Discovery Life's 2024 claims experience report reveals a record R11.5 billion paid out to clients, highlighting the significance of living benefits and the impact of early detection in healthcare.
Image: Armand Hough/Independent Newspapers
Discovery Life has released its 2024 claims experience report, revealing a total of R11.5 billion paid out to clients over the year. This includes R6.85 billion in individual life insurance claims, R2.4 billion in Shared-value rewards (which are earned through healthy behaviours), and R2.3 billion in Group Risk claims.
The R6.85 billion paid out under individual life insurance was distributed as follows:
“In 2024, we honoured 99.3% of all valid claims,” says Sylvia Steyn, Discovery Life’s Head of Claims. “Of the 0.7% not paid, 0.4% were due to non-disclosure, 0.2% due to misrepresentation, and 0.1% were fraudulent. This underlines our strong track record of supporting clients when they need it most.”
Discovery Life also paid out R2.4 billion in Shared-value rewards, which are financial incentives linked to how well clients manage their health and finances. These rewards include:
“2024 marked the first time we paid over R1 billion in Cash Conversions in a single year,” notes Gareth Friedlander, Deputy CEO of Discovery Life. “This milestone reflects how our clients are engaging with Vitality, our behaviour-based wellness programme. Clients on Gold or Diamond Vitality status had a 57% lower risk of death and 47% lower disability risk than those not on the programme.”
“Over 60% of our total payouts go to living clients,” Friedlander adds. “This is significantly higher than the industry average, where only 20–30% of claims go towards living benefits.”
According to Discovery, in 2024, cancer remained the top cause of death for women (35%), the most common severe illness (51% for women and 37% for men), and the leading cause of disability (34% for women and 30% for men).
Due to Discovery’s investment in health screening, screening rates have surged compared to 2020, the group says:
This has led to a 62% increase in early-stage cancer claims. “We're seeing a clear upward trend in lower severity cancer claims – proof that early detection is working,” says Dr Maritha van der Walt, chief medical officer at Discovery Life. “Stage 4 cancer disability claims have dropped 16% since last year, which is remarkable.”
The importance of early detection is underscored by data from the Discovery Vitality HealthyFutures model and the US-based SEER programme, showing that early-stage breast cancer has a 96% five-year survival rate, and localised prostate cancer has a 99% survival rate.
Among all age groups, one in five deaths in 2024 were due to unnatural causes, with:
“This shows the critical need for comprehensive life cover for all South Africans, regardless of age or health status,” says Van der Walt. “It also highlights the importance of mental health support and responsible driving. Programmes like the Discovery Health Medical Scheme Mental Health Care Programme, and Discovery Insure’s Vitality Drive aim to address these issues directly.”
In 2024, the group says Discovery Life paid out R1.54 billion across 2,900 severe illness claims. Notably, R275 million was for second or subsequent claims, and nearly one-third of these were third claims or more. Some clients had claimed more than 10 times.
Additionally, R128 million was paid out via Converted Severe Illness claims, where disability cover that expires is automatically converted to illness cover.
“28% of severe illness claims were from clients over 60, up from just 11% a decade ago,” Friedlander says. “It’s vital to secure illness cover early – not only is it more affordable, but it may not be available later in life.”
In light of global uncertainty and a fluctuating rand, Discovery Life’s Dollar Life Plan pays out claims in US dollars, providing diversification much like global investments do.
Since 2014, the Dollar Life Plan has paid out over $34 million in claims, with the dollar value adding approximately 19% extra to clients’ payouts due to exchange rate gains.
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