Disturbing insurance trend emerging in South Africa

• Life insurers in South Africa have flagged a sharp increase in cases where people are allegedly killed so beneficiaries can collect insurance payouts.
• The National Financial Ombud Scheme (NFO) detected 38 murder-for-money cases in 2024, up from 14 cases in 2023, and has adopted a clear position when a beneficiary is facing a criminal investigation over the death of a policyholder.
• The NFO may require the insurer to assess the claim on its merits based on the available evidence and the terms and conditions of the policy if there has been an unreasonable delay in finalising the criminal matter.