CIMAS Medical Aid Society is set to increase contribution rates, as the claims-loss ratio continues to widen far above international levels.
GAMMA MUDARIKIRI, OWN CORRESPONDENT
Group chairman Steve Kuipa in a 2012 annual report, said the company recorded claims of $73,7 million representing an 88% claims-loss ratio, which is far above the international level, prompting the review of contribution rates.
“The international norm of 80% has not been achieved since dollarisation,” he said. “This worrisome trend will require an upward review of contribution rates.”
Claims-loss ratio is an indicator of how well an insurance company is doing and reflects whether companies are collecting premiums higher than the amounts paid in claims.
Companies that have high loss claims may be experiencing financial trouble.
Kuipa said the cost of healthcare in Zimbabwe was the highest in the region and members continued to meet deficits in the treatment of certain conditions, although he added that the company had made arrangements with hospitals in the region and as far as India to enable members to access service with minimal or no shortfalls by negotiating on common tariffs between services providers and healthcare funders.
However, in the period, the group recorded a 17% increase in contribution income to $85 million attributed to an 8% increase in membership to 191 000.
The increase in membership translated to a consolidated revenue growth of 16% to $97,5 million last year.
Kuipa said the introduction of the multi-currency regime had attracted players from abroad, which had seen the number of registered medical aid funders increasing to 28.
In the period the healthcare division recorded a 28% growth in revenue as total attendance at Cimas clinics went up to 152 454 in 2012, an increase of 8% over the previous year.
However, the company’s subsidiary Medco, recorded a loss after tax of $5,3 million during the period.
Kuipa, however, added that a new medical administration system is being installed to upgrade the information technology system for the new company, which is expected to return to profitability by the beginning of 2014.
The group said it remained optimistic the post-elections era would produce a conducive economic environment to allow improvement of its operations.