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HIV/AIDS threatens life insurance funds

Group life and disability funds are under threat as HIV/AIDS-related claims increase, South Africa's Business Day reported on Friday.

Despite companies making serious attempts to manage HIV/AIDS in the workplace, insurance broker say the prospect of rocketing premiums and reduced benefits could leave group life and disability schemes unsustainable.

"The concern from a risk management point of view is that therapy does not necessarily lower the incidence of claims and does not necessarily prolong life expectancy beyond retirement," executive director of Fusionry Integrated Risk Solutions, Steve Watson said.

Dave Strugnell, head of actuarial research and development of benefits company, says HIV/AIDS is almost solely responsible for recent increases in premiums.

"Just as the tragedy of this dreaded disease is felt at every level of our communities, so is it in companies," Strugnell said.


This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions

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