BSP Life Pays Out Over $49M in Benefits in 2015

Date: 22/04/2016

BSP Life, Fiji's leading Life and Health insurance provider has announced that it paid F$49.1M in various benefits to customers in 2015. This brings the total of customer benefits paid out in the last three years to $142.8M.

For 2015, $42.8M was for Life Insurance benefits and $6.3M for Medical Insurance benefits.

Life & Health Insurance Payouts (F$) 2015
Maturities 33.3M
Death & Disability 9.5M
Medical 6.3M
Total Payouts $49.1M
BSP Life's Managing Director Mr Malakai Naiyaga said, "In 2015 we paid an average of $944,000 a week enabling thousands of customers or policyholders 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." Through the year, $33.3M was paid to over 1000 policyholders for life insurance maturities enabling them to meet various life needs including retirement, tertiary education, setting up small businesses, expanding an existing business, paying off a mortgage or taking a well deserved holiday.

"Congratulations to all of these policyholders. They must be commended for their wisdom in securing their financial futures and for maintaining their policies with BSP Life through the full policy term," said Mr Naiyaga. He added, "There are times when customers face financial hardships and often reconsider whether it is worthwhile retaining their policies. Customers who are able to prioritise and have diligently continued their insurance payments are now reaping just rewards." Mr Naiyaga added, "We believe that having a life insurance policy is now a need and no longer a want. Life insurance is about transferring life risks to an insurer. In a family context the financial risk that comes with the unexpected passing of a breadwinner is real. Last year we paid $9.5M for death and disability claims. Of this, $7.3M was for 373 death claims. While a loved one cannot be replaced, it helps that beneficiaries have some financial security to assist them move forward."

Of the death claims paid, 200 or 54% were aged below 55. The majority of deaths were recorded in the 50-54 age bracket with the highest cause of death being heart related diseases. Mr Naiyaga stated, "We are seeing a very concerning rise in deaths occurring below the age of 55 which directly correlates to the rise in Non Communicable Diseases. The untimely passing of a breadwinner places immense pressure on families both financially and emotionally. BSP Life places equal emphasis on the importance of having a life insurance policy with the need to manage our health and lifestyles so that the effects of NCD's can be mitigated". On health insurance benefits, BSP Life paid $6.3M throughout the year covering overseas evacuations, local hospitalisation and general outpatient services. Close to 70 insureds were evacuated overseas for life threatening conditions, costing a total of $3M. This averaged close to $45K per evacuation highlighting the critical need to have medical insurance. Without this cover, these customers would have struggled with their chronic conditions and deteriorating quality of life. It was also noted that those in the 41-60 age bracket accounted for more than 54% of the medical claims.

Mr Naiyaga further added, "We take great care to be there when our policyholders need us most. Our ability to pay these large benefits 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." Since re-branding five 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 concluded, "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 has over 90,000 policyholders and 150 professional advisors licensed by the Reserve Bank of Fiji to provide solutions to customised needs. There are 10 Customer Service centres Fiji-wide.