Life Insurance Industry’s Revenue Is Growing Steadily

THE life insurance industry revenue grew by 14% during the first half of this year compared to the same period last year, despite a slowdown in consumer spending due to high inflation and interest rates.

According to the Life Offices’ Association (LOA) total premium and investment income increased to more than R124billion from R108.4bn in the same period last year.

When compared to the second half of last year, total income increased by 1% from R122.2bn .
The 2008 half-yearly statistics for the long-term insurance industry, released by the LOA, also show that life insurers attracted new clients during the first half of this year, despite consumers grappling with high interest rates and substantial increases in the overall cost of living.

This should be good news for the country, especially after a survey commissioned by the LOA last year revealed that South African families were grossly underinsured by an estimated R10trillion.

Gerhard Joubert, CEO of the LOA, said new premiums grew by 5% to R31.9bn between January and June this year, compared to R30.2bn in the second half of last year.

He said life insurance companies put close to R90b n back in the hands of beneficiaries, policyholders and pension fund members as a result of death and disability claims as well as maturity pay-outs and pension and annuity payments during the first six months of this year alone.

Source: http://www.dispatch.co.za