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EWN reports that Old Mutual last week announced that it had temporarily closed its retrenchment cover product so it could determine a fair and reasonable price once the coronavirus (Covid-19) pandemic had been factored in.
Liberty also announced the suspension of its disability and retrenchment cover, citing uncertainty related to the Covid-19 and the difficulties in assessing the potential risks in respect of new applications. Old Mutual’s John Kotze explained: “We use past experience to determine a fair and reasonable price for that cover. Going forward, we have no idea what the reasonable experience is that we will encounter as a result of Covid-19.” Kotze indicated that they were expecting an increase in retrenchment cover claims and that “once we have a sense of that that will provide us with an opportunity to reopen that product at a new fair and reasonable price.” Old Mutual and Liberty gave assurances that they were in a position to pay all valid claims for existing retrenchment cover customers.
- Read the full original of the report in the above regard by Kgomotso Modise at EWN
Get other news reports at the SA Labour News home page