HIV/Aids Taking Its Toll On Industrial Sectors and Group Life Insurance Providers

Online, October 22, 2010 (Newswire.com) - According to the Progress Report, this is a "strong indicator that AIDS is a major, if not the principal, factor in the overall rising number of deaths" in South Africa. Given that this age category constitutes a large percentage of the country's workforce, the industrial sector has been severely impacted by the escalating number of Aids related deaths.

During 2010 to date, insurers have had to settle a staggering R2.4bn in claims, with industrial employers having to face rising premiums on group life insurance policies. Given this fact, an increasing number of institutional insurance clients may be compelled to request life insurance quotes from other life insurers to combat rising insurance premiums.

According to the Department of Health, approximately 1 million people are presently receiving antiretroviral drugs (ARVs) from the state. The fight against Aids has, however, not been left up to the South African government. AngloPlatinum, for example, offers free HIV testing and counselling to all employees, along with various other targeted education interventions and employee wellness programs.

According to Anglo American's spokesperson Pranill Ramchander, approximately 80% of their southern African employees participate in Voluntary Counselling and Testing (VCT), compared with less than 10% eight years ago. More than 6,000 employees are also presently enrolled in HIV/Aids disease management programmes.

Medical aid companies have also responded to the pandemic by developing HIV/Aids specific managed healthcare solutions. Life insurance companies such as All Life in turn have created life insurance products aimed specifically at people living with the disease.