WeeklySA_AdminSCRUTINY: Clientèle and Sanlam-linked firms collect over R143-million monthly from more than 1 million social grant beneficiaries, raising questions about market concentration and oversight…
By WSAM Correspondent
Clientèle Life and Sanlam, along with their subsidiaries, are collecting the bulk of funeral policy premiums deducted directly from South African Social Security Agency (SASSA) grants — amounting to more than R143-million every month from nearly one million beneficiaries.
In total, just over R165-million is deducted monthly from 1.11-million SASSA beneficiaries, according to figures released in March by Social Development Minister Nokuzola Sisisi Tolashe in response to a parliamentary question from DA MP Bridget Masango.
The data highlights the dominance of two major insurance clusters — Clientèle and Sanlam — which together account for 86.83% of all deductions from pension and disability grants.
The issue of funeral policy deductions has been under scrutiny since last year, when reports emerged of pensioners alleging unauthorised deductions from their grants. In some cases, beneficiaries reported monthly deductions of between R100 and R280 for funeral policies they claimed not to have signed up for.
Investigations into several cases found that affected pensioners were reimbursed, although insurers maintained there was no evidence of wrongdoing and insisted that valid consent had been obtained.
Under the Social Assistance Act, registered insurers are permitted to deduct funeral policy premiums directly from SASSA grants before funds are paid into beneficiaries’ accounts. However, only one policy may be deducted per grant, and it may not exceed 10% of the total grant value.
Market concentration
While 30 insurers are listed as participating in the system, the market is heavily concentrated.
Among pensioners, 936 243 beneficiaries have deductions made from their grants, totalling just under R140-million each month. Emerald Life accounts for the largest share, collecting R40.92-million from over 241 000 policyholders, followed by Assupol and 1Life Insurance.
A similar pattern is seen among disability grant recipients, where the same insurers dominate premium collections.
However, the structure of the industry means that many of these brands fall under larger corporate groups.
Clientèle has expanded rapidly through acquisitions, including the purchase of 1Life Insurance in 2024 and Emerald Life in 2025. As a result, it now controls a significant share of funeral policy deductions, both directly and through subsidiaries.
Sanlam has also consolidated its position through acquisitions, notably integrating Assupol into its retail mass business. Its broader network includes Safrican Insurance and Centriq Life, the latter linked to Santam — in which Sanlam holds a majority stake.
Oversight and safeguards
Responding to concerns about potential exploitation, Tolashe said the system governing funeral policy deductions is tightly regulated. “Robust systems and controls have been implemented to ensure that every deduction request complies with the regulatory framework and that beneficiaries are protected from exploitation,” she said.
These measures include biometric verification — such as fingerprint or facial recognition — matched against Department of Home Affairs data, as well as “liveness checks” to confirm the physical presence of beneficiaries and prevent fraud.
All mandates are stored in a central system that validates compliance, affordability and premium limits. Agents implicated in fraudulent or misleading practices can be blocked across the entire insurance ecosystem.
Beneficiaries can report disputes via SMS, at SASSA offices or directly with insurers. Complaints trigger forensic investigations, and where irregularities are found, policies are cancelled and deductions refunded.
Despite these safeguards, Masango asked whether any action had been taken against insurers found guilty of mis-selling or unauthorised deductions in the past five years.
Tolashe confirmed that no such action had been taken, noting that SASSA can only intervene when insurers violate the provisions of the Social Assistance Act or related regulations.
