JOHANNESBURG - Discovery Life is the first South African insurer to consider COVID-19 vaccination in its underwriting procedure.
It said that clients with new policies who indicate that they are unwilling to be vaccinated may be subject to higher premiums.
It said that the disease is more rampant than was originally projected and the risk is higher.
Discovery says the decision was based on a combination of vaccination efficacy, vaccine availability and the longer-than-expected duration of COVID-19.
Discovery Life Deputy CEO Gareth Friedlander said: "I think we have all seen the devastating effects of COVID-19 from a life insurance perspective... its had a huge impact on the mortality are across SA.
"The good news is that vaccinations work incredibly well the evidence is compelling we are seeing about a 95 percent efficacy rate against hospitalisation of COVID-19.
"You can almost reduce the risk down to zero. When it comes to insurance that is powerful."
"Vaccinations become a huge risk mitigant... what we have introduced is the ability to reward clients for being vaccinated we launched, yesterday [Thursday] a new offer which enables new clients who have been vaccinated or commit to be vaccinated to receive their maximum possible payback of their life insurance premiums in their first year.
"On the flip side those who do not want to get vaccinated we then reserve the right to potentially load those clients premiums base on age and other comorbidities."