The two South African insurance giants collect 87% of all funeral policy premiums deducted directly from pension and disability grants paid by the South African Social Security Agency (SASSA). Illustration: Lisa Nelson
- Two South African insurance giants deduct 87% of all funeral policy premiums directly from social grants.
- Clientel Life and Sanlam, together with their subsidiaries, collect R143.33 million in monthly policy deductions from approximately one million pension and disability grant beneficiaries.
- In total, premiums amounting to more than R165 million are deducted from 1.11 million SASSA beneficiaries every month.
The two South African insurance giants collect 87% of all funeral policy premiums deducted directly from pension and disability grants paid by the South African Social Security Agency (SASSA).
Clientele Life and Sanlam, together with their subsidiaries, collect R143.33 million in monthly policy deductibles from approximately one million beneficiaries. In total, premiums amounting to more than R165 million are deducted from 1.11 million SASSA beneficiaries every month.
Figures regarding funeral policy cuts in March were provided by Social Development Minister Nokuzola Sisi Tolashe, in a parliamentary response. Question From Bridget Masango (DA).
from bottom to top And Limpopo Mirror It was reported in September last year that hundreds of pensioners claimed money was being deducted from their SASSA old age grants without their permission. The deductible of between R100 and R280 per month was for funeral policies.
When SASSA was given six examples and asked about the deductibles, it confirmed that all affected beneficiaries had funeral policies through 1Life or Emerald Life.
Cases investigated and pensioners examined all reimbursedHowever the insurance companies insisted that they found no evidence of irregular conduct. The companies said they had evidence that pensioners agreed to the cuts, but questions remained over how the transaction was concluded.
In his parliamentary question, Masango asked for a list of insurance companies that have contracts and/or agreements for funeral policy premiums to be deducted from the social grant, in terms of the Social Assistance Act. This allows registered insurance companies to apply for deduction of the policy premium from the SASSA grant before payment is made into the beneficiary's bank account.
List provided by the Minister This includes the total number of beneficiaries and the amount paid to each insurer. It also lists deductions against old age pension and permanent disability grant. Is a war veteran who receives a grant from which policy deductions are made.
While SASSA does not regularly publish real-time details by grant type, the best available figures suggest that approximately 3.5 to 4 million citizens receive an old-age pension. Approximately 1 to 1.2 million people receive a disability grant from SASSA.
Only one funeral policy premium is allowed to be deducted from the grant, and this cannot exceed 10% of the total amount payable to the beneficiary.
Many insurers, few players
There are names of 30 life insurers in the list provided by the minister. Most of the deductions are for funeral policies taken by pensioners.
In total, 936,243 pensioners have had their monthly grants deducted, amounting to just under R140 million every month. The majority of this money – R40.92-million, or 29% – goes to Emerald Life, with 241,178 policyholders and an average premium of R169.67 per month. Assupol Life has 291,821 policyholders and the average premium is R135.70. 1Life Insurance is in third place with 166,636 policyholders.
For funeral policies sold to SASSA beneficiaries receiving disability grants, Emerald Life has 50,397 policyholders and collects monthly premiums of R9.06-million; Assupol has 44,327 policyholders and collects R5.57 million; and 1Life Insurance, with 28,384 policyholders, collected R3.72 million.
The figures can be misleading, as many of the insurance companies listed belong to the same group following various mergers and acquisitions that have taken place in the industry.
Clientel Cluster has grown rapidly through acquisitions in recent years. It acquired 1Life Insurance in July 2024 and announced later the same year that it had signed an agreement to purchase Emerald Life (Pty) Ltd from its owner Andre van der Westhuizen. the acquisition was allowed by the Competition Tribunal in February 2025 and implemented in June 2025.
Smaller insurers, such as Lion of Africa Life Assurance, also underwrite funeral insurance policies administered by Emerald Life. This means that even though Lion of Africa Life is the licensed underwriter, Emerald Life is the administrator and distributor of those policies.
It is estimated that Clientel Cluster will collect more than half of all premiums, either directly or through its various subsidiaries.
The Sanlam cluster is also diversified and includes Assupol and Safrican Insurance. Sanlam completed the acquisition of Essuppol in October 2024 and integrated it into its retail business in South Africa.
Assopol Life Limited, Assopol Micro Limited, Safrican Insurance Company Limited and Sanlam Developing Markets Limited all fall under the Sanlam umbrella.
Centric Life Insurance and its parent company, Centric Insurance Holdings Limited, are 100% owned subsidiaries of Centum Limited. Sanlam owns 62.3% of Centam's shares, meaning that Centric Life also belongs to Sanlam.
Together, Clientel and Sanlam collect 86.83% or R143.33 million in premiums from SASSA pensioners and disability grant recipients every month.
“Strong System”
In his questions, Masango asked the Minister what systems have been put in place to ensure that grant beneficiaries are not exploited by insurance companies.
Tolashe said the funeral policy reduction environment was strictly regulated.
“Strong systems and controls have been implemented to ensure that each deduction request complies with the regulatory framework and beneficiaries are protected from exploitation,” he said.
He said the requirements include only registered insurers (underwriters) and beneficiaries must provide biometric verification, which will include matching of facial or fingerprint against Home Department data.
“A liveness check confirms that the beneficiary physically exists, thereby reducing impersonation and mandate fraud,” Tolshe said.
Tolashe also said that continuous improvements are being made in the system.
“Agents implicated in mis-selling or fraudulent activity are immediately blocked by all insurers in the ecosystem,” he said. All mandates are stored in a central system that validates biometric verification, regulatory compliance, affordability and premium limits.
Beneficiaries can report disputes or suspected unauthorized deductions through the free SMS service, he said, or lodge queries at SASSA offices or directly with insurers.
“Every complaint triggers an insurer-led forensic investigation. If the consent is disputed or any irregularities are confirmed, the policy is cancelled, and all deductions are returned to the beneficiary,” Tolshe said.
Repeated complaints against a specific insurer or agent may even result in that company or agent being banned.
Masango also asked whether SASSA had taken any action in the past five years against insurers found guilty of mis-selling and/or requesting deductions without the permission of the grant beneficiary.
“No. In terms of the law, SASSA can only take action if any company violates the provisions of the Social Assistance Act and its regulations, including the rules of the Financial Sector Conduct Authority (FSCA),” Tolashe replied.
published with Limpopo Mirror