When South Africans take out insurance, it’s meant to offer peace of mind, a safety net for when things go wrong. But for many, that peace of mind has turned into frustration, with claims delayed, reduced, or rejected altogether.
This growing dissatisfaction has led many to question whether consumers are being treated fairly by insurers or if the industry has become too complex and profit-driven for the average policyholder to navigate.
According to Denise Gabriels, Lead Ombud for the Life Insurance Division at the National Financial Ombud (NFO), most consumer complaints stem from a lack of understanding of the products being purchased.
“The main issue is often that consumers don’t always understand the products that they’ve bought,” Gabriels explained.
“That could be because advisors don’t always explain properly, or because many of these products are sold online or telephonically, and the process can feel rushed. People don’t always understand exactly what they are purchasing.”
Gabriels said that roughly 55% of complaints received by the office relate to claims being declined, often because policy terms and conditions are not met or because medical or financial history is not disclosed.
“The next biggest category, about 28%, involves poor service or communication from insurers, lengthy delays, unclear communication, or issues with premiums, such as policies lapsing or incorrect deductions,” she added.
Listen to the full interview with Denise Gabriels below:
Rising insurance and medical aid costs have added to public frustration, with annual premium increases often outpacing inflation while benefits appear to shrink.
Chief Economist at Econometrix, Dr. Azar Jammine, said the situation reflects a broader trend in the financial sector.
“It’s a trend that is quite unfortunate for many consumers. The pool of people able to afford insurance schemes is getting smaller all the time, and insurance companies are fighting among themselves for business,” Jammine noted.
“The number of calls I get to take up new insurance schemes has rocketed in the last year or two.”
Listen to the full interview with Dr Azar Jammine below:
As financial pressures mount and consumer trust declines, experts say greater transparency, simpler communication, and stronger regulation may be key to restoring confidence in an industry meant to provide protection, not more uncertainty.
VOC News
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