Finweek English Edition - - INSIGHT - Marc Ash­ton

not Fin­week who com­ments on the R4.9m (112% hike) for the Boni­tas prin­ci­pal of­fi­cer. Th­ese com­ments were made by Mon­wabisi Gat­sho, who heads up the CMS. Gantsho iden­ti­fies the boards of Boni­tas, Bestmed and Dis­cov­ery in terms of re­mu­ner­a­tion is­sues.

Fur­ther on this is­sue, it could be ar­gued that this rightly should come un­der sig­nif­i­cant scru­tiny. R4.9m in cu­ra­tor­ship and prin­ci­pal of­fi­cer fees is high. Does the re­sponse from Boni­tas sug­gest that mem­bers can ex­pect to see th­ese fees drop sig­nif­i­cantly in 2013/14? Boni­tas ref­er­enced the Global Credit Rat­ings (GCR) re­port in its re­sponse, point-

B ing to the rat­ing of the scheme, which is in­deed pos­i­tive. It should, how­ever, be dis­closed that Boni­tas com­mis­sions this re­port.

GCR makes note of the fact that “The merger with Pro Sano (ef­fec­tive I Jan­uary 2013) en­hances Boni­tas’ mar­ket po­si­tion. In this re­gard, the scheme’s sta­tus as the sec­ond-largest en­tity in the open med­i­cal schemes has been ce­mented. The growth has also as­sisted the scheme in main­tain­ing a favourable mem­ber­ship age pro­file. This not­with­stand­ing, note is taken of the com­plex­ity of ac­cu­rately pric­ing and man­ag­ing the dif­fer­ent mem­ber­ship pro­files. The bed­ding down of the new risk pool in or­der to main­tain the scheme’s in­ter­nal risk man­age­ment bench­marks rep­re­sents a key mea­sure of man­age­ment’s strate­gic im­ple­men­ta­tion ca­pac­ity in the short term.”

GCR de­scribes the liq­uid­ity ra­tios as “ad­e­quate” and the abil­ity to man­age risk as­sets is viewed as “rel­a­tively well man­aged”.

Fi­nally, the is­sues around sol­vency, costs and ben­e­fits need to be scru­ti­nised in­tensely, as GCR notes: “Fur­ther, Gov­ern­ment’s longer-term ob­jec­tive to in­tro­duce an NHI frame­work in South Africa, to which the as­so­ci­ated ef­fect on the med­i­cal schemes in­dus­try re­mains un­cer­tain, could neg­a­tively im­pact the rat­ing.”

We be­lieve that we have given Boni­tas a fair op­por­tu­nity to re­spond and look for­ward to ro­bust de­bate go­ing for­ward.

Marc Ash­ton

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