South African life assurers reported significant increases in dishonest and fraudulent long-term insurance claims for 2016. The trend is picking up with the majority of dishonest claims being in the funeral industry.
The biggest increase in irregular claims, mainly involving misrepresentation and material non-disclosure, was reported for funeral policies. An unprecedented 11 302 claims worth R168.3m were foiled in 2016. In 2015, there were 2 325 irregular funeral claims worth R45.8m.