GCR has maintained the domestic ZAR currency claims paying ability rating of Compcare Wellness Medical Scheme (“Compcare”) at A (single A).
Cognisance was taken of the various risk management interventions undertaken by Compcare, with the scheme reporting a significant improvement in relative healthcare expenditure in F10. This, in turn, supported a marked turnaround in the scheme’s net healthcare result to a surplus position. This is expected to be sustained in F11. The rating was further supported by the fact that key solvency ratios have remained at comfortable levels over the review period. The conservative investment stance adopted, and concomitant strong key liquidity ratios displayed are considered favourable. Furthermore, expressed as a percentage of GPI, the notable decline in non-healthcare expenditure over the last 3 years was also positively viewed.
Notwithstanding this, the high degree of concentration in terms of employee groups is considered a constraining factor. Moreover, cognisance was also taken of the relatively small size of Compcare and its comparatively older age profile, which increases the risk profile of the scheme, given the typically higher claiming patterns of aged members.
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