Funeral Insurance Complaints Dominate Ombudsman Data

The FAIS Ombudsman reports that funeral policy providers account for more than half of all consumer complaints in South Africa.

Updated on Oct. 28, 2026 in Insurance

Bold flat-color editorial illustration of a heavy geometric block on a stone plinth, evoking institutional regulatory authority. — Funeral insurance policy providers accounted for over 50% of complaints filed with the South African FAIS Ombudsman in the fiscal year ending March 2026. AI Illustration. Upload story photo >

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As of the fiscal year ending in March 2026, funeral policy providers represent over 50% of complaints filed with the FAIS Ombudsman. The regulatory office successfully recovered nearly R40 million for consumers during this annual period.

Why it matters

The high volume of disputes highlights ongoing challenges within the funeral insurance sector regarding transparency and service delivery. These trends indicate a continued need for regulatory oversight to protect consumers from potential malpractice within this specific market.

The FAIS Ombudsman resolved cases through 12 formal determinations, with less than 30% of all investigated files resulting in financial awards or settlements for consumers.

The players

FAIS Ombudsman

This regulatory office based in Johannesburg handles complaints and investigates conduct within the South African insurance sector.

Luvuyo Burial and Consulting

This former funeral policy provider was the subject of most determinations issued by the Ombudsman and has lost its license.

The details

Most of the formal determinations issued by the office were directed at Luvuyo Burial and Consulting, a firm that has since lost its operational license. While complaints against large financial service providers are currently decreasing, the funeral policy segment remains the primary source of consumer grievance.

The FAIS Ombudsman concluded its fiscal year on 31 March 2026.

Market Dynamics

The report reflects the enforcement activity conducted under the Financial Advisory and Intermediary Services (FAIS) Act, which governs conduct in the financial sector. This oversight marks a departure from the historical reliance on self-regulation, as authorities take a more active role in monitoring smaller burial service providers.

Consumers should verify the licensing status of their burial insurance providers to ensure their policies are held by authorised entities. Those who experience service failures are encouraged to document their interactions to facilitate potential recovery through the Ombudsman.

The takeaway

Consumers should regularly review the status of their funeral policy providers to avoid potential coverage gaps or fraudulent practices. Maintaining detailed records of communication is essential for those seeking to resolve disputes through formal mediation channels.