Industry Research: Medical Schemes

Image placeholder
South African Medical Schemes During COVID-19: Short-term Gains with Longer-term Pain
  • Industry Research: Medical Schemes
  • Year : Mar 2021
Access Now
Summary

Over the near term, no major rating movements are expected within the GCR portfolio, amidst economic challenges emanating from the COVID-19 pandemic. We expect persisting pressures on membership growth and age profile, consistent with the steady downward trend of memberships’ characteristics. However, these credit negatives are expected to be offset in the short to medium term by the strength of schemes’ financial profile, with a lower claims experience compared to pre-pandemic periods stimulating net healthcare surpluses and reserves accumulation.

Additional Information

Because of the panic created by its outbreak and rapid spread, the pandemic increased awareness on the importance of planning for healthcare expenses, which support a steady trend in the demand for healthcare solutions. However, considering that pre-pandemic economic conditions were already weighing down on the industry growth potential, this membership stability may not be sustainable over the longer term if the additional economic challenges due to the COVID-19 pandemic persist.

Related Publication

South African Medical Schemes During COVID-19: Short-term Gains with Longer-term Pain

Over the near term, no major rating movements are expected within the GCR portfolio, amidst economic challenges emanating from the COVID-19 pandemi...

Profmed (2017-10)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Rating Securitisation Transactions Involving Intermediate SPVs

This report explains GCR’s approach to the risks related to each of these SPVs to rate the debt issued by the Issuing SPV. Please note that t...

Available Purchase Options: