In partnership with Morningstar: In 2020, the South African Reserve Bank (SARB) dramatically cut the country’s interest rate by 3%, lowering the repo rate to a historic low of 3.5%. The SARB initially started to cut interest rates in response to declining inflation, which was sitting towards the bottom- end of the inflation target band (of between 3% and 6%). In mid-2020, the SARB cut the repo rate even further, in response to the COVID-19 crisis, to provide relief to consumers and businesses and promote economic growth. By cutting the interest rate, the SARB intends to provide a helping hand to the economy, by freeing up more capital for lending (by financial institutions) to households and businesses.
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In partnership with Morningstar: Fight or flight refers to the instinctive physiological response to a threatening situation, which readies one either to resist forcibly or to run away. When markets are turbulent, we often see investors struggle with the same physiological response. They are left to choose between staying invested amid the volatility (i.e. fight) or fleeing (i.e. flight) to safe-haven assets and cashing out their investments. More often than not, the latter path is taken. If you would like a Financial Advisor to review your investments, please email to [email protected].
When to take a test and when will it get covered? You’re covered for 2 COVID-19 Polymerase Chain Reaction (PCR) screening tests every calendar year (1 January to 31 December), regardless of the outcome of the test. Medical Aid will pay for COVID-19 diagnostic tests, provided that the member who took the test:
Will you have to pay upfront and submit a claim for it to be paid from this benefit? This depends on the payment arrangements your medical aid have with your healthcare provider. If your healthcare provider submits a claim on your behalf, your medical aid will reimburse them directly subject to meeting the clinical entry criteria of the benefit. If your doctor requires you to pay upfront, you can submit your claim to your medical aid. What does it mean if I test positive for the PCR test? A positive PCR result confirms that you are infected and that you can spread it to others. You would need to contact your doctor to discuss the implications of this finding and the next steps to take, whether this be to self-isolate at home and/or on your planned hospital admission. If I test Positive, how do I self-isolate and for how long do I self-isolate? If you are infected and are asymptomatic i.e. you show no symptoms, you must stay at home and self-isolate for 10 days from the date of your positive test. In case of severe respiratory illness or severe shortness of breath you need to immediately consult with your doctor or go to the nearest hospital emergency unit. In case of severe disease, you will probably be hospitalised, and you would need to continue to self-isolate for 10 days after clinical stability is achieved. If I test positive for Antibody test, will I have immunity to COVID-19 infections in the future? As COVID-19 is a new virus, we cannot tell for sure how long antibodies will last or how well they can protect against future infections. Even though it is believed that a person will have some level of immunity after infection, which is the scientific principle that the development of a vaccine is based on. However, all individuals should still adhere to recommendations by the department of health on social distancing, hygiene, and personal protection, regardless of their antibody test result. How am I covered for COVID-19? This benefit, available on all plans, is covered by the scheme for cases of outbreak diseases and out of hospital healthcare services related to COVID-19. These healthcare services are covered up to maximum of 100% of your chosen medical scheme’s rate in accordance with Prescribed minimum benefits where applicable. Am I covered if I am in a waiting period? The scheme resolved to change its’ approach to underwriting for the duration of the outbreak, specifically with regards to cover for COVID-19. Members that are diagnosed with COVID-19 after joining will have access to the benefit, even if they are subject to a waiting period at the time of being diagnosed with COVID-19. Members that are diagnosed with COVID-19 before joining the scheme will not have access to the benefit and will be subject to waiting period to protect the scheme and its members against anti-selection. Emergency care – When should I call 911 or go to the emergency department? Call ER24 on 084124 if you are experiencing potentially life-threatening symptoms. These are some of the symptoms for which you should immediately call ER24;
What if I’m afraid to go to the emergency department? We understand those fears, but emergency department staff members wear personal protective equipment, and all places are fully cleaned and disinfected. Please note, that waiting too long to seek care for some health care emergencies is a bigger risk than the chance of contracting COVID-19. How do I know I won’t get COVID-19 in the emergency department? Depending on the urgency of the patient’s medical needs, everyone entering the emergency department is immediately screened for symptoms of COVID-19. How do I know I won’t contract COVID-19 if I need to stay in the hospital for treatment?
All labour and delivery patients – How are women protected whom come in for labour and delivery? In order to prevent the spread of COVID-19 and protect the health of all patients and staff members, testing for COVID-19 and taking precautions for each woman who is admitted to labour and delivery for delivery. The care team will follow special infection prevention procedures and wear proper personal protective equipment. Depending on the woman’s COVID-19 test results, she may be cared for in a special room and according to COVID-19 guidance for deliveries. What to expect when you go to the hospital During the COVID-19 pandemic, we have extra measures in place to prevent the spread.
Registration for COVID-19 Vaccine Acting health minister Mmamoloko Kubayi-Ngubane has announced a major boost to South Africa’s Covid-19 vaccination plans, with vaccines now being made available to more age groups and on weekends. Kubayi-Ngubane said that the government had also agreed to open vaccine registrations to people in the 35 – 49 age group.
All staff will be vaccinated, even if you’re not part of Discovery health, if they are part of company staff list, then they are eligible to receive vaccination. Should you be interested, please contact us and we will assist to communicate with Discovery to action Discovery Vaccination programme for employers.
Vaccination during riots and civil unrest period Please note that some of the vaccination sites that are affected are temporarily closed due to looting, riots and civil unrest. The vaccination rollout will be delayed but still encourage all clients to please use their digital form to register and make appointments. Those that missed their appointment due to recent looting will be rescheduled. If you have any other queries please contact our Health department, email [email protected], Tel 011-6581333, Option 2 for Medical Aid. Medical cover has become expensive. These days, even a minor operation can have you digging into your long-term savings. The high cost of hospital stays, specialist fees and other medical expenses makes it important to have at least some form of medical cover. With all this need for cover a friend or family member might mention to you, different medical aid options or that you must consider medical insurance. This may then get you to ask yourself, what is the difference between Medical Aid and Medical Insurance? Below we provide all the information you’ll need to make the right choice for you and your family. Regulation In South Africa, all medical aid schemes are regulated by the Medical Schemes Act and governed by the Council for Medical Schemes. Health insurance, on the other hand, is regulated by the long-term insurance act and governed by the Financial Services Board. Price One of the most noticeable differences between the two types of cover is the price. Medical aid schemes are notably more expensive, with higher monthly contributions. Medical insurance, however, is far more affordable, but this means there are limitations when it comes to what is covered. You should always consider your health needs when deciding which is best for you. Benefits Medical aids provide Prescribed Minimum Benefits (PMBs) for a list of chronic disorders. Medical insurance plans usually focus on daily health care, such as doctors’ visits and short-term medication. A more comprehensive health insurance plan may offer hospital care in the event of an accident or emergency, to a fixed sum. Although a medical aid plan provides more comprehensive cover, it doesn’t generally include personal accident disability or cover for loss of limbs. Health insurance does. It may also include death and funeral cover, which medical aid schemes do not offer. Medical aid schemes offer comprehensive hospital cover, usually for a large variety of in-hospital treatments, depending on your plan. However, there is often a shortfall between medical aid rates and the rates charged by the medical practitioners. (Therefore, Gap cover is always recommended, so to cover for any shortfalls that may occur) Medical insurance does not cover extensive hospital benefits. Hospitalisation is usually limited to accidents and emergencies and only covers specified costs. If costs exceed the limits, members will have to pay for the extra. Medical aids are also required to cover chronic medication, while medical insurance is not. Tax benefits Medical aid contributions are deductible for tax purposes whereas health insurance premiums are not. To apply for cover, contact our healthcare consultant Tammy email: [email protected] tel:(011)658-1333 South African Market Update Most major global equity markets ended the month with either modest gains or in negative territory, as concerns around the rapid spread of the Covid-19 Delta variant spooked investors. That said, the vaccination drive in developed markets, particularly the UK and the US continued, with between 50-60% of the population in these regions at least partially vaccinated. The US Federal Reserve (Fed) met during the month and kept interest rates unchanged, however, its 2021 calendar year inflation forecast moved slightly higher. What surprised some market participants was the slightly more hawkish tone from the Fed, as they signalled that there could be two interest rate hikes in 2023, with the first hike expected in Q3 2023 (slightly earlier than the original early 2024 estimate). The Fed’s preferred measure of inflation, core personal consumption expenditure (PCE) moved higher to a year-on-year figure of 3.4% in May (the highest increase in prices since 1992) from 3.1% in April. The Fed has continued with its rhetoric that these price pressures are driven by supply bottlenecks and the reopening of the economy and are, therefore, transitory. South African equities ended the month lower for the first time in eight months (since October 2020), as disappointing performance from resource counters (gold counters in particular) weighed on the performance of the local equity index. Local bonds ended the month higher, despite foreign selling (foreigners sold R14.2 billion of SA bonds in June) and a weaker rand acting as a headwind to the performance of the asset class. Local listed property delivered strong performance for the month, despite giving up some gains towards the end of June on the back of concerns around further Covid related restrictions. The rand reversed some of its recent impressive run, ending the month weaker against most major currencies as hawkish comments from the Fed proved supportive of the performance of the US dollar. South African President Cyril Ramaphosa announced that the country will move to an amended level 4 lockdown (effective from the 28th of June) which includes restrictions on alcohol sales, prohibiting indoor and outdoor gatherings and an extension of the overnight curfew. The harder lockdown measures come on the back of a surge in Covid-19 infections across the country as a result of the highly contagious Delta variant. SA headline CPI moved significantly higher to a year-on-year figure of 5.2% for May (from 4.4% in April), as the base effects of higher fuel and food prices filtered through to the inflation print. SA’s trade balance came in at a surplus for May (R55 billion), following a revised surplus for April of R51 billion, as exports increased 1.5% month on month and imports retreated slightly. The JSE All Share Index (-2.4%) ended lower for the month, as a stronger US dollar acted as a headwind to the performance of major commodity counters. Local equity sectors had mixed performance for the month, with Industrials (+0.4%) outperforming both Financials (-3.0%) and Resources (-6.4%). The top performing shares amongst the largest 60 companies on the JSE in June were Foschini Group (+20.0%), Exxaro (+9.5%) and Bid Corp (+6.6%). The worst performing shares in June were Harmony Gold (-28.7%), Gold Fields (-26.0%) and Anglogold Ashanti (-22.0%). Listed property (+3.4%) had a strong month, as positive performance from large index constituents including Growthpoint (+3.1%) and Redefine (+3.4%) acted as a tailwind for the performance of the local property index. Local bonds (+1.1%) ended the month higher, as the nominal yield curve continued to flatten during the month in reaction to the market pricing in expectations of future interest rate hikes. Cash delivered a stable return of +0.3% for the month. The rand was weaker against most major developed market currencies for the month. The rand depreciated against the US dollar (-3.9%), the euro (-0.9%) and the pound sterling (-1.1%) over the month. Click here to Read more Global Market Summar June marked the end of the first half of 2021, with most major global equity markets managing to end on a positive footing. Within the US, the S&P 500 closed at a record high 4 297.50 points, registering a fifth consecutive monthly gain as well as its best first half performance since 2019. On the vaccination front, little was changed with regards to the divergence between developed market (DM) and emerging market (EM) vaccination rates. DM’s continued to show further progress relative to EM’s, with data showing that the US has now inoculated over 60% of its population, up from 50% in the previous month.
With regards to economic data, June soft and hard data continued to point towards a continued recovery. The US labour market continued to show signs of growth, with June’s non-farm payrolls coming in at 850 000, ahead of Dow Jones economist expectations of 706 000. More importantly, however, was the unemployment rate, that rose to 5.9% relative to market expectations of 5.6%, suggesting that there is scope for the Fed to continue with its support of the labour market. Consumer confidence as measured by the Conference Board also came in ahead of market expectations, recording a 16-month high of 127.3 points. This survey data places more emphasis on the labour market and June’s reading pointed towards an increase in durable goods demand and home purchases. On the inflation front, Core PCE (the Fed’s preferred inflation measure) came in at 3.4% year over year, but the real action was in the breakeven market, where both the 5-year and 10 year numbers have been trending lower, suggesting that the market could be re-calibrating its longer-run inflation expectations lower. The Fed’s quarterly forecasts suggested that it now has more members that expect inflation to surprise to the upside. There are now seven members (from four) out of eighteen that prefer an interest rate rise in 2022 and the median member also now expects at least two interest rate hikes in 2023 relative to past expectations that 2024 would be the starting point for any interest rate hikes. Against this backdrop, longer-term US rates dropped, resulting in a flattening of the US yield curve which suggests that the market interpreted the Fed’s comments as growth negative. Within equities, Financials sold-off as they bore the brunt of the flatter yield curve as they generally borrow on the short-end of the curve and lend on the longer-end of the curve. Click here to read more In partnership with Morningstar, Keeping it simple this savings month. In a world of information overload, social media, the increasing size of the investable universe, cryptocurrencies and Robinhood trading – to name but a few – it can be easy to get distracted from what is important. With so much market noise, it has become more important than ever to identify the things investors should not care about. We outline our top five below. The last two weeks have brought immense loss and turmoil in the country. With the unexpected unrest in the country a lot of business owners are reassessing their insurance cover. SASRIA is the only insurer in South Africa that provides cover for loss or damage to insured property as a direct result, of civil commotion, public disorder, strikes, riots and terrorism. SASRIA does not do direct business with the public but is included in most commercial and domestic insurance policies. SASRIA will be for the following coverages:
On the SASRIA website https://www.sasria.co.za/, they note the following: “SASRIA cover excludes theft. Looting is not a stand-alone SASRIA peril and will only be considered as a valid claim in terms of SASRIA if it occurs during an active SASRIA peril for which SASRIA accepts liability.” The above statement speaks of looting, and it is important to understand what it means, SASRIA defines Looting as the following: “To steal goods, typically during a riot, strike, or civil commotion. Looting must take place during an event that SASRIA covers. SASRIA does not cover theft.” There may also be instances where a fire may occur and that may fall under SASRIA. The insurance company will always look at the cause of the accident. If the fire is caused by a gasoline bomb thrown through a window into the building during a riot, SASRIA will be responsible for the compensation of the claim. Currently insurance companies have paused activating any new business during this time of unrest especially on clients with no current insurance in place. It is therefore important to highlight that insurance cover should be taken before the risk is eminent. If you would like a quote for yourself or your business, please contact Marizka or Ed in our Short-term department [email protected] tel:(011) 658-1333 |
AuthorKevin Yeh Archives
January 2025
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