life Insurers have seen a significant increase in irregular and fraudulent death claims. Statistics for 2018 still needs to be released.
According to the Association for Savings and Investment of South Africa (Asisia) 5026 irregular claims was submitted to the astonishing value of R1.13 Billion.
The FSCA has issued communication letter 2 of 2018 with an important update on the future of premium collection in line the regulatory framework of the Long-Term Insurance Act (LTIA)
The FSCA is of strong view that premiums collected should be directly into the Insurer’s bank account. This would limit the maximum period that premiums is paid from 45 days to a suggested 48 hours.