$58.6M in Benefit Payouts for BSP Life Customers
Insurance is somewhat seen by many in Fiji as a cost rather than an investment.
But that is not true.
People who purchase insurance packages do so to secure their future.
BSP Life, yesterday announced that it paid $58.6M in various benefits to customers in 2017.
This brings the Life and Health insurance provider’s total benefit payouts for the last three years to $155.5M.
The 2017 pay-outs were the highest recorded in its 142 year history.
Of the $58.6 m paid out in 2017, $48.1m was for Life Insurance benefits and $10.5m for Medical Insurance benefits.
BSP Life’s managing director Malakai Naiyaga said: “On average, we paid $1.1 M a week enabling thousands of our customers or policyholders to benefit from their policies with us.
“We view life and health insurance as an essential service and it gives us great satisfaction to see many Fijian households benefiting from their investments with BSP Life. “”Now, than ever before, we believe that having a life insurance policy in particular is a need and no longer a want.
“Last year, we paid $9.9m for death and disability claims, which was $2.2M higher than the previous year.
“The highest number of death payouts was for the age group 50-54 years or 23 per cent of the total claims received.
“When we expanded that to the bracket 4054 years, it represented 46 per cent – almost half of the total death claims.
“The effects of NCD’s are severe and taking its toll on our communities with premature deaths of bread winners.”
Mr Naiyaga said while loved ones cannot be replaced, it helps that beneficiaries of life insurance have some financial security to assist them move forward.
Health Insurance
Medical/ Health insurance payouts rose by $4.2m over the last three years.
From $6.3m in 2015 to $10.5m in 2017. The $10.5M was paid throughout the year covering overseas evacuations, local hospitalisation and general outpatient services.
Some of the cost increase is attributed to the rising cost of medical treatment overseas, BSP Health’s increasing number of insureds and the increased need for medical attention due to NCD’s.
“We are now seeing the trend that the majority of medical payouts were for insureds in the age group 31-40 years.
“We are also seeing a very concerning rise for people needing hospitalisation, specialists care and overseas evacuation below the age of 50 which directly correlates to the rise in NCDs.”
Living benefits
In terms of living benefits Mr Naiyaga said on a positive note, 3,600 policyholders were paid $38.2m for life insurance living benefits, which include maturities and interim maturity payouts.
“It gives us great satisfaction to see that over 65 per cent of our 2017 payouts were in living benefits enabling our customers to meet various life goals including; retirement, tertiary education, setting up small businesses, expanding an existing business, paying off a mortgage or a loan and taking a well-deserved holiday.
“It is also pleasing to note that over 68 per cent of these payouts were to policyholders over the age of 50, no doubt these payouts would supplement the compulsory retirement savings.
“I’d like to commend our policyholders and speciafically the 3,600 policyholders that received maturity payouts for their commitment to ensuring premuims were paid on time for the duration of the policy allowing it to accumulate value for them and providing valuable returns at an important stage of their lives.
“We take great care to be there when our policyholders need us most. Our ability to pay these large benefits year on year is underpinned by our strong financial standing. “We have a stable, balanced and growing investment portfolio, sound governance processes and internationally recognised actuarial expertise to ensure we can deliver on our promises now and in the future.
“We take this responsibility seriously. Our message is simple, it pays to have life and medical insurance and you can trust BSP Life to honour our commitments.”
Growth
Since re-branding seven years ago, BSP Life has experienced rapid growth due primarily to growing awareness of the importance of insurance and customer confidence in the brand.
Mr Naiyaga said: “We thank our policyholders for their confidence in us and can assure them and prospective new customers that we are committed to honouring this trust.”
BSP Life Policy holders
BSP Life has more than 80,000 policyholders, over 100,000 policies and 140 professional advisors licensed by the Reserve Bank of Fiji, plus Broker partners, to provide tailored solutions to customer needs.
There are 10 Customer Service centres Fijiwide.