Latest news with #ASISA
IOL News
29-07-2025
- Business
- IOL News
SA insurers expose shocking ‘kill-for-cash' schemes and fraud frenzy
Murder, Mistakes, and Millions: SA Insurers Expose Shocking 'Kill-for-Cash' Schemes and Fraud Frenzy Image: Ai-Generated/Sora From shocking 'murder for money' cases to bank errors that drained customer accounts, South Africa's financial watchdogs and insurers are uncovering fraud and fixing costly mistakes – and the amounts involved run into the hundreds of millions. In fact, in the past year, of the 5 505 fraudulent and dishonest life insurance claims recorded by Association for Savings and Investment South Africa (ASISA) members, 38 were murder for money cases, its latest report showed. Jean van Niekerk, convenor of the ASISA Forensic Standing Committee, said that while all types of fraud and dishonesty are of concern, the industry is particularly focused on stamping out murder for insurance payouts and deceased estate fraud. In addition, ASISA members have picked up on criminal syndicates identifying deceased estates as a lucrative way of accessing large amounts of money, preying on people's grief and the slow and arduous processes involved in winding up the financial affairs of a deceased family member Although the numbers are still relatively low, incidents detected have tripled from 54 in 2023 to 161 in 2024. Even more concerning is the significant rand value of the fraud prevented. 'If we had not detected the 161 cases last year, our industry and beneficiaries would have lost R220 million to criminal syndicates,' says Van Niekerk. Of the 5 505 fraudulent and dishonest life insurance claims recorded by Association for Savings and Investment South Africa last year, 38 were murder for money cases. Image: ASISA Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading These findings form part of ASISA's annual fraud statistics compiled by its Forensic Standing Committee. It stated that its members detected 16 520 cases of fraud and dishonesty in 2024 – up 26% from 13 074 cases the previous year. Insurers and investment firms prevented losses of about R1.4 billion, although criminals and dishonest policyholders still cost the industry R131.6m. Van Niekerk said the loss represents just 0.02% of the R639bn in honest claims paid in 2024. He attributed the lower losses to improved detection tools and forensic teams. 'Our industry has always been seen as a soft target by criminals and dishonest individuals because of the significant amounts of investments and benefits being managed, but it is getting increasingly difficult to get away with fraud and dishonesty,' he said. Remuneration fraud, where agents or advisers dishonestly claim commissions or fees, accounted for more than half of all cases. Life insurance claim fraud was the second-largest category, while fraudulent withdrawals and disinvestments were the only area to see fewer cases, although actual losses there increased slightly. Meanwhile, honest customers are having to deal with miscommunication and unlawful deductions. Last year, the newly created National Financial Ombud Scheme South Africa (NFO) secured R328.5 million in refunds for aggrieved customers who complained about financial institutions. Its annual report shows that of the 28 002 complaints it handled between January and December 2024, 30% related to fraud. Maladministration by financial institutions and complaints from debt-stressed consumers were the second- and third-highest categories. 'These trends align with patterns observed in previous years, where fraud-related disputes consistently accounted for a significant portion of complaints,' the report noted. One case involved a South African customer who signed up for a personal loan over the phone. She believed the interest rate was 19.25%, only to later discover it was 29.25%. She asked the bank to review the rate. The bank said the higher rate was correct, based on her credit profile, and was legal. But when the NFO investigated, it listened to the call recording and found the customer had repeatedly complained about poor line quality. 'Based on the call it was probable that the complainant did not hear the interest rate correctly,' the report said of this anonymous example. Top complaints to the National Financial Ombud in 2024. Image: NFO Because of the bad call quality, there were doubts about whether she fully understood or agreed to the 29.25% rate. South African contract law requires both parties to agree clearly (a meeting of the minds), and banks must make sure customers understand the terms and risks of credit agreements. After mediation, the bank agreed to reduce the interest rate to 19.25% and refunded the difference from the start of the loan. In another case, a customer found R1 689.88 had been taken from his account without notice, leading him to lodge a fraud complaint. He had made a payment of R3 000 to a beneficiary, but a bank system error reversed it and credited the money back to him. He then paid it again – and the beneficiary ended up receiving both payments. Instead of fixing the error, the bank deducted R1 689.88 from his account and flagged a balance owing. The NFO found that the customer was not at fault and that the bank should have dealt directly with the beneficiary who was unjustly enriched. The bank refunded the customer and removed the flag from his account. Nerosha Maseti, Lead Ombud of the Banking Division, said 'bank customers have every right to expect good service and for complaints to be taken seriously'. IOL
The Citizen
23-07-2025
- Business
- The Citizen
The smart move: How having life cover when you're young is a power play for your future
While living benefits are important, it is still important to have life cover if you have parent, child dependants or debt. Concerts, weddings, and wild adventures – your crew is making memories. What about your future? Life insurance may not be on your radar yet, but locking it in early could be the smartest financial decision you ever make. This Savings Month (July), Discovery Life shares insights on why young professionals should consider the invaluable benefits of life cover. When you're in your early 20s to mid-30s, life insurance is probably the last thing on your mind. It's easy to think, 'I'll deal with that later'; 'I already have cover through work'; or 'I'm healthy now, so I'll wait'. However, waiting for 'later' could come at a large cost to those with the majority of their future earnings still ahead of them. Do you have a plan if you're no longer able to earn a salary due to a life-changing health diagnosis or a permanent disability? How would you pay your rent or bond, for groceries, medical aid, car and family responsibilities? 'What many young people are unaware of is that life insurance offers far more than just cover that pays out when someone passes away. Life insurance is an incredibly powerful tool and can be a financial safety net if a severe illness or disability stops an individual from being able to earn an income,' says Gareth Friedlander, Discovery Life Deputy CEO. Younger than 30? You're probably underinsured A 2022 Association for Savings and Investment South Africa (ASISA) Life and Disability Insurance Gap Study revealed that the average income earner aged 30 and younger is underinsured. This means they will be unable to maintain their own, or their dependents' current lifestyle if they become disabled or pass away. The average income earner aged 30 and younger earns a little over R10,000 per month, but typically needs more than R2.7 million in disability cover to maintain their standard of living post claim. On average, they only have disability cover of around R1 million, leaving an insurance gap of R1.7 million. 'The insurance gap for South Africans under 30 is concerning,' says Friedlander. 'Having holistic life cover in place that includes income protection, severe illness cover, and disability cover when you're young is one of the smartest things you can do.' How living benefits are an insurance lifeline for young people 'Along with paying out an insured amount to your loved ones if you pass away, life insurance can also protect you against financial risk if something unpredictable happens while you're alive,' explains Friedlander. The three main 'living benefits' are income protection, severe illness cover, and disability cover. Income protection – This benefit pays you a regular income if you are unable to work due to injury, illness or disability. Severe illness cover – Severe illness cover pays out a lump sum based on the severity level of the illness and can be used to cover costs such as treatment costs and lifestyle modifications. Disability cover – Disability cover pays out a lump sum if you become disabled. It can help cover any associated costs such as buying or maintaining specialised medical equipment, lifestyle modifications or settling debt. Alarmingly, severe illnesses like cancer are increasingly affecting younger people. Over the past 30 years, cancer rates in the G20 nations (which includes South Africa) have increased faster for 25 to 29-year-olds than any other age group – by 22% between 1990 and 2019. This is according to the Financial Times, which analysed data from the Institute for Health Metrics and Evaluation at the University of Washington School of Medicine. Discovery Life's Claims Experience for the 2024 calendar year shows that for severe illness claims, cancer was the leading claim cause at 41%, with heart and artery claims next at 16%, followed by nervous system claims at 13%. Of the severe illness cancer claims, skin cancer was the top cause among men aged 40 and younger (44%), while breast cancer accounted for 43% of cancer claims among women aged 40 and younger. Cancer was also the largest cause of disability claims in this age group (29%). Friedlander adds that two in five income protection claims were paid to clients aged 40 or younger in 2024. One in four of these were for permanent conditions. However, these permanent claims made up 67% of the total rand amount paid out. This highlights the value of income protection, especially for permanent claims where these clients will receive an income going forward. Musculoskeletal claims make up almost one-third of these claims and include, for example, injuries to or surgery for the back and neck, ankles, hands, etc. While living benefits are important, it is still important to have life cover where people have parent or child dependents or debt. Of the death claims in 2024 for those aged 40 and younger, motor vehicle accidents (18%) were the largest cause, followed by heart and artery conditions (16%), and then cancer and trauma, each contributing 14%. For these younger ages, 42% of life cover claims were due to unnatural deaths, highlighting the uncertainty of life. 'Taken altogether, these insights highlight the growing importance of holistic life cover for young people that includes living benefits,' notes Friedlander. The younger and healthier you are, the cheaper your premiums 'Young people also need to know that life insurance premiums are mostly determined by age and health. The younger and healthier you are when you apply, the cheaper your cover is,' explains Friedlander. When you take out life insurance at younger ages, your risk is lower, and you can spread the payments over a longer term. This means that your premiums at earlier ages subsidise your premiums later, resulting in more sustainable premiums at older ages. Waiting to take out cover when you're older, or after you're diagnosed with a chronic condition or severe illness, means higher premiums or potential exclusions from cover entirely. 'Not only does getting life cover when you're young protect your future self and your loved ones, but it also sets a solid foundation for long-term financial wellbeing. Getting life cover when you're young isn't just about planning for the worst. It's about making a confident move that secures your financial journey and your ability to protect what's most important to you. Future you will thank you,' concludes Friedlander. Ready to future-proof your financial plan? Learn more about Discovery Life's suite of protective cover and benefits that reward healthy living and safeguard your financial future.
Hans India
18-06-2025
- Business
- Hans India
ASISA partners with HCLTech to drive digital transformation and expansion in Iberia
HCLTech, a leading global technology company, has been selected by ASISA, a prominent health insurance provider in Spain, as its strategic IT partner to accelerate business transformation and expansion in Iberia. This partnership aims to accelerate ASISA's digital transformation journey to enhance the experience for its 2.2 million customers and position the company at the forefront of innovation in the region. HCLTech will modernize ASISA's IT platforms and leverage AI-based solutions to enhance business efficiency. The comprehensive mainframe modernization and solutions from HCLTech will enable ASISA to create a more agile, responsive IT infrastructure. 'Partnering with HCLTech marks a key step in our digital transformation journey. By modernizing our platforms and embracing cutting-edge technologies, we are reinforcing our commitment to delivering exceptional service to our customers,' said José Pereira, CTO at ASISA. 'This collaboration will empower ASISA with a more agile, scalable and efficient infrastructure—driving innovation and preparing us for the future'. "We are proud to partner with ASISA on this transformative journey," said Sudip Lahiri, Executive Vice President and Head of Financial Services for Europe at HCLTech. "This deal highlights our commitment to investing in Iberia and delivering cutting-edge solutions that drive business success. Our extensive mainframe and infrastructure services will enable ASISA to achieve its strategic goals and set new benchmarks in the Iberian region."
Time of India
17-06-2025
- Business
- Time of India
ASISA partners with HCLTech to drive digital transformation and expansion in Iberia
HCLTech , a leading global technology company, has been selected by ASISA , a prominent health insurance provider in Spain, as its strategic IT partner to accelerate business transformation and expansion in Iberia. This partnership aims to accelerate ASISA's digital transformation journey to enhance the experience for its 2.2 million customers and position the company at the forefront of innovation in the region. HCLTech will modernize ASISA's IT platforms and leverage AI-based solutions to enhance business efficiency. The comprehensive mainframe modernization and solutions from HCLTech will enable ASISA to create a more agile, responsive IT infrastructure. 'Partnering with HCLTech marks a key step in our digital transformation journey. By modernizing our platforms and embracing cutting-edge technologies, we are reinforcing our commitment to delivering exceptional service to our customers,' said José Pereira, CTO at ASISA. 'This collaboration will empower ASISA with a more agile, scalable and efficient infrastructure—driving innovation and preparing us for the future'. "We are proud to partner with ASISA on this transformative journey," said Sudip Lahiri, Executive Vice President and Head of Financial Services for Europe at HCLTech. "This deal highlights our commitment to investing in Iberia and delivering cutting-edge solutions that drive business success. Our extensive mainframe and infrastructure services will enable ASISA to achieve its strategic goals and set new benchmarks in the Iberian region."
Time of India
17-06-2025
- Business
- Time of India
HCLTech partners with Spanish health insurer ASISA to drive digital transformation across Iberia
IT services company HCLTech has partnered with Spanish health insurance provider ASISA to accelerate its business transformation and expansion across Iberia . HCLTech will modernise ASISA's IT platforms and use artificial intelligence (AI)-driven solutions to boost business efficiency and create a more agile, responsive IT infrastructure . With this collaboration, the companies aim to enhance customer experience for ASISA's 2.2 million customers. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Chuck Norris Begs Seniors: Avoid These 3 Foods Like The Plague Roundhouse Provisions Learn More Undo José Pereira, CTO at ASISA, said, 'Partnering with HCLTech marks a key step in our digital transformation journey…This collaboration will empower ASISA with a more agile, scalable, and efficient infrastructure—driving innovation and preparing us for the future.' 'This deal highlights our commitment to investing in Iberia and delivering cutting-edge solutions that drive business success,' said Sudip Lahiri, executive vice president and head of financial services for Europe at HCLTech. 'Our extensive mainframe and infrastructure services will enable ASISA to achieve its strategic goals and set new benchmarks in the Iberian region.' Live Events This move follows HCLTech's partnership with European energy major to support its product-based transformation, using advanced cloud and AI technologies. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories
