BSP Life Customers Benefit From Over $58M in Benefit Payouts

Date: 04/04/2018

BSP Life, Fiji's leading Life and Health insurance provider today announced that it paid F$58.6M in various benefits to customers in 2017. This brings the 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 $58.6M, $48.1M was for Life Insurance benefits and $10.5M for Medical Insurance benefits. 

 Life & Health Insurance Payouts (F$)  2017  2016  2015
 Living Benefits  38.2M  32.2M  33.3M
 Death & Disability  9.9M  7.6M
 7.4M
 Medical  10.5M  8M  6.3M
 Total Payouts  $58.6M  $47.8M  $49.1M

 

BSP Life's Managing Director Mr Malakai Naiyaga said, "On average we paid out $1.1M a week in 2017, enabling thousands of customers or policyholders to benefit from their policies with us. 

On health insurance benefits, Mr Naiyaga highlighted that it rose by $4.2M over the last three years. BSP Life paid $10.5M 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. 

The top four most frequent medical conditions requiring overseas evacuation included cancers, orthopaedics & replacements, eye treatments and heart related conditions. The majority of payouts were for insureds in the age group 31 - 40 years. 

Mr Naiyaga stated, "We are 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. Chronic diseases faced by breadwinners place 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".

"Without these benefits our medical customers would have struggled with their chronic conditions and would been burdened with a deteriorating quality of life." 

Mr Naiyaga further highlighted the NCD impact with their Death Payouts results. The highest number of Death payouts was for the age group 50 - 54 years or 23% of the total claims received. When the age bracket was expanded to include 40- 54year olds, the percentage pf payouts was 46% - almost half of the total death claims payouts.

On a positive note, Mr Naiyaga highlighted that through the year, 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% 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 taking a well-deserved holiday". "Over 68% of these payouts were to policyholders over the age of 50. These payouts no doubt would supplement the compulsory retirement savings and add value towards a life of financial independence while in retirement."

Mr Naiyaga commended these policyholders for their commitment to ensuring premiums 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. "Committing to a healthy lifestyle while maintaining your life insurance premium payments can be rewarding," said Mr Naiyaga. "It's delightful to see many Fijian households benefiting from their bread winners' investment in a BSP Life insurance policy.  We view life and health insurance as an essential and important integral part of one's financial planning." 

Mr Naiyaga further added, "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."

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 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 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 Fiji-wide.