Insurance Covid-19 vaccine 18-to-34-year-olds

Unvaccinated people will pay higher insurance premiums. Photo: Cover Images

Still not jabbed? Then you may have to face higher insurance premiums

‘A consistently higher claims experience will leave insurers with little choice,’ said Asisa’s Hennie de Villiers.

Insurance Covid-19 vaccine 18-to-34-year-olds

Unvaccinated people will pay higher insurance premiums. Photo: Cover Images

Over the last year, there has been a sharp increase in COVID-19 related deaths in South Africa. Because of this, Association for Savings and Investment South Africa (Asisa) predicts that citizens who are not yet vaccinated will soon face higher insurance premiums.

Higher insurance prices for unvaccinated South Africans

Hennie de Villiers, deputy chair of the Asisa life and risk board committee says that the number of insurance claims has been equal as high as the number of deaths over the last year.

According to De Villiers, this will leave insurers with little choice but to adjust premiums in line with the higher risk presented by someone who is not vaccinated – especially since there is significant evidence that the risk of severe illness or death is significantly lower in those who are fully vaccinated.

“There is overwhelming evidence that the risk of severe illness or death is significantly lower in those who are fully vaccinated. A consistently higher claims experience will leave insurers with little choice but to adjust premiums in line with the higher risk presented by someone who is not vaccinated and therefore more likely to die from Covid-19.”

Higher death rates, more payouts

De Villiers also confirmed with BusinessTech that premiums have already increased in the group life insurance space, he did however add that mandatory vaccination at certain places of employment has resulted in employers benefitting from preferential premium rates.

In total 1,588,605 death claims were received in the 18 months from 1 April 2020 to 30 September 2021. Life insurers paid out benefits of R92 billion to the beneficiaries who submitted these death claims, said De Villiers in the BusinessTech article.

He also added that while not all deaths were COVID-19 related, many of the deaths were a result of the pandemic and of people’s refusal to get vaccinated.

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