Discovery reveals claims data trends – including the leading causes of death in clients under 30
Insurer and medical scheme, Discovery has highlighted claims data trends through its shared-value insurance model.
During 2019, Discovery Life paid out R4.8 billion to policyholders, including a total of R1.2 billion through the PayBack benefit. In addition to PayBacks, Cash Conversions to the value of R2.8 billion on our client’s Life Plans are expected to mature over the course of the next 5 years.
Integration with Discovery Vitality promotes the achievement and maintenance of good health throughout clients’ lives, said Discovery Life deputy chief executive, Gareth Friedlander.
“When policyholders do make efforts to live well, it shows in the stats and we’ve been able to reward them for it,” he said.
Underpinned by the Vitality programme, policyholders earn their PayBack percentage according to their Vitality status and Discovery Health claims, where applicable. Policyholders can improve their status the more they engage with the programme.
As a result, they can accrue a higher percentage of their premiums towards a PayBack amount.
In this way, Discovery Life encourages policyholders towards goals of long-term health and reduced overall risk. The lower a person’s risk profile, the higher the PayBack, Friedlander said.
“During 2019, one Diamond status policyholder earned nearly R937,000 in PayBacks. The highest PayBack to a Gold status client was over R650,000.
“Even for less-engaged members, we saw that during 2019, the highest PayBack to a client with a Blue Vitality status was in excess of R535,000.”
“What we’ve been able to determine from our claims data is that in 2019, clients who achieved a Gold or Diamond Vitality status had a 53% lower mortality risk compared to policyholders who are not engaged in the programme,” Friedlander said.
Shared-value during Covid-19
While life has changed since the outbreak of Covid-19 in South Africa as well as the subsequent lockdown, Discovery said it has seen the virus amplify the effects of the Shared-value Insurance model.
“Whilst Vitality is predominantly aimed at reducing the effects of non-communicable diseases, we see its effects playing out very strongly in the Covid-19 environment. On average, highly engaged Vitality members have an 11% lower risk of being admitted to hospital after being diagnosed with Covid-19.
“This almost entirely offsets the increased risk faced by clients aged 60 and older when compared to a 40-year-old client,” said Friedlander.
From a life insurance claims perspective, up to July 2020, 51 lump sum payouts have been made for death and severe illness cover, while 97 claims have been paid out on income and expense protection cover.
“We have seen 45% and 53% of Life Cover claims paid to people aged between 40 and 59 and over 60, respectively. Health professionals on the front line of the fight against Covid-19 comprise the largest number of claims thus far, accounting for 65% of payouts,”the chief executive said.
How has the claims experience changed over the years?
Discovery Life’s chief medical officer, Dr Maritha van der Walt, noted that younger policyholders are seemingly at a considerably higher risk of unnatural death, mostly as a result of motor vehicle accidents, while older generations appear more prone to cancer and cardiovascular related health conditions.
Since 2013, the leading causes of death in clients under 30 have been suicide and trauma, making up 68% of life claims. Of those claims, in 2019, 50% were a result of vehicle accidents.
Members between the ages of 31 and 40 are at a lower risk of dying prematurely from heart-related conditions. When compared to claims from 2014 to 2016, heart and artery severe illness claims have fallen by 22% over the past three years among millennials.
Nearly 1 in 5 death claims made during 2019 were submitted due to unnatural causes. “Suicides are seemingly more prevalent in clients between the ages of 41 and 50. During 2019, however, we did note a 29% decline in the incidence rate when compared to figures recorded five years prior,” said Dr Van der Walt.
Women of all ages are at risk of developing breast cancer. However, over the last four years, it has been the leading type of severe illness cancer (49%) in women between the ages of 51 and 60.
While men are more likely to pass away from heart and artery conditions, cancer is the second leading cause of death.
Prostate cancer is the most prevalent cancer in severe illness claims and accounts for 32% of male cancers in all age groups and 43% of male cancers in the 51-to-60 age bracket. Severe illness claims for prostate cancer have increased by 20% in the last three years, when compared to the prior three years.
In 2019, 22% of clients over the age of 60 who claimed from their Income Continuation Benefit were permanently disabled. This represents 57% of the total amount paid under the Income Continuation Benefit in 2019 which demonstrates the significance of Discovery Life’s 100% upgrade on permanent disability, Discovery said.
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